entitlements, dude... there are a lot- A LOT- of people with $8,000+ in monthly entitlement checks (and sometimes only $2,000 in bank accounts).... you know it is close to the end when the military and government are by far the best jobs/careers in the empire.
I can agree with that. But my point is that the myth of comfortable retirement, or rather, the attainment of comfortable retirement through working hard and saving cash is still a myth for most earners out there. So, it's the 1-2%-ers that can actually make it happen and the guys on the entitlement programs. Everyone in the middle (read: an overwhelming majority) gets shafted. My problem is with this myth being shoved down our throats on every corner and turn of the media. Great propaganda for making the gerbils spin theirs wheels ever faster. /Wulfrede
Except for every 8 years when I purchase a new car, I live comfortably on a tad less than 40K a year? And I pretty much travel wherever for hiking as that is my passion and I spend as I please. The key (besides being single) is that I am 100% debt free (no mortgage, rent, or anything) I also live in the south in a small Mayberry type town. That helps. Still, I think if you are over 65, $2,000,000 should be the goal. I am 67.
Assuming you are living solely off your retirement and not any transfer payments, you are likely one of a few examples who are able to do this and, more importantly, want to do it this way. This also implies that you likely have accumulated over $1M to give you an annual yield of just under $40K. Or, you have been taking on more principal risk (so your situation actually can suddenly change) to generate that return with a lesser amount. If my assumptions are on the right track, I am curious how you were able to build your savings. Are you a special case where you've had no expenses for raising kids, their education, past mortgages, etc.? Maybe a high earner? I don't mean to be rude or unduly inquisitive, but my belief is that an overwhelming majority of working Americans will not be able to achieve this unless they are in some special position allowing the "extra" savings to be socked away. Further, I find it hard to believe that you can spend "as you please" with an under $40K income. And, while my conservative side says "to each his own", I'll posit that many who plan to retire look forward to a retirement life offering more diversity and choices than one can living on $40K in a small town. So, it sounds like quite a feat to come up with the right amount of retirement funds (most people will have families, buy a house, take on a sizable loan, put kids through college, help them get married, etc. - normal life/family stuff) just so their retirement years can be relegated to a fairly narrow sort of existence that likely wouldn't really echo what they were used to. After all, once one retires, isn't that the time to experience things, new things, have fun, meet new people, go places, visit with children and their children, enjoy theater, opera, good food and company, etc.? It's what life is made of. I don't mean to judge your choices, not at, all. After all, you are able to live debt and obligation free and you seem content. As I said, quite a feat. I am only going with what an average retiree who's had a certain lifestyle would have a vision of, after all that hard work they've put in. And, it looks to me that after doing all that, this average retiree won't have a chance to save even a million, which even then can only promise a mere shadow of life they thought they were going to live. I truly appreciate your input. /Wulfrede
not trying to jack this thread but: http://www.amazon.com/How-Trade-Living-Gary-Smith/dp/0471355143/ref=sr_1_1?ie=UTF8&qid=1415589829&sr=8-1&keywords=how I trade for a living (007Arb) I read this book in the late 90's in one sitting at a Borders or B&N. I was impressed.... just got a copy in the mail to re-read. .....looking into select real estate as a possible recurring retirement income stream but still at least two decades away from retirement.
Wulfrede, you are very correct about one thing and that is having a family and putting kids through college etc. I did have a daughter though through a relationship and did support her. The only point I disagree with you on is the >>>I'll posit that many who plan to retire look forward to a retirement life offering more diversity and choices than one can living on $40K in a small town<<< I have lived all over the country in my time - Louisville, Dayton, Cleveland, Rochester, Santa Monica, Reno (many, many years) Boone, NC (beautiful place terrible winters) but living here in Mayberry near the KY/TN border has by far been the most enjoyable. Going on 18 years now and not a day goes by I don't thank God for giving me this place (and my health) It was a fluke how I ended up here. I spend a lot of time in Asheville during the summers. It's a real happening place and a retirement mecca, especially for seniors like me who can still hike up a storm. I've thought about buying a second home there. But the frugal side of me might have a problem worrying about two homes. My problem is I have to start spending more of my money.. A nice problem to have I guess, but on what? Besides, good health takes precedence over lots of money as we age.
m1nt, thanks but long ago quit trying to sell books. In some respects regret the whole experience. Royalty income this year was a grand total of $118. Last year it was something like $104. I tell traders buy a used copy for almost nothing. I get nothing for used copies. I've always been anti-vendor anyway. Boy, some of the stories I could tell you about some of the so-called trading gurus would make your hair curl.
Regarding health, I couldn't agree more. Which is a big reason I think retirement in general is not only a myth for many, but is something that should not be viewed as necessary. Staying on your toes keeps you vibrant. After all, you are, in fact, a special case (I hadn't realized you were an accredited trader) and it sounds that you could change your income situation if you decided you wanted to. In a way, you do have something that produces for you. Average Americans are not in that position and are being guided ever further away from attaining it by being told to work harder in order to save and invest into the markets for the bright future of their retirement, instead of investing in their own selves. They should be told instead that the best 401K plans they can find are in their own heads. They should use them wisely. Best regards, /Wulfrede