$300,000 should be in the bank to cover retirement expenses

[Omaha Steve]

Full short article: http://www.laborradio.org/node/3852



$300,000 should be in the bank to cover retirement expenses - 08/01/2006

By Jesse Russell

Nearly $300,000 is the expected amount a couple retiring
today would need to cover premiums for health insurance
and out-of-pocket expenses. That's according to a study by
the Employee Benefit Research Institute. With the average
life expectancy in the US in the mid 80s, $295,000 would be
needed. and the longer they live beyond that, the more the
couple will need will need - upwards of $550,000 for a couple
living to the age of 95. Those numbers are in addition to
having health insurance. Paul Fronstin authored the report:

[Skink]

1. I haven't made half that in my life and I've been working 20 years.

[Warpy]

8. I love people who tell me I should have saved $2000 a year

from the time I was in my 20s. When I was 20, my yearly income was $2,600/year. It was just above minimum wage and barely enough to live on if I didn't get sick.

It beats me how I could have lived on $600. Most of that went to taxes, anyway.

[electron_blue]

47. you paid taxes on $2600/year? How?

[Warpy]

50. FICA, withholding and sales tax

That's how.

[electron_blue]

52. Okay, I forgot about sales tax & fica. I still don't see how that took

'most of it'. For 6 years I earned $6000 - $10,000/year and paid virtually no taxes due to the single deduction. For the years I earned less than 8,000/year I paid nothing (except sales tax) due to the exemptions and deductions.

[Warpy]

53. Index to inflation

and go back to those old tax tables.

You were fortunate. Older boomers were not.

[electron_blue]

54. Yeah, I was talking about 20 years ago, perhaps you meant 40+ years ago?

[conflictgirl]

59. I know, I hate that

When I first got married, my mother-in-law told us we should be saving half of our income toward retirement. That first year we were married, our COMBINED income was $13,000. (This was only 12 years ago, BTW.) How we could have saved half of that, I have no idea.

Seeing as how my husband has only been employed for two months out of this year so far, I think the odds of us saving anything this year are going to be close to nil. I'm just hoping to get through this year without incurring a lot of extra debt. Advice to save $2000 a year presumes an income where there even IS that much money to spare.

[Megahurtz]

66. Amazing how all of these people with their "Bright Ideas"

for everyone to "save, save, save!" for that "retirement nest egg"
seem to not have a fucking clue that there is no extra money to save
let alone even enough to live on!

Save HALF of your income??? That's a fucking laugh!:rofl:

[rubberducky]

2. Looks like I`ll work until I drop!

Happy retirement!!

[yy4me]

35. No such thing, I tried it,doesn't work, I'm back to work,

trying to get by on $559.00 a month Social Security plus my piddly wage at work. Seems that at my age, all the living wage jobs are out of my reach. Seems I lack both the skills and youth required to do anything that will make much of a difference. Don't get old, it stinks but I guess it beats the alternative. Work 'til you drop. The plans we had for years to "see the world when we retire" are down the tubes. Oh well, Halliburton is making money anyway.

[RebelOne]

36. Yup, looks like I will be working until I drop.

I'm 67, collecting social security and working full-time. Even though my SS check is $1,200 a month, I can't live on that alone. I have a 401K and an IRA and I'm trying to get more money into those so that I can retire before I die.

[CTyankee]

112. I get a good amount from SS but my mother's estate

really saves me.I draw an income of about $1250 a month from her estate. I also work part time so I can indulge in some travel each year.

I share expenses with my spouse who still works full time and whose medical benefits cover me for about $75 a month (I pay that instead of Medicare part B or D because I get dental and drug benefits that are better than what Medicare offers).

I don't have a bad life, but I know that when my spouse retires I won't have the medical coverage and I will have to go onto the awful Medicare coverage. Hopefully, that will have changed by then!

[RebelOne]

115. That is another reason I continue to work full time.

The medical benefits are fantastic. I have medical, dental, eye care and prescription coverage, plus life insurance for about $96 per month.

[evlbstrd]

3. Oh, fuck.

I need a big lottery win.

[teach1st]

4. Then I'm screwed N/T

[mom cat]

13. You are not alone.

[katinmn]

5. Unreal. I wonder how many American seniors have that much

tucked away in their portfolios.

[coalition_unwilling]

58. When a single family home (and its equity) is included as part

of a total portfolio, I would suspect that many Americans do have that much. But I really don't know.

[pitohui]

70. only in california

there are large areas of the country where there is no way the family home is worth $300,000 -- and keep in mind that is just what they recommend for HEALTH CARE

you can't sell the house if you still need shelter, and my guess is that MOST seniors also continue to eat and wear clothes!

[Journeyman]

6. "Those numbers are in addition to having health insurance." . . .

And that's all you need to know how utterly screwed we are all going to be in our "golden years."

[marmar]

7. Universal single payer...

It's time to end America's health care racketeering system.

[pokercat999]

32. US Health Care Service. Based on a "military style"

service, could provide free health care to all. Instead of having military bases overseas we could have hospitals. Nationalize all insurance including, auto and home insurance; health insurance will no longer be needed. Let's put just a little socialism in our society. Maybe nationalize energy and pharmaceuticals too.

[Bozita]

9. That's 28 YEARS of GROSS pay for a minimum wage worker

58,252.47 hours of work divided by 2080 work hrs/year equals 28.005 years of GROSS pay needed to cover retirement.

[KatyaR]

15. So I guess if you save one-half of EVERY paycheck for 56 years,

you might have a chance at retirement? Who the hell do they think they're kidding? Why don't we just have "retirement by lottery"--if you win, you get to retire; if not, too bad.

Wait, I think I'm on to something here . . . .

We're all going to be living under an overpass on a turnpike somewhere in our "golden years." I already have mine picked out.

[mike923]

39. A course in the time value of money would be helpful back here.

[pitohui]

106. a myth pushed by investment firms

the time value of money is obviously not as advertised, as you'll find out after about 20 years of working and investing well above the average -- when you find you still don't have nearly what is needed by their calculations

[Iowa]

64. That's not how it works...

So I guess if you save one-half of EVERY paycheck for 56 years, you might have a chance at retirement?

I'm not replying specifically to your post, but to the frequent pessimism I see on DU. It is clear that the future looks very grim to many here, especially when it comes to personal finance. While there are certainly trends that are troublesome, nobody knows what the future will bring, and there ARE things one can do to prepare for a decent retirement. There is hope.

To any of you younger folks who might stumble across this thread... It's important to recognize that most who are relatively young cannot afford to save - period. Most in their 20s and 30s are just getting started in a career and earning toward the low end. At the same time, they're buying all the "stuff" needed to build a household, perhaps having kids, and just barely getting by. That's to be expected. Don't sweat it. My first full-time job out of college paid $5,000 per year! My net-worth was negative or zero until I was almost 40. By the time I was in my early 50's, I had triple the assets referenced in the OP. I never earned $50,000 per - always less. My wife never earned $25,000 per year - always less. Together we earned an average of around $33,000 per year - gross - over 34 years dating back to age 18, before we even met. Our incomes were in the range of what a school-teacher and a secretary would earn. We were never big money makers.

If you don't take life-cycles into account, and if you don't consider the power of saving/investing/compounding, you'll probably feel hopeless. I know I did. I just didn't get the big picture. It wasn't until I was approaching 40 that I started looking for an escape.

For some among us our economy is very grim (people with disabilities, unskilled workers, minimum wage workers, etc.), and the country needs a much better safety net. But for many here the future is much brighter than it may appear to be. So... think positively, reject consumerism to the extent possible, focus on relationships, save whatever you can (when you can), learn how to invest, and enjoy life at every opportunity.

[RawMaterials]

82. and own a business

that how you make money, its all who you know

[llmart]

96. You are 100% correct .....

and your experience mirrors that of my husband and me. We couldn't save much when we were in our 20's and 30's but once we reached our 40's started putting some away and put more and more away each year. The best point is to ask yourself if what you are buying is really all that necessary. You'll find that most of it isn't. This doesn't mean you have to live like a monk. But learn to live without the gewgaws and crap that most people buy nowadays.

[Lasher]

99. That's the way it worked out for me too.

We started socking it away quite a bit when we reached our 40s. Many of my peers were tooling around in new Corvettes and were taking multiple vacations to the beach every year. Remember the car from the movie, Uncle Buck? That's pretty much what I drove. We enjoyed our summers around home, but 'store bought' vacations were rare. And some of those peers seemed to have lots of time on their hands in those days, while I was leaving for work before daylight and getting home long after dark. I often had to endure extended business trips away from my family.

I worked very hard, maybe too hard, for the same company for 33 years. I managed to work my way up from entry level to middle management, and was knocking down six figures before I retired. I have to admit, it took luck to get there but it would not have come without a lot of effort.

I retired 2.5 years ago, just before I turned 55. My wife and I are relatively secure, but that would not be so if our needs were not so simple. I never did get a new Corvette, but I just bought a new pickup. And those peers I mentioned? They can't afford shiny new cars any more, or expensive vacations. They say they'll have to work till they drop dead, and remind me how lucky I am.

But I worry about younger folks. I could not have retired without a Defined Benefits Pension, and already these plans are a thing of the past - being replaced, at best, with 401(k) savings plans. BTW, I had a 401(k) and a Roth IRA in addition to my DBP plan. I have retiree medical insurance, and I currently pay no primium (but I do have copays), but that's also being eliminated for future retirees. And with Republicans' obsession about elimination of Social Security, Medicare, Medicaid, and all other New Deal programs, things could get even more grim for current & future retirees.

What I'm trying to say is, it was never easy but we Boomers at least had a chance. It's different now for the twenty- to forty-somethings, but we could make things better. For one thing, it would be very helpful to have universal healthcare - single provider, no premiums, and no copays.

[llmart]

104. I can't feel too much sympathy for the 20's and 30's somethings...

because when I go to get my hair cut once every 6 weeks I see these young marrieds in there getting the "works" and walking out with a $300 bill! Why are all these young girls so obsessed with their toenails and fingernails and eyebrows these days?

Another boomer woman I work with said to me "what ever happened to plucking your own eyebrows?"

[Lasher]

105. Now now, let's not lump them all together

When I was in my 20s there were those who had to have it all right now, as I said previously. There's people like that today. On the other hand, there were (and are) those who are willing to work and sacrifice.

I have little empathy for the former, but quite a bit for the latter. Let's be fair with these young whippersnappers and maybe some of them will do the same for us Boomers.

I don't always follow my own advice perfectly in this respect, but I'm trying.

[idgiehkt]

114. LOL

You are so right about that. It kills me what women are expected to buy these days in the way of salon services. It's gotten ridiculous. I really don't know how this mess got sold to the public, but I think it's a racket. What a shame that all that money could be being saved or put on a down payment for a house.

[Bill McBlueState]

116. did you have tens of thousands of dollars in student loans?

One thing that's different these days is that a college education costs an order of magnitude more than it did forty years ago. Even students graduating from state colleges often have more than $10,000 in student loans to pay off. That makes it almost impossible to get in the black before you start a family. Or have to pay for your kids' schooling.

[Megahurtz]

67. Yeah I know of some good spots. n/t

[sgxnk]

44. um

did u forget about INTEREST

compund interest is the 8th wonder of the world

please recompute your #'s and get back to me

[LincolnMcGrath]

10. Unbelievable! It is really a shame we have dlcentrist-zellocrats caving in

to big business on this fundamental human right.

[baldguy]

11. .

:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

Its so sad its funny.

[Orrex]

12. That's the mantra of corporate America

Like all detainees of cube-based corporate life, my friends and I occasionally pool our money when the Powerball jackpot really starts to hit the stratosphere. Of course we don't expect to win, but...

We invariably joke about not coming into work the next day, and how much it would take to inspire us to "walk away" from the grind. Predictably, the million-dollar figure is often bandied about, and why not? Such a sum would actually shave off a visible fraction of my student loan debt, after all.

But each and every time, our wet-blanket of a boss has to issue his wisdom: "you can't retire on a million dollars."

If that's true, then I'll literally never be able to retire, barring some kind of financial miracle. Someone who grosses $35K a year would have to work 50+ years just to hit the one million mark, much less have enough to retire on a million dollars.

If I'm lucky, and if I work until I'm 85, I might just have enough to afford a bare pine box to be buried in.

$300,000 might as well be a brazillion dollars, as far as my income is concerned. I suspect that the same is true for the vast majority of full time workers here in the world's strongest economy.

[SoCalDem]

23. Buy your coffin from costco..use it as a coffee table/storage

and when you "need" it....well that's one less expense to worry about :evilgrin:

[daleo]

24. Or "dig your own grave, and save!"

A notable Simpsons self-help video.

[mikeytherat]

87. A great video, along with "Mothballing Your Battleship" and

"The Half-Assed Approach to Foundation Repair."

mikey_the_rat

[WhiteTara]

79. great idea. I'm thinking home cremation

I think the funeral pyre idea is good. Everything left is to replenish the earth. Think of the ritual time and ceremony of caring for a deceased loved one.

[Subdivisions]

95. I used to have..

an ex-girlfriend whose stepfather built coffins for himself and her mother and they now use them both as furniture. They also own their own land and the tree they both plan to be buried under.

[mike923]

41. Consider yourself lucky if you can still work at 85...

30 years ago, this would mean you outlived your expected life by 25 years.

[pitohui]

71. no one's going to hire you at 85

it doesn't matter if you "can" work -- and keep in mind that half of all 85 year olds have alzheimer's disease

people are being denied jobs at age 40 because they're too old, are you going to be willing to pay a kickback when you're 85 to get that greeter's job at walmart? because if you don't pay, you'll be passed over for someone who will

[mike923]

90. My point was....

we are talking about people on average living over 85 years. In 30 years, the average lifespan is probably going to be far beyond 85. The current system (pensions, social secruity, medicare) is based on living a few years past 65.

So there are two ways to look at it. Hooray! We have that much more life ahead of us!

Or, Holy Cow! i've only planned to be retired for about 10 years, now i have to plan to cover 30 or so years of not working.

All things consider, i'd be thankful for the extra time. Figure out how to pay for it when it comes.

[pitohui]

107. half of all people over age 85 have alzheimer's symptoms

there is no reason to "hooray" you are going to live to be 85, it isn't pretty and you are unlikely to be able to work -- odds are pretty good either you or your spouse is going to be seriously ill

there is no guarantee that you'll have the mental ability to be able to "figure out how to pay for it when it comes"

[mike923]

110. In 2006 people over 85 are very elderly...

in 2050, i would expect that those 85 years are going to be much healthier/active.

My parents, who are in their 60s, are as healthy and active as they were in their 40s. Dad still played softball two nights a week until just recently. When they were my age, people in their 60s were more often than not weak and frail. But advances in all health fields have allowed for people of that age to live fuller lives. Think about the advances our society is capable in the next 50 years!

The age of receiving social security was set at 62 because that was the age most people died. Therefore, if you lived a few years past that, you were the exception, not the rule. Many people contributed to S.S. all their lives, and died just prior to receiving their first check. Now the average age of death is 80 years. In 50 years, i wouldn't be surprised if it is 100 or more. So retiring at 60, like our society has geared itself to, means covering your expenses for 40 years or so without a paycheck. That's a hellavah burden, whether it is covered by savings/family/gov't.

So when i said living to 85 should be a blessing, not a curse. That's entirely true. Its a good thing people are living longer. With that blessing comes the added responsibilty to make sure you aren't a drain on someone else. Given the tools to save we have in this country, it isn't hard.

[kineneb]

14. health care now vs. retirement later

guess which one won? What savings, when Medi-cal allows no more than $3000 cash assets, or lose all medicine coverage? Oh, and there is food and gas to get to all the medical appointments.

Those guys must be smoking some really good stuff, 'cause most of us will never see that kind of money.

[Sancho]

16. This will be the news of the future that Bush has us avoiding today!

My wife in in her 28th year of teaching, and I have all my retirement in annuities. We figured that we could do like our parents and stay home and retire for 20 years or so...but now it looks like we're working for health insurance. The country is so distracted by the "war" that people can't see what a mess heath and insurance have become. The same people who are losing their shirt (here in Florida) paying for the Bush friends to get rich support the Repubs....amazing. Great post.

[Sabien]

18. you hit it on the head

I'm convinced that's the plan...making us all keep working in order to afford not dying (keep a job just for the health insurance)

[raccoon]

42. "keep a job just for the health insurance"--that's if you're lucky

enough to have a job that offers health insurance. A pretty big IF, IME.

[newscott]

17. So who's planning on retiring? Not me.

[RebelOne]

37. I'd like to, but can't afford to.

I'm at the age where I should have retired 2 years ago.

[mike923]

93. At 59, i'm out the door....

I have been planning (looking forward to) retirement since i cashed my first paycheck at 22. All my college professors preached that Social Security wasn't going to be around by the time we retired, and that with the extended lifespans, we should plan on living up to 40 years without an income. That meant saving a small portion of each check for 40 years.

It hasn't been difficult, and i just go without getting a new car every two years, cable tv, cell phones, ect. But isn't that the lifestyle progressives teach?

[llmart]

97. We get a new car every 15 years............

(my husband fixes them when there's something wrong - whatever happened to that concept?), and we don't own cell phones. Some marketing people will always try to convince you that you can't live without something, and that's worked with the cell phone concept. People think they can't live without them, but we do.

[mike923]

98. cable tv, new clothes, air conditioning, ect....

you have to be able to budget, and when savings/retirement is the first thing taken out, you just learn to deal with what you have left. Given the law of time/value of money, it doesn't take hundreds of dollars a month in order to save enough to cover your retirement.

Considering that you are also in the process of paying off your mortgage, you should be able to retire debt free, not have a mortgage payment, and a lump sum (say $500k) that earns $30k or more each year in interest. That's plenty to live on.

Budget well, live within your means. Considering how rough of a life our grandparents had, i suggest counting ones blessings daily is also in order.

[chiffon]

19. I guess I am screwed.

:hippie:

I hope noone gets cited if they feed me in the park or on the street.

[NEOhiodemocrat]

20. I really did not need to see this today

My husband just worked his last day, retires tomorrow, one of those take a buyout now or may loose out latter situations. Guess at least one of us is going to have to skip the health care, or maybe we could take turns, him one year, me the next. Bummer

[Warren Stupidity]

21. Those numbers are very low.

Or perhaps when they say health care premiums and out of pocket expenses, they mean just that and are not talking about your basic cost of living expenses like food clothing and shelter. I say that you need at least twice that if you live in any of the major urban areas (i.e. blueland.)

Just remove the least significant zero and you have a better approximation of real dollar values, that is if you are in your late 40s - 60s.

Maybe when we are all millionaires we will start to figure out just how badly we have been snookered.

[yorkiemommie1]

22. seems low to me too

we live in SoCal.

[raccoon]

43. I took it that's what they meant--

"they mean just (health care premiums and OOP expenses" and are not talking about your basic cost of living expenses like food clothing and shelter."

[pitohui]

72. they just mean the health care expenses EOM

,

[htuttle]

25. I plan on "Going in Style"

Get me a shotgun, a Groucho mask, and a map to the bank.

Like Lee Strasberg said in the film of the same name:

Willie: Joe... What if we get shot?
(silence)
Joe: What's the difference?

[rocktivity]

26. .

:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :cry:

rocknation

[AlphaCentauri]

27. A real state bubble burst would help low the inflation? n/t

[aaronbees]

28. Pricing our future right out of existence...

That's the neocon gameplan.

[MagickMuffin]

29. Using my Crystal Ball,

I can see into the future. Grannies & Granpapas robbing banks, grand theft larceny, killing sprees. If the prison system still provides food, clothing, and health care, then the penal system will be housing the old people.:rofl:

[The Anti-Neo Con]

33. For real.

Prison sucks I'm sure, but when it comes down to survival, they do at least get a roof over their head, 3 meals a day, dental and medical care, etc. It'll be the only way some will be able to survive.

[pitohui]

73. dental and medical care in prison?

don't make me laugh

the nation magazine has reported on women in prison who are refused treatment for breast cancer

you are not guaranteed to be sent to a prison that provides free medical care

and dental? please what drugs are these?

[tbyg52]

48. Am I remembering something out of a book...

...or has this actually happened?

[Pugee]

76. Future? The future is here.

Friday, a payday loan place got robbed in my town by an older man with a gray mustache. I made the comment at work that you know the economy is bad when senior citizens start robbing banks.

[itzamirakul]

30. $300,000 will last about two years with today's prices...nt

[Eurobabe]

31. OK, I'll get right on it!

<sarcasm>

[mtnester]

34. Ahh HAH hah hah hee hoo ha ha

Funny. That's a good one!:sarcasm:

On my more serious note, lots of us are going to have to rely on our kids, or work until we DROP DEAD. Or hit the lottery.

[Dissenting_Prole]

38. $300,000, or $40,000 in silver bullion n/t

[newblewtoo]

55. bullion?

How did that work out for the Hunt brothers in the seventies? Storage might be a problem too.

[Dissenting_Prole]

88. $40,000 worth of silver is just over 200 lbs.

I could bury that in the corner of my yard for a couple of years, no problem.

When silver hits $70 an ounce in about four years, I could dig it up and retire early as a bonus. Who among us will have a job to go to anyway?

[sidpleasant]

40. Work until you die - the GOP ideal

There was a fascinating article in Sunday's NY Times about how the health of Americans has changed since the Civil War. The average man today is a couple of inches taller and 20 pounds heavier than his Union Army ancestor. Anyway, the article alse noted that in the mid 19th century no one had an expectation of retiring from work. Almost everyone worked full time until they dropped dead or became too disabled to work. Since the Republicans are hell - bent on restoring 19th century robber baron capitalism it follows that they'd want to reduce the middle class and working class to the labor conditions of that period too: no unions, little opportunity for advancement, work 'til you die. That's the Republican dream - a few super rich oligarchs, the rest of us barely better than serfs.

[tbyg52]

49. Oh yeah!

They want to keep us all too busy scraping out a living to notice what they are doing, much less do anything about it.

[tbyg52]

45. So that's all I need to do!

Thanks for the advice. Now give me the money....

[IronLionZion]

46. I hope my life runs out before my money does! EOM

[Megahurtz]

68. That's EXACTLY what all the NEOCONS want. n/t

[Blue_Tires]

51. oh, well...let me take a trip to the cash store and stock up!

my retirement plan? a bullet

[MilesColtrane]

56. My advice?

Put all available investment savings into dog food companies.

That Alpo™ stock is gonna soar because that's all we'll be able to afford to eat.

[cosmicdot]

57. link to Employee Benefit Research Institute

"Savings Needed to Fund Health Insurance and Health Care Expenses in Retirement"

July 2006
EBRI Issue Brief #295
Paperback, 32 pp.
PDF, 553 kb
Employee Benefit Research Institute

http://www.ebri.org/publications/ib/index.cfm?fa=ibDisp&content_id=3650


Maybe if the House-Senate member health coverage is suspended until we all have national health care the pace might pick up to make it happen faster. They can buy "affordable insurance" in the interim.

`````````

Why won't the DNC, Democratic Senators, and 2006 mid-term campaigns embrace John Conyers' Bill H.R. 676 (introduced in the 108th Congress) and push it with vigor?

http://thomas.loc.gov/cgi-bin/bdquery/z?d109:H.R.676:@@@L&summ2=m&

It currently has 75 co-sponsors.

[conflictgirl]

60. At age 32, I haven't even made HALF that much money yet

I haven't even made much more than $100,000 in my 15 years in the labor force so far. I am lucky I still have a long time until I'm even "retirement age" though to be honest neither my husband or I expects that we'll ever be able to retire. I do worry about having some money saved in case one of us becomes ill to the point that we can't work, though.

Unfortunately it's probably going to be many years until I can even afford to start saving for my retirement.

[lovuian]

61. I predict that we will have Universal Health care by then or

we will have a bunch of poor old people who can't pay
but can VOTE
Decision let the voter die a pauper in the streets


or

Enact Universal Health care


America needs to get a life

[Mr. Mojo Risin]

62. No problem, only $299,950 to go.

Oh damn, I need get gas on the way home. No problem, only $299,995 to go. And dinner. Damn again. Now its up to $300,020. This sucks.

[DiverDave]

63. 300K for the U.S., MUCH less in Costa Rica

If you think I'm gonna stay here and eat dog food, you are daft...

I'm going to Costa Rica...that is if they accept old farts with the minimum of resources by then...

[pitohui]

74. costa rica don't accept you w. a minimum of resources NOW

the best deal is probably panama, but even they would like you to show that you have $100,000

[DiverDave]

86. From the Costa Rica website:

You have a secure income from a retirement plan or pension of at least $7,200.00US dollars per year

http://www.costarica.com/Home/Travel/Things_to_Know/Relocation_Information/Permanent_Residency/Elegibility

I think I could swing that...I hope...

[pitohui]

108. ok if they're still honoring that, cool

but the prices i saw in costa rica would make that impossible to live on, my friend -- could be the area i was visiting -- seemed to be lots of $300K homes, so housing just as expensive as louisiana or more so

it looks like you can also "buy" residency by investing $100K in a "reforestation project"

[high density]

65. $300k??

That will last, what, five years if you're lucky?

[xxqqqzme]

69. and that's TODAY!

If you are 50 you will be working for another 15 years - how much will you need in 2021? A hellovalot more than $300,000.

[nick303]

75. What this means

At an 8% return, if you save 1000 a year starting at age 22, at 65 you'll have $329,000.

[MysteryToMyself]

77. 8% ?

5% is the going rate for savers.

Well the state and fed will pay your home and medical bills, but they take it out of your estate when you die. No inheritence for the children. They will have to start from scratch. That is what the bankers want.

[WhiteTara]

78. stay healthy comrades and

look to alternative medicines!
When I read the headline, I thought that meant how much we needed for 30 years of cushy living. But then I read that's just MEDICAL coverage. Are they nuts?

[illumn8d]

80. That seems low to me for any urban area

Maybe I will get a few days off before I die.

[Critters2]

84. Another reason to retire to Iowa

That, and it'll get me out of Illinois!

[laylah]

81. Well then

I must get busy. I am about $299,000. behind. Shouldn't be a problem, being a 55 year old divorce' in the social work field. :sarcasm:

[Critters2]

83. Is this over and above pension?

Cuz my pension is halfway there, and I'm halfway to retirement--20th anniversary of my ordination is in September, and I have 20 years until I get full SS.

But if by "in the bank" you mean my own bank account, I'm screwed.

[tom22]

85. actually you probably need a lot more. The key is to save

beginning in your twenties and invest half way reasonably. It can be done but you have to put away even a small amount from each paycheck. The poor can't do it. but the middle class can and should.

[mike923]

91. A $100 a month or so into a mutual fund, for 20 years should get you there

[pitohui]

109. i see you've never actually done this

those of us who bought into that crap in the 80s and actually tried it are rolling on the floor laughing right now

100 times 12 times 20 is $24,000 so you are projecting almost all of the $300,000 to come not from savings but as a gain from a prolonged bull market -- such as we can't expect to see again, now that the 1990s era of deeply discounted oil prices is long over -- in case you haven't noticed, the DOW has barely returned to about the level of the 90s, so that's 6-plus years w. effectively no gain at all

and notice -- even in the 1990s, the amount you gained in an index mutual fund was nowhere close to the spectacular double-digit gain in the cost of health care and health insurance

you can run as fast as you like, but they're moving the goal post

[mike923]

113. The market has averaged 8% growth since the 30s....

there were peaks and valleys, but it's averaged out.

Are you putting yours away in a mattrice? How's that working?

[Massachusetts]

89. No Need

Learn how to Garden (grow your food), instead.

[Iniquitous Bunny]

94. Good in theory.

However, my tomatoes wouldn't be accepted as trade for any utilities, housing costs, car costs, or prescriptions I may need. I don't discount it could help (if one is still physically able to do so).

[Arugula Latte]

92. Good thing The Republicans want to slash minimum wages!

Thanks a lot, Republicans! I'm sure the millions of people you've screwed over in favor of Paris Hilton will thank you when they're eating dog food ... :eyes:

[lonestarnot]

100. 3 cents won't cut it egh?

[Occulus]

101. I can't even get $3000 in the bank.

But that's $300,000 today. How much will I need by the time I hit retirement age?

Millions?

Come on. I've never really made enough to invest- my debts aren't the sort that one can just walk away from- I should be able to easily afford high-speed internet and cable on what I make (with bennies, about 60K a year)... but I seem to have been living paycheck to paycheck for some years now.

What the fuck is going on?? And it's not just me, it's not just "bad choices" made by me... it seems it be everyone in my boat.

:wtf:

[mike923]

102. Does your company offer any type of 401k match?

Not sure how old you are, but getting started in one's 20s should allow for an adequate retirement nest egg. If you aren't taking advantage of the company match, you are leaving compensation on the table. The percentage you select is pre tax, meaning you really don't lose that much in take home pay by setting aside money into a 401k. I recently increased mine by $100 per month, and my take home pay only dropped by $60 or so. If it is out of your check automatically, it makes it easier to budget. Just like having your income tax automatically deducted. Imagine having to write out a check each month to the IRS!

Putting 5% to 10% into a 401k will make you a millionaire by the time you retire.

[leftofthedial]

103. I think I'm gonna kill myself

[belab13]

111. the fractional reserve banking system out to hold up nicely

when all the trillions of re loans start to go bad.

Gold and silver is the only real money.

[Omaha Steve]

117. UPDATE Get ready for the Medicare crunch Reuters

Full article: http://money.excite.com/ht/nw/bus/20060805/hle_bus-n05258836.html



Get ready for the Medicare crunch

Saturday August 5, 8:20 AM EDT

By Linda Stern

WASHINGTON (Reuters) - Despite all the talk about the shaky future of Social Security, its potential shortfall isn't the biggest risk for future retirees. They should be worrying about Medicare instead.

The government's health insurance plan for retirees is on a crash course with the realities of an aging population and an increasingly expensive medical system. It's projected to go bust in 2020.

That's 20 years earlier than the Social Security fund is expected to become insolvent, and -- boomers: are you getting this? -- only 14 years away.

The Employee Benefit Research Institute is reporting that today's typical Medicare-covered retired couple needs $295,000 in the bank just to cover health care throughout retirement. And that's assuming that they have Medicare to depend on.

The bottom line? That retirement savings plan you're contributing to every month is not just for green fees and gifts for your grandchildren; it's for doctors' visits and medicine. It makes sense to save and invest more than the minimum, and think about earmarking some of your money for health care.

One of the best ways is using a high-deductible health care savings account now as your medical insurance.

If your employer offers one, that's great. If not, consider buying one on your own instead of using your company's insurance plan. It might be a good idea if your employer-provided plan is not that good or if you see job changes in your future.

If you have one of these high-deductible insurance plans, without a second policy, you can use it to accumulate health-earmarked savings for retirement.

These plans let you salt away as much as $5,450 for couples ($2,700 for singles), plus an extra $700 a year for anyone over 55. The money you contribute is tax deductible; when you withdraw it to pay for health care, it is not taxable. That makes it better than tax-deferred retirement accounts.

You can shop for HSAs at a few different Web sites, including http://www.hsainsider.com, http://www.hsafinder.com and http://www.ehealthinsurance.com.