Easy fix for our economy

[rickardracing]

If you live to be the average 76, That is only $41k a year (only $33k if you don't invest it, but could be less than that if you invest it poorly) and a lot of that will be needed to continue your health insurance once you don't have any from work. That and to pay the co pay on doctors visits, and the 10% insurance still doesn't pay on any procedure up to the max $1000 a year most insurance companies finally will pitch in to 100%, and the co-pay on prescriptions alone will come to over $300,000. So that makes it more like $22k to $30K per year to live on the rest of your life.. And with average inflation those last few years, that $22k will be worth about what $7k is now, so you will hit poverty level about mid 60s, and be well below poverty level your last few years.

 

 

Well call me nieve but I plan on collecting my social security starting at age 62. My house is free and clear now, low monthly debt. My parents live on ss and live a pretty good life. Alot of months they have some left over. They go where they want and do what they want. YOU CAN LIVE ON IT!! Now if you buy a house,cars and pee it away....well then that's what you get. It's that mentality that gets so many lottery winners into more debt that they originally had. $41k is more than what I make a year now. Poeple do live on less believe it or not. Tell you what........give me the million, I will show you how to do it.

[Freebird]

I'm not retired but my mother is. She pretty much lives off the return of her savings but you certainly could NOT call that a fixed income the way it has dropped over the past few years. Every time one of her CDs matures and she has to renew it, she takes cut in her income.

[Freebird]

I too believe that I could make it on the million. Not sure that I have that many more years left anyway. They say that you are only as old as you feel...that would make me about 130 right now.

 

If I were to obtain a million dollars RIGHT NOW though, I would not quit my job yet. I would have to wait until tomorrow morning to get anybody at the company on the phone.

[Jerry W]

I'm not retired but my mother is. She pretty much lives off the return of her savings but you certainly could NOT call that a fixed income the way it has dropped over the past few years. Every time one of her CDs matures and she has to renew it, she takes cut in her income.

 

There are a lot better places to invest than CD's, IMHO.

[Freebird]

Maybe and I don't know that she has everything in CDs, I just know that she has taken a HUGE hit. CDs are pretty much low risk also and a lot of folks that had money in "better places" lost their tails over the last couple of years.

 

What little I have is in a 401k and it didn't do so well either. I have mine invested in one of the lower risk mutual funds and still took a good hit on it. A lot of it has come back now but it still lost.

[FROG MAN]

$1 Million dollars is not as much money as it use to be.Looks like I'll be working probably another 15 years if I'm luckly and by then a Millon will probably be just 10x the average household income. We live day to day and enjoy life while we can.One thing is for sure dreams and plans have faded away and were now in a global economy. Will the stock market ever yield a 12% annual return average again I doubt it. Work till you drop looks like the new plan.Would like to try a Million though.

[hig4s]

Well call me nieve but I plan on collecting my social security starting at age 62. My house is free and clear now, low monthly debt. My parents live on ss and live a pretty good life. Alot of months they have some left over. They go where they want and do what they want. YOU CAN LIVE ON IT!! Now if you buy a house,cars and pee it away....well then that's what you get. It's that mentality that gets so many lottery winners into more debt that they originally had. $41k is more than what I make a year now. Poeple do live on less believe it or not. Tell you what........give me the million, I will show you how to do it.

 

 

your are naive, because if you stop working before 62, the amount you will get at 62 is greatly reduced, so even if you were given a million, you have to keep working until 62 or you social security will be SQUAT!!! And again, the 41K a year is only if you are a prudent investor and may be fine for now but does not take into account inflation. For a person to be able to retire they need enough in the bank to live off half the interest and be able to re-invest the interest as to compensate for inflation. figuring the best you can count on for investment returns now without taking risks, (this has to last the rest of your life) Is about 4.1%.. Which means of you can wait a year after you invest to use any of the million, and live off $20.5k and reinvest the rest every year You might be OK.. My wife and I would need a minimum of 3 million above what it would take to pay off my home, and even then we would have to give up some things.

[midnightventure]

Hey midnightventure,

There are no autos made in america. As someone said, they are assembled in the USA. A few years ago I read an article in Time magazine that listed the percentage of parts of american vehicles that were made in another country. The auto with the highest percentage of foreign parts was the Ford F150 with 65% of its parts made overseas. I see good ole boys driving their trucks with their harley davidson decal on the back window criticizing people for buying honda and toyotos. Also, you have a yamaha. I don't know of any yamaha's made in the usa.

With cars I have a lot of choices. With American made motorcycles they didn't have a 4 cylinder touring bike. There aren't very many holes in the car lineup but there are lots of holes in the bike lineup. Also when I bought my Venture getting a Harley was a year wait. I think they build a fine bike and I totally support the people that ride one.

[1 Canuck]

$1 Million dollars is not as much money as it use to be.Looks like I'll be working probably another 15 years if I'm luckly and by then a Millon will probably be just 10x the average household income. We live day to day and enjoy life while we can.One thing is for sure dreams and plans have faded away and were now in a global economy. Will the stock market ever yield a 12% annual return average again I doubt it. Work till you drop looks like the new plan.Would like to try a Million though.

 

I quit working on my 1st million so I can start working on my 2nd million.

[midnightventure]

Your 55 and you could nott live on one million dollars for the rest of your life?!?! Seriously?

That's sad.

I am 46, hand me a mill and I will show you how to do it.

If you reread what I wrote you should notice that I said i couldn't live the way I want to. Also I feel kind of guilty about my generation putting the next generation so far into debt so unlike the people with bumper stickers that say they are spending their kids inheritance I intend to leave my kids some.

[midnightventure]

Lets see now, my bank gives me 5% monthly interest. $1,000,000 would yield 50,000 a month. That would add up to 600,000 a year. I could easily live on that.

 

But then if you think about it, there would be 20,000,000 millionaires added to our economy. I'm guessing that would cause inflation to rise even faster than it already is. In which case, for those of us who are lower and/or middle class citizens, it would be even harder for us to afford the basic necessities that we're already struggling to get now. My medications already take up almost half my income.

 

Sorry to rain on your parade.

Bill

Right now it would be more like 1,000,000 times 1% per year which comes to 10000 dollars a year. It's been a long time since I had to survive on that. Let me know what bank gives 5% a month.

[Jerry W]

your are naive, because if you stop working before 62, the amount you will get at 62 is greatly reduced, so even if you were given a million, you have to keep working until 62 or you social security will be SQUAT!!! And again, the 41K a year is only if you are a prudent investor and may be fine for now but does not take into account inflation. For a person to be able to retire they need enough in the bank to live off half the interest and be able to re-invest the interest as to compensate for inflation. figuring the best you can count on for investment returns now without taking risks, (this has to last the rest of your life) Is about 4.1%.. Which means of you can wait a year after you invest to use any of the million, and live off $20.5k and reinvest the rest every year You might be OK.. My wife and I would need a minimum of 3 million above what it would take to pay off my home, and even then we would have to give up some things.

 

Uh, you have been given some misleading information. You do not have to work until you are 62 to get the same amount. You should go visit with your local Social Security office. I know this one, I did not work until I was 62 and I started drawing at 62.

[a1bummer]

Right now it would be more like 1,000,000 times 1% per year which comes to 10000 dollars a year. It's been a long time since I had to survive on that. Let me know what bank gives 5% a month.

 

LOL! That'll teach me to ask someone else and not look for myself. Right now I'm only 0.50% on my savings. You guys really know how to cheer a guy up!

 

But If I had $1,000,000 in my savings, I could be making a whopping 1.13% monthly. Which adds up to $11,300/month & $135,600/year.

 

That is if I'm reading things right.

 

Bill

[Trader]

they may pay interest monthly...but the rate is an ANNUAL rate of return...NOT monthly.

[hig4s]

Uh, you have been given some misleading information. You do not have to work until you are 62 to get the same amount. You should go visit with your local Social Security office. I know this one, I did not work until I was 62 and I started drawing at 62.

 

Straight from the Social Security web page.

 

"As a general rule, early or late retirement will give you about the same TOTAL Social Security benefits over your lifetime. If you retire early, the monthly benefit amounts will be smaller to take into account the longer period you will receive them. If you retire late, you will get benefits for a shorter period of time but the monthly amounts will be larger to make up for the months when you did not receive anything.

In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.

 

For example, if the number of reduction months is 60 (the maximum number for retirement at 62 when normal retirement age is 67), then the benefit is reduced by 30 percent. This maximum reduction is calculated as 36 months times 5/9 of 1 percent plus 24 months times 5/12 of 1 percent.

 

Your benefit payment is based on how much you earned during your working career. Higher lifetime earnings result in higher benefits. If there were some years when you did not work or had low earnings, your benefit amount may be lower than if you had worked steadily.

Your benefit payment also is affected by the age at which you decide to retire. If you retire at age 62 (the earliest possible retirement age for Social Security), your benefit will be lower than if you wait until later to retire. This is explained in more detail below.

"

[Jerry W]

Again, you would do well to visit your local Social Security office. They are talking about when you draw Social Security not when you retire from your job. You are penalized if you draw before full retirement age, which varies depending on your age.

[cecdoo]

LOL! That'll teach me to ask someone else and not look for myself. Right now I'm only 0.50% on my savings. You guys really know how to cheer a guy up!

 

But If I had $1,000,000 in my savings, I could be making a whopping 1.13% monthly. Which adds up to $11,300/month & $135,600/year.

 

That is if I'm reading things right.

 

Bill

 

 

You aint:crying:

[midnightventure]

I know people in their mid 70s that sure wish they had waited till 65 to start drawing Social Security. Everybody has to evaluate their own health and decide what is in their best interest. I grew up dirt poor in a big family. I don't ever want to have to scrape by again.

[hig4s]

Again, you would do well to visit your local Social Security office. They are talking about when you draw Social Security not when you retire from your job. You are penalized if you draw before full retirement age, which varies depending on your age.

 

you keep missing the points.

 

1. The government keeps "borrowing" from Social Security so the benefits keep getting smaller (inflation corrected wise) for new retirees.

 

2. Anyone born after 1943 minimum full retirement age is 66, so what I said does have effect. AND!!! as it clearly states, it depends on how much you made in your lifetime of working. So the person that is 43 and makes less than $41k a year who thinks he can take a million now and retire, and that at 62 his social security will be of any significance has another think coming.

 

But as far as visiting my local SS office, it is mute as I am not covered by SS.

[a1bummer]

they may pay interest monthly...but the rate is an ANNUAL rate of return...NOT monthly.

 

There's a reason I let HER take care of the finances ya know! LOL!

 

[Yammer Dan]

That Fixed Income thing?? No fun money at all!!! Then when Obama takes your SS away because of his mistake it gets to be even less. Don't ask me how I know.My SS Disabilty claim went thru without a glitch. Started getting my checks and paid me since I got hurt. This went on for bout 2 years and they told me. "You can't do that!!" So they stopped my checks for the next 14 months?? And Medical?? Don't want to talk about that!! I should have tucked that million away somewhere. Back yard getting full of empty holes. Anybody wanna buy a 1st Gen??? Can't afford to go play on it!!!

 

Thanks OBAMA you %^^*(^$#@@@!!!

[Michael_Bishop]

Trader I retired at age 53. I was a auto worker. I could see what was coming down the road when companys started talking about legacy cost in 2005. I retired in 2008. I would of like to work for 5 more years for the house would have been paid off. But we are getting their. I talk to Social Security last year to see how that would affect my benefits. They said it might cost me $50 a month. But I figure enjoy life for a while why I can still move around good. May have to go back to work one day how knows.

[Condor]

I filed for early at 62, and my wife filed for it 6 mos later. The main reason I filed was to pay for the health insurance which was going clean out of sight. $950 per month the last time around. When we hit 65 and qualified for Medi-Care it was time. I continue to work even though I collect the monthly stipend, and ever couple of years they 'up' the monthly because I'm still paying into the system. We're none too happy about the cost of living being cut off and congress still getting theirs , but so far we're surviving. The nice thing about being a dot.com biz, is I'll be able to bring in a little bacon, even as I get older. No need to stop. Besides I think my boss is great. And I have enough 1stGen stuff stashed to start another biz if I wanted to.

[Jerry W]

you keep missing the points.

 

1. The government keeps "borrowing" from Social Security so the benefits keep getting smaller (inflation corrected wise) for new retirees.

 

2. Anyone born after 1943 minimum full retirement age is 66, so what I said does have effect. AND!!! as it clearly states, it depends on how much you made in your lifetime of working. So the person that is 43 and makes less than $41k a year who thinks he can take a million now and retire, and that at 62 his social security will be of any significance has another think coming.

 

But as far as visiting my local SS office, it is mute as I am not covered by SS.

 

You stated that if a person retires before he is 62, his social security will be "squat". That is a long ways from 43. I know what can be drawn by retiring at 59 1/2 and drawing at 62. I am doing it.

[hig4s]

You stated that if a person retires before he is 62, his social security will be "squat". That is a long ways from 43. I know what can be drawn by retiring at 59 1/2 and drawing at 62. I am doing it.

 

And what percentage of what you were making when you retired is your benefit?