I remember as a Witness, few took part in retirement plans. I got out young though, and try. Although, like most, I think I am screwed with retirement. Yes, I have a 401k, as does my spouse. I put money in an IRA, etc. The thing is, cost of living is going up up and up. By the time I reach retirement and live beyond it. There is just no way the average income American can save enough. Especially when most people will live in to their late 80's. If social security is gone, I personally would gladly take aim at a couple politians for wasting my money on government programs that were a waste of money. At least prison would have food and a place to live! In all seriousness though, does anyone out there really have a realistic savings plan for retirement. They say, you need 1.5 million by 67 to retire at a comfortable remaining of your life-span. Good luck!
Retirement
by free2beme 3 Replies latest jw friends
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Scully
I know some people are planning to get a reverse mortgage, but personally, I think that's one of the worst things you can do if you own your home outright. Don't think the financial institutions haven't figured out all the angles to make it to YOUR benefit over THEIRS.
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Simon
I think the "you must have $1 million" is a bad message because for many people it's unattainable.
Much better is for people to save what they can in ways that don't have charges creaming off growth.
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lovelylil
I was a business and finance major in college. The thing is that retirement plans are contingent on the person and the lifestyle they want to live during thier retirement. I don't pay attention to the financial planners who say you must have 2 mil or 5 mil or whatever. Some people are more frugal then others and can live on less, some cannot. Here is the best advice I can give you that I also follow myself;
Aim to Save at least 10 -20 % of your income. If you can only afford 2%, start with that and slowly increase it as you are able. Put an actual % and not an amount down for your plan. That way if you get even a small raise, your amount of contribution will increase too. Especially put a % if you are an hourly employee who earns overtime and holiday pay.
Pay off your primary residence FAST! Try to have your home if you own one paid by retirement as this will be one of your largest income drains if you still have to pay a mortgage
If possible downsize your home to a smaller one this means less maintence, heating costs, etc.
Get Long Term Care Insurance while you are younger. The costs goes up tremedously with age. Try to get this by 50 if you can. Another big drain on your income in retirement can be medical bills, nursing home, rehab costs etc. Get a comprehensive package and it will cover nursing home, assisted living, or private home care. I know about these because I work in healthcare. They are fantastic ways to keep assets safe in time of medical crisis.
Put your home in a TRUST for your kids before you are too old. In most states, if your home is in the trust at least 5 years and you need to go into a Nursing Home, without long term care insurance, the nursing home cannot force you to sell your home to pay for your residence in their facility. In other words, the kids get to keep the house.
Get rid of ALL bad debt, i.e. credit cards! You want to live cash on the barrel in retirement if at all possible.
ALWAYS live BELOW your means and not above them. My hubby and I were able to buy a home when our friends making double our income could not afford it. WHY? we always lived below our means (and still do), thus were never really in debt our entire 20 years of marriage. We were both dirt poor growing up and learned the value of $$$ fast. We bought a very small home we could afford, have lived here 10 years and next year will sell to buy our dream home we always wanted. Our friends bought their dream homes first, could not afford it and it was quickly forclosed on. Start small and then grow big that is my motto.
Peace, Lilly