Rick345
New member
- Joined
- Apr 17, 2011
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- Political Leaning
- Centrist
15% of income per year for 40 years of work, with even moderate gain, is enough to live on for quite some time, assuming that the worker was smart enough to get completely out of debt before retiring.
While its always a going idea to pay off all debts before retiring and I would go as far as buy yourselves a nice present a nice trip, big screen TV, seasons tickets to whatever sport you enjoy... Don't attempt all three and don't do it at all if you can't afford it but, treat yourself one last time before retirement you deserve it.
However, to phase out SS is a mistake and assuming one will make even moderate gains on investments is foolish. Any and every type of investment can go bust in a hurry. While stocks out do all other types of investments over time they offer no secuity. Nor is property, T-Bills, CD's or anything for that matter. While I think people should have private investments along side their 401K's and SS we still need a secure government backed system as a safety net if all else fails.
What I tell people about investing is invest starting as early as you can and sock away as much as you can afford even if its only five bucks a paycheck because we all tend to spend everything we make and then some. But, even over 40 years if all you could sock away was 5K and the economy tanked so bad you were only left with 2500 bucks at retirement time its 2500 bucks more than you would have had if you didn't invest anything.
What retirement investors are presently asking those nearing retirement is "Well it probably a good idea to consider what kind of part time job you'd like after you retire." While the economy will recover and your 401K will recover the economy tanks about every 15-20 years and if you retire just before a down turn or just after a down turn you're in a world of hurt.
In the forty years I've been working I've seen my retirement funds collapse twice once in the early 90's and in the present and I've resigned myself to the fact that I'll have to work till I die.