Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

When It Comes To Your Retirement, $2 Million May Be The New $1 Million
Business Insider ^ | 04/29/2014 | Libby Kane

Posted on 04/29/2014 9:09:54 AM PDT by SeekAndFind

A million dollars isn't cool. You know what's cool? Two million.

That's according to a recent USA Today article, which claims that having $1 million saved for retirement might not cut it.

"The new $1 million may be $2 million," it says.

Financial professionals explain that $1 million of retirement savings translates to $40,000-$50,000 annually once you've bowed out of the workforce. Sure, someone could live on that, but the question is: could you?

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Society
KEYWORDS: retirement

1 posted on 04/29/2014 9:09:54 AM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

I have thought this for some time.


2 posted on 04/29/2014 9:10:49 AM PDT by LS ('Castles made of sand, fall in the sea . . . eventually.' Hendrix)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Well I have at least that much already invested in Social Security, so I’m not worried.

(Do I really need the tag?)


3 posted on 04/29/2014 9:13:58 AM PDT by henkster
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

I could live quite well on 40 /50,000


4 posted on 04/29/2014 9:16:50 AM PDT by CGASMIA68
[ Post Reply | Private Reply | To 1 | View Replies]

To: CGASMIA68

Today, yes. Not ten years from now.


5 posted on 04/29/2014 9:17:55 AM PDT by saganite (What happens to taglines? Is there a termination date?)
[ Post Reply | Private Reply | To 4 | View Replies]

To: LS

of course, my one million saved isn’t enough, so im still working...


6 posted on 04/29/2014 9:17:58 AM PDT by VAFreedom (maybe i should take a nap before work)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

Yep, that’s the truly evil thing about big govt and inflation. They not only steal from your current and future earnings, but from your life’s savings. A swift kick in the balls for doing the right thing all your life.

Debt ceiling whores are nothing more than common thieves, but on a much larger scale. Madoff was an amateur. They all belong in prison, or hanging from ropes.


7 posted on 04/29/2014 9:18:37 AM PDT by Mich Patriot (Pitch black is the new "tranparent.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: CGASMIA68

With my house paid off and my youngest finished with school, I could do well on $40k.


8 posted on 04/29/2014 9:19:33 AM PDT by Blood of Tyrants (Haven't you lost enough freedoms? Support an end to the WOD now.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: saganite

Sorry but its all about the lifestyle one chooses


9 posted on 04/29/2014 9:19:43 AM PDT by CGASMIA68
[ Post Reply | Private Reply | To 5 | View Replies]

To: CGASMIA68

RE: I could live quite well on 40 /50,000

Well, at least I know one thing — You don’t live in New York.... :)


10 posted on 04/29/2014 9:20:53 AM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind

A big part of the reason why retirees will need so much more capital to live off in their retirement is the way the Federal Reserve has warped the yield curve to bail out the banking sector.

The Japanese learned this the hard way. Mrs. Wantanabe had to turn to speculation in the FX market to make up for their ZIRP.


11 posted on 04/29/2014 9:26:05 AM PDT by NVDave
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Most people, even moderately high income people, will have a very, very hard time saving $2 million for retirement under the current tax policies. At least in the 80s and 90s, you could hope the market raised your investments to a decent level. Now you can’t even hope for that. When we talk about robbing the future for current consumption, this is another example.


12 posted on 04/29/2014 9:30:13 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

People should be taking their potential retirement and reviewing it every year or so.

Take private pensions (some of us still have them.) Take your social security and your 401(k)S.

Add them all up and subtract your expenses. Will you have car payments or mortgage payments? Will you still be spending as much on insurance, or healthcare (we know the answer to THAT!)

I have been doing that every quarter since I started working. To date, my wife and I will be in good shape when we get to 62 years old.

Getting there, 11 years for us, is going to be the problem!


13 posted on 04/29/2014 9:30:39 AM PDT by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Vermont Lt

I guess my point, is that if you have NO OTHER retirment you need far less than $2 million in cash. You need $2 million worth of retirement.

Of course, you need to adjust for inflation and what not.

But if you have been moderately prudent, you will be better off than our parents.

The key is to keep your eye on the ball. You do NOT need that third TV in the house. You do NOT need pizza a second night of the week.


14 posted on 04/29/2014 9:32:39 AM PDT by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: SeekAndFind

“All your 401k are belong to us” is the new 1 million.


15 posted on 04/29/2014 9:35:55 AM PDT by TurboZamboni (Those who make peaceful revolution impossible will make violent revolution inevitable.-JFK)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
USA Today article, which claims that having $1 million saved for retirement might not cut it.
There are so many life-style choices that affect a quality retirement that make this statement just total BS.
When I was still working (retired 2007), I kept on hearing that I needed 80% of my paycheck to "survive" retirement.
Well, that turned out to be BS too. Probably the biggest single "success" factor for me was paying off my mortgage 10 years before retiring.
16 posted on 04/29/2014 9:45:44 AM PDT by oh8eleven (RVN '67-'68)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Blood of Tyrants

Exactly. If you have no debt, and if you are supplementing your retirement income from savings with social security, you can live quite nicely on $1M.


17 posted on 04/29/2014 9:48:45 AM PDT by Pollster1 ("Shall not be infringed" is unambiguous.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: SeekAndFind

I’m not clear on whether the thrust of the article is (1) withdrawing $40-50,000 per year out of the corpus of the one or two million dollar nest egg; or (2) living off the dividends/interest from the principal amount, while keeping the principal essentially intact for the retiree’ heirs.


18 posted on 04/29/2014 9:59:04 AM PDT by Salvey
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Those of us who were unfortunate enough to work in the private sector all our lives will have to work til we die. We’ll be waiting tables for all the public sector retirees who are living high on the hog.


19 posted on 04/29/2014 10:03:16 AM PDT by Cementjungle
[ Post Reply | Private Reply | To 1 | View Replies]

To: CGASMIA68

You will be choosing an extremely limited lifestyle then.


20 posted on 04/29/2014 10:10:29 AM PDT by saganite (What happens to taglines? Is there a termination date?)
[ Post Reply | Private Reply | To 9 | View Replies]

To: SeekAndFind

I am about to retire and think I have planned fairly well ... for things I can control (mortgage - get it paid; car - don’t need a new one; expenses - don’t need all the movie channels or to eat out all the time; etc.).

But, what concerns me are the things I can’t control (stock market - not looking rosy in the near future; cost of living - the price of everything is increasing; tax rate - it’s bound to go up; Medicare coverage - it’s bound to decrease; Medicare Supplement cost - it’s bound to go up; etc.).

And, what’s most frustrating is that this president seems to be doing everything in his power to try to make my retirement as difficult as possible. What he doesn’t know is that my happiness doesn’t, in anyway, depend on him - it depends on Him.


21 posted on 04/29/2014 10:21:59 AM PDT by jda ("Righteousness exalts a nation . . .")
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
A million dollars isn't cool. You know what's cool? Two million.


22 posted on 04/29/2014 10:28:51 AM PDT by JRios1968 (I'm guttery and trashy, with a hint of lemon. - Laz)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Salvey

They are talking about withdrawing 40-50k per year and adjusting the amount annually for inflation. This strategy gives a fairly high probability of allowing these kinds of withdrawals for 30+ years.

Will this provide for an adequate retirement? How much do you plan to spend? Do you have other sources of income? You planning on living to 96?


23 posted on 04/29/2014 10:37:21 AM PDT by DugwayDuke
[ Post Reply | Private Reply | To 18 | View Replies]

To: SeekAndFind

How can anyone survive on 40,000 or 50,000 a year? I’m wondering how I’m going to scrape by on over twice that amount. And that’s with a paid off house and no debt. The way prices are going up on everything I worry about my retirement years, which will be starting up on June 1.


24 posted on 04/29/2014 10:37:58 AM PDT by AlaskaErik (I served and protected my country for 31 years. Progressives spent that time trying to destroy it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: saganite

Your opinion


25 posted on 04/29/2014 10:38:06 AM PDT by CGASMIA68
[ Post Reply | Private Reply | To 20 | View Replies]

To: SeekAndFind

I retired at 60. We had it all planned out to do so and live easily on our savings, soc sec and pensions.

Living expenses are as we expected.

But we did not anticipate what ObamaCare would do to insurance and medical costs before it actually kicked in this year (60% increases in premiums and deductable/co-pays over 2 years).

What we had saved and planned may get well zapped before we his 65.


26 posted on 04/29/2014 10:42:45 AM PDT by llevrok (F the government)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Thanks Obamanomics. You’re the greatest.

Who’s going to have retirement accounts anyway? Some progressive will see that big pile of money and confiscate it some day. For the children of course.


27 posted on 04/29/2014 11:01:47 AM PDT by Organic Panic
[ Post Reply | Private Reply | To 1 | View Replies]

To: Vermont Lt

but, but, some people today think the 5th TV is a necessity. Along with a cable package including HBO, Showtime, and God knows what other pay cable channels.

And some people eat out 4 nigghts a week, necessity of life for some.

And you gotta have a new leased car every 2 years.

Of coruse I’m being sarcastic.


28 posted on 04/29/2014 11:02:38 AM PDT by Dilbert San Diego (Im)
[ Post Reply | Private Reply | To 14 | View Replies]

To: AlaskaErik
Plan, and live low, I had the same angst, if you are debt free, that should be easy.
29 posted on 04/29/2014 11:13:35 AM PDT by Little Bill (EVICT Queen Jean)
[ Post Reply | Private Reply | To 24 | View Replies]

To: SeekAndFind

How much will I need to live like King Barry?


30 posted on 04/29/2014 11:15:44 AM PDT by Fresh Wind (The last remnants of the Old Republic have been swept away.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dilbert San Diego

You left out, the newest and most expensive smart phone and tablet to go with it. One for each member of the family including the failure to launch ones. The monthly connection charges would feed most retired couples. Heaven for bid using a good cell phone from Trax or Walmart with no monthly charges except what you use.

Since you aren’t working now and not stopping at Starbucks before and after work, you can go there with you new tablet and use their WiFi while sipping on several $5 coffees all afternoon and a couple of sweet deserts.

A two week cruise with a real state room each year.

Taking the grandkids and their parents to Disney World or on that cruise with you.

Adding an a 50 K outside kitchen, ceramic charcoal cooker and a brick pizza oven, that you might use twice in your lifetime. Of course the new kitchen sits on a 30K Redwood deck and granite patio.

The wife redoes her kitchen for 75 k, and doesn’t really cook anymore. If you don’t eat out, you buy take out on the way home from your tiring afternoon at Starbucks.

A new 50K SUV even though the only off road you go on is onto your 25K new driveway with solar lights and special security.

You now belong to a closed gate Country Club with monthly dues over 2K just to belong.

Last but not least your cash charity donations are enough to even document on your yearly IRS form.

Then, you write letters to the editor about the hardships of retirement and how America has gone to hell.


31 posted on 04/29/2014 12:49:08 PM PDT by Grampa Dave ( Herr Obama cannot divert resources from his war on Americans!)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Grampa Dave

You hit lots of nails on their heads !! Thanks.


32 posted on 04/29/2014 1:32:36 PM PDT by Dilbert San Diego (Im)
[ Post Reply | Private Reply | To 31 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson