Retirement

[Nesikep]

 

[greybeard]

Where does your money go when you die?

My personal money goes to whomever I will it to (minus what the taxman will take).
My ss payments will go 1/2 to my wife and the rest will stay in the SS program for 'someone' else's benefit just as your and my monthly auto liability insurance payments will assuming we don't have any auto accidents. (I have paid for liability insurance since 1967 and have never had an auto accident where a claim was filed against my auto liability insurance)

I don't think SS is anywhere near the best way for a person to ensure they will have retirement income,

I look at SS as more like a whole life insurance policy than a retirement program.
My twin brother paid into the SS system from 1967 thru 2017 and received SS benefits for less than 12 months (his wife will continue to draw 1/2 of what he was receiving until she dies)

 

[Caustic Burno]

Social Security is an insurance program not a retirement. If you get killed or die with minor children it pays until they graduates High school along with widows benefit.

 

[Brute 23]

My personal money goes to whom will it to (minus what the taxman will take).
My ss payments will go 1/2 to my wife and the rest will stay in the SS program for 'someone' else's benefit just as your and my monthly auto liability insurance payments will assuming we don't have any auto accidents. (I have paid for liability insurance since 1967 and have never had an auto accident where a claim was filed against my auto liability insurance)



I look at SS as more like a whole life insurance policy than a retirement program.
My twin brother paid into the SS system from 1967 thru 2017 and received SS benefits for less than 12 months (his wife will continue to draw 1/2 of what he was receiving until she dies)

I meant "your money" as in all the social security contributors... not your personal money.

It is more of an insurance policy no doubt. That is why some get more than they put in and some get less.

There are so many bad things in it that need to be updated but every generation says screw it, it's too late for the changes to help me, so they dont mess with it.

Yall know what forced, "social insurance" is right? It's pure socialism. That's why the govt pitches it as a retirement plan. That doesnt sound near as bad right.

 

[D2Cat]

My wife's grandmother worked as the county treasurer. I remember her telling how the employees did not have the money to pay SS when it began in 1935. It was like 10 cents a week. The county gave each employee a raise equal to the amount that was going to be taken from their check. Her husband had died and she had three children. I don't know how old she was at that time, but I think around 25. She lived to be 96.

I think she received more than she paid in as everyone in that era did.

 

[504RP]

Does personal finance take a class in school? It what's taught there is not applied it's worthless.

It all goes back to the parents. Show them how to do things (work) when they are very young. They could pick up sticks in the yard, rake leaves, or just help doing whatever the parent is doing. Give them a reward for the effort (some money) and show them where the money needs to go (save, give, spend).

It's not complicated. When your outgo exceeds your income your upkeep becomes your downfall!

Well, maybe it does take a class in school, because not many parents understand what is necessary to teach them and have no personal experience!!

Because many adults do not understand the rule of 72, probably never heard of it, they don't start saving and have no concept of what it will become. So, they have no foundation to teach to anyone. Where did that bridge fall into the river?

I have never heard of the rule 72 ? What is it ?

 

[D2Cat]

Take the interest rate you are receiving and divide that into 72 and that is how long it takes to double your money (in years).

Example: You earn 10% on your savings. 72 divided by 10 equals 7.2 years to double. So at the local bank you may be getting one percent. 72 divided by 1 equals 72 years for you money to double.

Here's a link that may help. https://www.kiplinger.com/article/s...-72-shows-investors-power-of-compounding.html

 

[504RP]

You don't have to wait until 62,65, or 67.5 to retire. Don't listen to the government they want you to work until your dead. That being said I'm sure I'll work until I'm dead. Lol

Correct me if i am wrong and probably am but, all retirement is that when someone regardless of their age decides to for the most part quit work and live off of what money they have saved like ss benifit, 401k or pension plans etc....,

So unless you become disabled the earliest you could sigh up for ss is 62. Which i guess alot people count on when they are considering retirement.

Then health care is something else alot of people have to take into consideration when they decide to retire. The majority of people look to Medicare to cover that. I am not sure at what age you have to be eligible for Medicare coverage 65, 67 something like that ? Without some type of health care your at risk of losing everything you have at the time you end up in a hospital.

Had a friend who retired at 61 and thought he would be ok until he turned 62 so that he could sign up for ss. Had a stroke sitting in his recliner before he turned 62 ( Medicare seems like kicks in at 62 ) was in the hospital and rehab until he turned 62.

His medical bills were way more than he had in savings, Had to mortgage his home that was paid for in order to avoid losing his home.

What i am saying is I don't think you can retire whenever you want to. If you want to keep your home and some way to pay the bills untill you die.

I use Edward Jones, now with that said they all sell the same products. The search is more for the reputable advisers.
Great guy manages several family members and has done a fantastic job for all.

Edward Jones is who alot of the guys I know who have retired use.

They all seem to be real happy with them.

 

[504RP]

I couldn't sleep with that amount in my checking account.

I don't understand what your saying. Are you meaning you don't keep money in banks, don't trust a bank with money ?

 

[504RP]

From a Business Insider article.
Millennials 25-40 are projected to have 18% lower standard of living than their parents.

Typical 40 yr old has $21,000 less in net assets and $16,000 more in debt than the average baby boomer had at age 40. In addition on average,
in adjusted dollars, they earn 1.4% less than what boomers earned at same age.

Perhaps the parents of baby boomers did a better job of instilling the value of a dollar in their children than what boomers have done as parents for their children.

Millennials amaze me !!! Most that I know a little about seems to think that both good jobs and money grow on tree's !!!

They don't want to start at the bottom and work their way up in a job. Lol !!! I guess starting at the bottom is a waste of time in their point of veiw.

They want to start at the top and regardless of the opportunity given to them. And have absolutely no problem throwing away opportunities that will probably never come their way again.

 

[D2Cat]

Millennials amaze me !!! Most that I know a little about seems to think that both good jobs and money grow on tree's !!!

They don't want to start at the bottom and work their way up in a job. Lol !!! I guess starting at the bottom is a waste of time in their point of veiw.

They want to start at the top and regardless of the opportunity given to them. And have absolutely no problem throwing away opportunities that will probably never come their way again.

That is correct with the exception the trees need watered..... with sweat for them to grow! That seems to be what frustrates them.

 

[504RP]

That is correct with the exception the trees need watered..... with sweat for them to grow! That seems to be what frustrates them.

Lol !!! I thought my generation was unique but, my generation doesn't hold a candle to the Millennial generation.

 

[504RP]

I have medicare and enough to pay any deductibles that occur. Been thinking about this retiring thread for a while. Been in the stock market since 1981. Been through the ups and downs. I have spent some of the profits along the way. Really have been giving some thought to it in the last few days. Turned 79 right recently and thought about 90 years old, just 11 years to there if I live that long. I could sell all of the land at what the county appraisal says it is worth and all of the stock and go cash with it all. Lots of capital gains in it land that we have owned for more than 25 years. Any way if I went cash there would be enough left over after long term capital gains tax of 28% to get by. Not ever having any gains such as interest on the cash account there would be in the neighborhood of about $120000 to spend each year not counting any pensions or SS. Yep will be paying taxes for a long time. Not a lot of things two old people can find to spend that much money on. The $120000 would not be taxed as it is not income. Only income tax owed would be on the pensions and SS income which would not be much. Would have a home after all is said and done because the home is not on any of the land.

Dad no disrespect intended. But just to correct your statement " Not a lot of things two old people can find to spend that much money on ." Don't you and mom think it's WAY past time the two of you should come meet me, your son whom you have never met !!! I might have let you and mom down as being successful when it came to making money. But I guarantee the both of you I flat know how to spend it having a good time !!! All you and mom have to do is sign everything over to me and hold on for the ride !!!

 

[Lee VanRoss]

504RP> Bite your tongue, you are starting to sound like Stanley....

 

[Nesikep]

Millennials amaze me !!! Most that I know a little about seems to think that both good jobs and money grow on tree's !!!

They don't want to start at the bottom and work their way up in a job. Lol !!! I guess starting at the bottom is a waste of time in their point of veiw.

They want to start at the top and regardless of the opportunity given to them. And have absolutely no problem throwing away opportunities that will probably never come their way again.

While a lot of that is certainly true, remember that a lot of the generation that's b!tching about them not having any motivation had $.15/gallon gas and a house cost $10K

The whole financial system is rigged now so that you're stupid if you save money, because the inflation rate is going to eat up the value of that money far faster than you can put it in the pot.. Friends of mine bought a house for $400K in 2012 and sold it in 2016 for $880K (no improvements done to the place)

So unless you have a really good job already, you're either stupid for taking on too much debt or stupid for not buying property

 

[D2Cat]

The folks that were paying $.15/gallon gas and a house cost $10K were also in the time frame when a union carpenter earned $3 an hour!

 

[504RP]

504RP> Bite your tongue, you are starting to sound like Stanley....

I don't know who Stanley is ! But I love mom and dad and am diffinately worried about both of them when my poor dad goes to making comments like " what is two old people going to do with all that money ! "

Why I just get chills thinking about that comment ! As soon as dad wires me some of that dirty old money that's causing him and mom all of this grief.

I plan on charting a private jet, picking the both of them up and off to Vegas we go !!! Getting the both of them a few thousand dollars worth of chips, set both of them down in front of $5 and $10 one armed bandits to get some physical therapy going !!! Get their blood circulating ASAP !!!

If that don't get their blood circulating. When dad sees how much money we spent just in one night in Vegas !!!

Well ??? I guarantee you he will be patting me on the shoulder by the end of the week and saying "son !!! You done well !!! Because i don't have to worry no more about what me and your Mother is going to
do with money ever again !!!

 

[504RP]

Most definitely you learn what you don't know.
There are a lot of pitfalls with huge tax implications out there for not knowing.
I have been retired 14 years and I still check with mine before making large investments.
Don't just talk with one, I interviewed several before I homesteaded.

Everyone that I know who has talked to a financial advisor said they didn't understand what the advisor was explaining to them. Which i have only spoke with 3 or 4 people who has told me that. Is it really that hard to comprehend what a financial advisor talks to you about ? How well versed does one have to be to understand a financial advisor ?

 

[Brute 23]

Most people arent willing to invest any time to learn about their finances or taxes or any thing. They just want "the guy" to handle it.

 

[Buck Randall]

The folks that were paying $.15/gallon gas and a house cost $10K were also in the time frame when a union carpenter earned $3 an hour!

You're only reinforcing Nesi's point. Today a gallon of gas costs $3, and a house costs $200K. Those costs have increased twentyfold, but the union carpenter's salary did not.

For young people starting out or older folks with very little savings, things are a lot harder than they used to be. Their paycheck simply doesn't go as far. People work hard when they are pursuing an achievable goal, but if they can't see a path to success, what is there to work toward?