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 ...
I have thought this for some time.
Well I have at least that much already invested in Social Security, so I’m not worried.
(Do I really need the tag?)
I could live quite well on 40 /50,000
Today, yes. Not ten years from now.
of course, my one million saved isn’t enough, so im still working...
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.
With my house paid off and my youngest finished with school, I could do well on $40k.
Sorry but its all about the lifestyle one chooses
RE: I could live quite well on 40 /50,000
Well, at least I know one thing — You don’t live in New York.... :)
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.
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.
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!
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.
“All your 401k are belong to us” is the new 1 million.
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.
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.
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.
You will be choosing an extremely limited lifestyle then.
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