Went to a ss class a few months ago. That’s exactly what the fella was saying Dutch. “They” claim ss will be broke by the year xxxx and it keeps getting further out in each report.
Not that a person should rely on SS for a living wage.
With the uncertainty of the future of SS I never figured SS into my retirement plans and will consider anything I may get from it as a bonus.
Although I was a little late to the investment game I started a Roth about 18 years ago. I funded it the best I could and now have a modest sum waiting in the wings. I wish I had started investing in myself sooner but better late then never.
So take advantage of the retirement investment options out there. Be it a Roth , your companies 401K or whatever. Get started investing in yourself. You won’t miss the money now and you’ll have the potential to build yourself a nice little nest egg once your working days are done.
part of me wants to keep saving the max allowable every year and part of me is scared shitless as to what the USA will look like in 15-20 years. I’m starting to think that being a millionaire will only allow the liberals to somehow figure out a way to take it away and dispense it to the people that are not as fortunate…
Maybe it doesn’t pay to have a bunch of $ waiting for retirement??
I have the same thoughts… I see how a lot of people my age (20s) spend or lack of save/thought for the future, and am worried that I will someday be punished for being smart enough/financially disciplined enough to save and plan for the future.
<div class=”d4p-bbt-quote-title”>Jason wrote:</div>
part of me wants to keep saving the max allowable every year and part of me is scared shitless as to what the USA will look like in 15-20 years. I’m starting to think that being a millionaire will only allow the liberals to somehow figure out a way to take it away and dispense it to the people that are not as fortunate…
Maybe it doesn’t pay to have a bunch of $ waiting for retirement??I have the same thoughts… I see how a lot of people my age (20s) spend or lack of save/thought for the future, and am worried that I will someday be punished for being smart enough/financially disciplined enough to save and plan for the future.
As an older Gen Xer I look at it this way. If it comes down to a choice I’d rather have more money than less money. I’m not sure what the future will bring but since I’ve been in a position to save thru investments I’ve seen capital gains tax rates at 28%, 21% and now 15%. If they’re going to tax then they’re going to tax. I personally want my savings bucket as big as it can be because when I retire that’s going to be my biggest source of income. Not everyone has a retirement pension or health plan anymore. I also know the Baby Boomer generation is bigger than my generation and I’m more likely to lean on future cuts to Social Security or Medicare benefits. If that turns out to be the case (not to mention the number of people in their 20s on this thread talking about retiring at age 50) I think it would be wise to be saving.
art of me wants to keep saving the max allowable every year and part of me is scared shitless as to what the USA will look like in 15-20 years. I’m starting to think that being a millionaire will only allow the liberals to somehow figure out a way to take it away and dispense it to the people that are not as fortunate…
Maybe it doesn’t pay to have a bunch of $ waiting for retirement??I have the same thoughts… I see how a lot of people my age (20s) spend or lack of save/thought for the future, and am worried that I will someday be punished for being smart enough/financially disciplined enough to save and plan for the future.
Because a huge percentage of working people in the US are saving in, and relying on, 401K, Roth, IRA and other tax-sheltered plans for their income in retirement, messing with these programs has become a “third rail” issue. Tuch it, and you die (politically).
This fear of being “punished for saving” idea is an excuse some use for not saving. Looking at it objectively, the chances the government would “take it all away” is exactly zero. So now, you’re down to niggling about percentages, but what you can’t argue is that if you have zero, then you’re screwed regardless of if the government takes 15% or 17.2% or 22.275% or whatever.
Having a massive pile of money and then complaining about the fact that the government is trying to take X% more than you thought they would is what most of the world calls a high-grade problem.
Also, there ARE investment vehicles that will produce a retirement income that is 100% tax-free, both state and federal. Yes, really, and it’s 100% legal.
There are risks and rewards to this type of investment, but if it’s tax-o-phobia that’s keeping you on the sideline, then there are still options.
Grouse
No one cares more about your retirement than you. Do what you can to prepare for it. Taxes go up and taxes go down, but no one is coming to take your money from you.
This fear of being “punished for saving” idea is an excuse some use for not saving. Looking at it objectively, the chances the government would “take it all away” is exactly zero.
Maybe not fear of being punished, but the disappointment of in 30 years, “our generation did so bad at preparing for retirement, that everybody gets a free handout!” So now I lived frugally the last 30 years while preparing for retirement, while my neighbor who blew money like it grew on a tree, is going to get a retirement handout because he and so many others were too dumb to plan for their own retirement.
Who knows if a scenario like that will happen, but certainly has crossed my mind. Lots of people in my generation scare me…
Every generation has terrible people.
Last May 3M eliminated 2,000 people, half layoffs and half early retirement packages. We jumped on it! Got our house sold and moved up north. We were fortunate enough that Ann had a pension, something that is almost extinct nowadays. She also gets a bridge until ss eligible.
Something that really helped us was paying off our home that we bought in 1988(our only one) in 2001 and then put away what was the mortgage payment every month for almost 20 years. We took the money from the sale of the house and payed off the place up north and still had six figures left. I can’t believe how many people use their home like a credit card! Imo people should strive to pay off their home. Outside of the housing market debacle 12 years ago real estate is a solid investment.
<div class=”d4p-bbt-quote-title”>TheFamousGrouse wrote:</div>
This fear of being “punished for saving” idea is an excuse some use for not saving. Looking at it objectively, the chances the government would “take it all away” is exactly zero.Maybe not fear of being punished, but the disappointment of in 30 years, “our generation did so bad at preparing for retirement, that everybody gets a free handout!” So now I lived frugally the last 30 years while preparing for retirement, while my neighbor who blew money like it grew on a tree, is going to get a retirement handout because he and so many others were too dumb to plan for their own retirement.
Who knows if a scenario like that will happen, but certainly has crossed my mind. Lots of people in my generation scare me…
Another way to think about things…
You’re much more likely to built wealth by planning and doing and it sounds like you are. It’s a long road to build wealth and you need discipline and dedication. I’ve been at it for 25-30 years and feel like I’m at the half way point to where I want to be. Once you start getting there you begin to build momentum and create more opportunities for yourself, more flexibility and more options.
Ask yourself one question: Would you trade positions with the little pig building the straw house? In my case the answer is always no so I don’t spend any time thinking about it. I know I’m in the better position and have the better deal so I just keep pushing the ball forward. It’s far more gratifying to look at your progress and accomplishments than to worry about who might receive a subsidy. That’s a place you don’t want to be.
Wont be long now !!!
I’m a retired soldier with 34 years of service. Got my draft notice at age 20 and enlisted. Spent a year in sunny Vietnam with the 101st Airborne Division. Found out I liked military service and ended up staying in. I was able to retire at age 55. I’m 72 now and you do the math. I’ve been retired for almost 18 years and have enjoyed every minute of it. I have a great life and family – we always lived within our means and have never had any debt. Our family all live close and being a Grandpa has been my proudest job. I am living the american dream and appreciate everything I have. I don’t travel – did enough of that back when I worked. My wife is the brains of the outfit and I am smart enough to appreciate her skills. In the summer I fish 4 to 5 nights a week. Each morning she says – Are you fishing tonight?. I reply – If that is OK with you? I usually go out about 1900 hours (7:00pm) and fish until the Twins game is over or 0100 (1:00am). In the winter we hang around – my wife volunteers. There is always something to keep me busy. Life is good and enjoying it is not very complicated.
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I’m a retired soldier with 34 years of service. Got my draft notice at age 20 and enlisted. Spent a year in sunny Vietnam with the 101st Airborne Division. Found out I liked military service and ended up staying in. I was able to retire at age 55. I’m 72 now and you do the math. I’ve been retired for almost 18 years and have enjoyed every minute of it. I have a great life and family – we always lived within our means and have never had any debt. Our family all live close and being a Grandpa has been my proudest job. I am living the american dream and appreciate everything I have. I don’t travel – did enough of that back when I worked. My wife is the brains of the outfit and I am smart enough to appreciate her skills. In the summer I fish 4 to 5 nights a week. Each morning she says – Are you fishing tonight?. I reply – If that is OK with you? I usually go out about 1900 hours (7:00pm) and fish until the Twins game is over or 0100 (1:00am). In the winter we hang around – my wife volunteers. There is always something to keep me busy. Life is good and enjoying it is not very complicated.
Steve,
Glad you are enjoying it, you deserve it! Thanks for you service!!
Spend more time thinking about tomorrow then regretting yesterday.
From a Big Red One’er to a Screamin’ Eagle..
Thank you for your service Steve.
Here’s my two cents- Retire as soon as possible. I played hard, partied hard, lucked out and met my beautiful wife and raised two boys and am currently in 4th year of retirement. I was lucky enough to retire at 55. Don’t regret it for one second. Best decision I ever made. Haven’t been bored for a second. I could have worked longer and made more money. Why? I know one thing-every year I live after 55 I wouldn’t get healthier. I figure if I am lucky I have about a 20-25 year window to continue to live wide open. I could name example after example of dying too young. Lost a brother to suicide at 58. Just lost a classmate to a heart attack. Teaching friend lost husband at 55. Just learned in last year a dear hunting fishing buddy has ALS. I could go on and on. Retire as soon as you can. TIME is money. I have averaged about 100 days of fishing and 75 days hunting since retirement. I also continue to work part-time about 50-60 days a year. I can’t wait for my wife and buddies to join me in retirement. Life is too short and you never know when the Big Guy comes calling. Happy fishing and hunting. Living the dream.
“Maybe not fear of being punished, but the disappointment of in 30 years, “our generation did so bad at preparing for retirement, that everybody gets a free handout!” So now I lived frugally the last 30 years while preparing for retirement, while my neighbor who blew money like it grew on a tree, is going to get a retirement handout because he and so many others were too dumb to plan for their own retirement. ”
This isn’t so far fetched. Imagine you live modestly, worked hard at two jobs, and paid off your student loans. You did everything right. Right now a bunch of people running for president want to take your tax dollars and eliminate the student loan debt of those people who didn’t do it right. It’s hugely unfair, but a very popular idea with some people.
Personally I doubt I’ll ever get the chance to retire. My best hope is that I can set enough aside to take care of my wife after I tip over.
S.R.
I’ve been retired for almost 18 years and have enjoyed every minute of it.
Ummm I’ve never seen a person work so hard with the MN DNR for the betterment on Minnesota’s catfish population and fishing. I guess if you weren’t retired, you wouldn’t have had the time.
Steve I agree.
Free Health Care
Free Child Care
Free Education
How do they actually think somewhere down the line they won’t have to pay for it?
When they finally start making money and do the taxes that year then realize it’s their time to start paying for the people that want THEIR free stuff, someone please take a picture of their reaction and send it to me.
They will find out they live in Greece. Live beyond your means, give everything to everyone and have your nation go bankrupt!
Right now a bunch of people running for president want to take your tax dollars and eliminate the student loan debt of those people who didn’t do it right. It’s hugely unfair, but a very popular idea with some people.
While nothing is impossible, as with ALL presidential candidate “promises”, they come with a *. The President cannot legislate on his/her own.
So every campaign promise comes with the caveat that the president would sign it IF he/she can get both Houses to pass the legislation, the stars neet to align, the wind needs to be at his/her back, etc, etc, etc. Executive power is not unlimited.
A program of that size/cost wouldn’t just sail through Congress unimpeded and with nobody asking any questions about how it would be paid for.
If you’d like a stealth tax to worry about that’s really going to happen, look at the recent legislation that passed regarding the 401k death tax. It doesn’t impact the 401k “owner”, but there is now an accelerated withdrawal requirement for anyone who inherits another’s 401k (from a deceased parent, spouse, etc), so now the government will take a much larger tax bite of that account in the form of income tax paid by the heir. This new death tax has ALREADY passed and nobody even noticed, even though millions of people will be impacted by it.
I worry very little about what might/could/maybe will happen if candidate x or y gets elected, but there are a LOT of stealth taxes that the politicians currently in office will very likely pass that have far great impact and far greater odds of actually happening.
Grouse
I spoke to our CFP last month about the 401k changes. I am 61, can withdraw from the 401k without tax penalty. Still working so income tax would take a bite. Working on the numbers to withdraw and convert to other investments. There will be some tipping point that makes sense but certainly won’t dramatically accelerate withdrawals while still working.
52 – 48 our retirement is safe for another 4 years.
No one cares more about your retirement than you. Do what you can to prepare for it. Taxes go up and taxes go down, but no one is coming to take your money from you.
Don’t be so sure about that. There are trillions of dollars sitting in both pre and post tax retirement accounts that a few extreme Democratic nominees would like to get ahold. If they believe you have saved too much they may feel the need to re-distribute it for you.
Don’t kid yourself about party affiliation making the difference on the federal government trying to dip into your retirement savings. Democrats and Republicans may prioritize spending differently but every administration since W has run a deficit and has dug deep to pay for their spending priorities. Farm subsidies, military budget, “tax breaks” and all of the other boondoggles require a funding source. jld was too narrow in scope in describing those who are fascinated by your savings. It’s both parties.
Don’t kid yourself about party affiliation making the difference on the federal government trying to dip into your retirement savings. Democrats and Republicans may prioritize spending differently but every administration since W has run a deficit and has dug deep to pay for their spending priorities. Farm subsidies, military budget, “tax breaks” and all of the other boondoggles require a funding source.
So….very….true.
I just got over a personal dilemma. Im not ready to retire, but ready for a change. A friend advised me of a Bait and Tackle shop for sale in Eagle River. Nice place. Lasting clientle from out of town, assume some local business. Nice Place. Large. Ive done my profession for almost 30 years. I still enjoy it to a point, but…… I honestly thought about buying this place and running it. Lots of things to learn… But..My Daughter is 13 years old and I have joint custody. We have a wonderful relationship and communicate openly. She needs me and I need her. I see her regularly. If only this opportunity came 5 years from now… But it did not. So Im staying here for now. But in a few years, look for me in 906 or near there. My girl loves it up there too, but she needs her Momma too. Just a rant, I guess…….
If you have the money it will be for sale when you are ready to buy.
“While nothing is impossible, as with ALL presidential candidate “promises”, they come with a *. The President cannot legislate on his/her own. ”
Grouse, I agree that campaign promises made by politicians are pretty much meaningless. My point was that a lot of people out there have enthusiasm for these kinds of ideas, even when they are monstrously unfair. And that’s dangerous.
S.R.
You guys do realize that we control our own money supply and taxes are at historically low levels. No one ever asks how we pay for military budgets, we just print the money.
Funding SS, Healthcare and Education is entirely within our means, it’s just not a priority for those in power. I started saving early because I don’t see our priorities changing anytime soon unfortunately.
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