Retirement Targets

LarryISU

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Just one other note regarding the discussion on how much you need saved to retire. Sure, Social Security may not be reliable. Pensions are a thing of the past. But one thing doesn't change: if you do manage to sock away that suggested sum of $1 million or more, you can invest that conservatively and have a pretty good monthly gain. Right now, T-Bills are paying over 5%. So, $1 million will net you about $4,500 a month. Even at 3% you collect $2,500 a month. And that will help you to not have to spend down your savings as much.

Just another way of stating the obvious: save as much as you can for retirement.
 

83cy

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May 14, 2006
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Just one other note regarding the discussion on how much you need saved to retire. Sure, Social Security may not be reliable. Pensions are a thing of the past. But one thing doesn't change: if you do manage to sock away that suggested sum of $1 million or more, you can invest that conservatively and have a pretty good monthly gain. Right now, T-Bills are paying over 5%. So, $1 million will net you about $4,500 a month. Even at 3% you collect $2,500 a month. And that will help you to not have to spend down your savings as much.

Just another way of stating the obvious: save as much as you can for retirement.
Couple of points SS isn't going anywhere, it's just politicians scaring people, it's going to be reliable. Reliably inadequate for most people. SS was never meant to cover 100% of retirement costs only a supplement to other investments/pensions/savings. Agree with you, save as much as you can.
 

Stormin

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Apr 11, 2006
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Just one other note regarding the discussion on how much you need saved to retire. Sure, Social Security may not be reliable. Pensions are a thing of the past. But one thing doesn't change: if you do manage to sock away that suggested sum of $1 million or more, you can invest that conservatively and have a pretty good monthly gain. Right now, T-Bills are paying over 5%. So, $1 million will net you about $4,500 a month. Even at 3% you collect $2,500 a month. And that will help you to not have to spend down your savings as much.

Just another way of stating the obvious: save as much as you can for retirement.

Time to lift the cap on the earnings subject to SS tax. Problem solved. No SS payments need to be cut. Only thing stopping it is the refusal to tax the top 2%.
 

1SEIACLONE

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Time to lift the cap on the earnings subject to SS tax. Problem solved. No SS payments need to be cut. Only thing stopping it is the refusal to tax the top 2%.
Lift the cap, but keep it the same for the business, that way the right cannot complain that its an anit business law that will harm the average American.
 

Cyclones_R_GR8

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Yeah, mine's set up the same way.

I figured out that workaround because my investment balance was low enough I didn't want to completely sacrifice it to pay any expenses.
My HSA is with Health Equity and they are making it so everyone has to have their accounts set up to have a minimum cash balance. Not sure if this is just them or all the places managing HSA's are doing this
 

dmclone

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Time to lift the cap on the earnings subject to SS tax. Problem solved. No SS payments need to be cut. Only thing stopping it is the refusal to tax the top 2%.
Sounds like a good idea. Would these high income earners also see a rise in their benefits? Would the cap be raised?
 
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BCClone

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Not exactly sure.
My HSA is with Health Equity and they are making it so everyone has to have their accounts set up to have a minimum cash balance. Not sure if this is just them or all the places managing HSA's are doing this
Thinking them. I have very little in mine (since my insurance is provided the way it is, I'm ineligible to contribute now) and I am not getting a fee. It's at a bank so I'm just getting a crappy rate so I guess I am getting a fee technically.
 
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CascadeClone

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Lift the cap, but keep it the same for the business, that way the right cannot complain that its an anit business law that will harm the average American.
It would be much less distorting, and easier politically I think, to means test SSI benefits. e.g. if you have $100k in income in retirement (from RMDs, passive income, whatever) or net assets over say, $5 million, then you don't get SSI. Just phase it out over $X, like lots of other benefits.

SSI was only meant to help the destitute elderly, widows, and oprhans. It was never meant to be a public pension. And when the retirement age was set at 65, that was the avg life expectancy - half the people were never going to collect. So I think means-testing it is a good thing to do, even though it means I will never get a dime.
 
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yowza

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My HSA is with Health Equity and they are making it so everyone has to have their accounts set up to have a minimum cash balance. Not sure if this is just them or all the places managing HSA's are doing this
I believe that is the way mine is as well. You have to reach a certain liquid dollar level before you can move into a related account to invest in a limited number of funds.
 

yowza

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My kids live here, and my grandkid will soon. Im not going anywhere either.

Extended vacations to somewhere warmer in january are a strong possibility however...
I love the state of Iowa also. Maybe a lot of nostalgia, but love the change in seasons and even a day or two where it just gets ass blistering cold and snowy. Will enjoy the freedom to travel to get away from it for a few weeks though. Or eventually do a partial winter trek to the south somewhere.
 
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yowza

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Yes, but there are also people with the mentality of "I'll start tomorrow, or next year." Etc and then years later they're like oh crap I can't retire and then work themselves to death. Then there's some who just can't walk away regardless because they have no hobbies and die on the inside.
I know a few that believe if they retire they will just die. Like that will trigger a quicker death.
 

yowza

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It would be much less distorting, and easier politically I think, to means test SSI benefits. e.g. if you have $100k in income in retirement (from RMDs, passive income, whatever) or net assets over say, $5 million, then you don't get SSI. Just phase it out over $X, like lots of other benefits.

SSI was only meant to help the destitute elderly, widows, and oprhans. It was never meant to be a public pension. And when the retirement age was set at 65, that was the avg life expectancy - half the people were never going to collect. So I think means-testing it is a good thing to do, even though it means I will never get a dime.
I am sure a bipartisan deal will get worked out pretty rapidly once we get to the critical timeframe to do it. Hopefully all sides will keep the rhetoric to a minimum.
 

BCClone

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Not exactly sure.
I know a few that believe if they retire they will just die. Like that will trigger a quicker death.
Many don't have hobbies and when they retire, they sit and stare at the walls. The sudden lack of productivity basically kills them off. My dad got one SS check before he died. I know others that did manual labor most of their lives and when they quit working, had a heart attack within a few months and were gone.
 

yowza

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Many don't have hobbies and when they retire, they sit and stare at the walls. The sudden lack of productivity basically kills them off. My dad got one SS check before he died. I know others that did manual labor most of their lives and when they quit working, had a heart attack within a few months and were gone.
I know one thing I will do is for the first few weeks is ponder how the hell it all went so fast. All the things that seemed troublesome that really weren't when all said and done. I have a number of things we plan to do, including volunteering for a lot more stuff. I will sit and wait for it to stop snowing in the winter before I go out and clean out. I won't miss having to go out in the early mornings to move snow so can get to work.

Sad about your Dad. That's a case where one wishes the SS account was transferrable in total to the spouse at least.
 

KnappShack

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I know one thing I will do is for the first few weeks is ponder how the hell it all went so fast. All the things that seemed troublesome that really weren't when all said and done. I have a number of things we plan to do, including volunteering for a lot more stuff. I will sit and wait for it to stop snowing in the winter before I go out and clean out. I won't miss having to go out in the early mornings to move snow so can get to work.

Sad about your Dad. That's a case where one wishes the SS account was transferrable in total to the spouse at least.

Our oldest hears us talk about houses and moving quite a bit. It's no secret that our location isn't great for mom and dad.

4 year old jumps in and aggressively tells us that he LOVES our house and LOVES his hometown. I mean that kid loves where he's at as a 4 year old person. Freaking little mayor here.

There will be a 4 sale sign in the yard when the youngest graduates from high school. Health permitting I'm going to stop wasting time and live where I want.
 

yowza

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Our oldest hears us talk about houses and moving quite a bit. It's no secret that our location isn't great for mom and dad.

4 year old jumps in and aggressively tells us that he LOVES our house and LOVES his hometown. I mean that kid loves where he's at as a 4 year old person. Freaking little mayor here.

There will be a 4 sale sign in the yard when the youngest graduates from high school. Health permitting I'm going to stop wasting time and live where I want.
Have a younger son that is the same way. Very sentimental and nostalgic. Blessing and a curse.
 

Cyclones_R_GR8

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Many don't have hobbies and when they retire, they sit and stare at the walls. The sudden lack of productivity basically kills them off. My dad got one SS check before he died. I know others that did manual labor most of their lives and when they quit working, had a heart attack within a few months and were gone.
You have to have some sort of plan for retirement. Sitting in a chair watching TV isn't going to cut it.
 

Max57

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CNBC article about working longer. https://cnb.cx/47dlIqh

The headline is mis-leading to incorrect. It should be, "Why planning to work longer is a bad plan"

The summary is, save/invest now because there are a lot of factors that will affect how long you can work. But if you can work longer (and enjoy it) -- that is a good thing to do.
 
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Stormin

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Sounds like a good idea. Would these high income earners also see a rise in their benefits? Would the cap be raised?

Yes. They would receive their earned SS benefit. Which is then likely subject to income tax. The algorithm used for calculating benefits has some progressive features. And simple to implement.