This Is What Life Without Retirement Savings Looks Like

[Peter1469]

Yeah, it was up a long toime beofre it crashed in 08 too. Ask older United Airlines employees who their 401ks did when UAL crashed in the late 80s. The only thing that saved the machinists was their pensions.

The market over a 10 year period have always been up.

The government could insure the markets to protect recent retirees. Everyone else will be fine and have potentially 20-30% more than Social Security.

Respond to this.

[DGUtley]

No; if I have a pension, my employers contributed 50% to it... The far right on wall street is trying to kill the pension system so that they can cleave a nickle off of every dime that you contribute to the market.

The world has moved on from a defined benefits system to a defined contribution system. My employer maybe puts in 1/3 for most. 1/7 for me. I have read that the market has averaged 9.6% per year over the last 140 years, including the Great Depression and Great Recession.

When the market crashes, so does your 401. Not so with healthy pension systems and social security.

There are very few healthy defined benefits plans. My 401K has done very well. I have received a far better return than a defined benefits plan does. Social security is theft, as far as I am concerned. No return. No ownership after death. Ripoff.

[jet57]

The market over a 10 year period have always been up.

The government could insure the markets to protect recent retirees. Everyone else will be fine and have potentially 20-30% more than Social Security.

Respond to this.

I did

Yeah, it was up a long time before it crashed in 08 too. Ask older United Airlines employees who their 401ks did when UAL crashed in the late 80s. The only thing that saved the machinists was their pensions.

[Peter1469]

I did

Yeah, it was up a long time before it crashed in 08 too. Ask older United Airlines employees who their 401ks did when UAL crashed in the late 80s. The only thing that saved the machinists was their pensions.

You don't understand my question so you can't answer it.

First, I said the government could insure against market losses for those retirees who get hit with a recession. That should cause you to cease with your weak argument.

Second, the return on market investments dwarf what you are going to get on social security. And if you live until 2035 expect a 35% cut in benefits- so you should take your money as soon as eligible.

I will be 62 in 2032 so if Congress hasn't fixed this issue by then I will just draw early. That will give me 3 years at the low rate before the 35% cuts kicks in. It sucks but it is not relevant. My two retirements and my investments are what matter. Social security will fund my trips to Europe- business class. There is still a lot that I want to see.

[Refugee]

A private pension is ideal, but not everyone is fortunate enough to have one. In the UK we have a government pension scheme. If you work it’s obligatory and a certain amount of your taxes go towards that. The more years you work, the more you get. It’s not a great amount, but enough to keep the wolves away from your door in old age. Coupled with that a universal non-profit health system and we don’t have to worry nearly as much as people in the US.

[Cotton1]

The world has moved on from a defined benefits system to a defined contribution system. My employer maybe puts in 1/3 for most. 1/7 for me. I have read that the market has averaged 9.6% per year over the last 140 years, including the Great Depression and Great Recession.



There are very few healthy defined benefits plans. My 401K has done very well. I have received a far better return than a defined benefits plan does. Social security is theft, as far as I am concerned. No return. No ownership after death. Ripoff.

9.6 is a very substantial return. Bu the "rule of 72" your money doubles every 7 1/2 years

[Cotton1]

When the market crashes, so does your 401. Not so with healthy pension systems and social security.

You can minimize the damage of a crash or correction by doing what is known as " rebalancing". Lets say you are in a 401 but want to be cautious. Instead of allocating 100% of your capital into stocks ypu do say 50%. If and as the market rises your stocks become disproportionate to your cash and equivalents. What to do? You "rebalance". That means as the markets rise you are scaled down in your stocks to where the original 50% allocation remains at 50%. In that manner you gain say 30% and hour stocks are now 65/35 to cash and equivs. If you do not rebalance and the markets stumble you give back your gains. You are not helpless to defend your portfolio.

[Cotton1]

The previous company I worked for went bankrupt from overspending. That left me in my 60s to find another job, and I'm still working.

Ouch. Thats a big sting. Even with an ESOP if the company tanks the holders tank with it.

[Cotton1]

Investing and planning for retirement should be a required course in every high school. I know too many people who have little to no savings and who live beyond their means in this instant-gratification society we live in.

This Christmas, I volunteered at the local Senior Center where we served a free meal to anyone who wanted it. I've noticed in years past -- as I noticed again this year -- that some of the poorest families had kids wearing expensive athletic shoes and playing on their I-Phones. They don't understand why it's wrong to buy those items when they have a hard time putting food on the table. Today's kids -- and even adults -- just don't plan well for the future.

I agree. In my career I would often be talking to a client or prospect. Often times these were highly educated or well to do people. But when it came to finance I would look across the desk at them to a blank stare. Thats when it got tricky. I knew if I got too technical theyd freeze and do nothing. It was a challenge to simplify what is really only a simple game but a game played with numbers. In all honesty you would be shocked to know how often I would have to resort to " ok, 30 days in a month. $40 x 30 is $1200 x 12 is $14,400. This is what I can tax defer for a couple etc etc. Amazing. People spend a third to half their life learning how to make money then have no clue about the money itself

[Peter1469]

Ouch. Thats a big sting. Even with an ESOP if the company tanks the holders tank with it.

I never thought it was a good idea for an employee to have his retirement savings in company stock. I am sure there are exceptions like Apple, but in most cases it is too risky.