Are you "lucky"if you have a secure retirement?

[DFB]

Two sayings come to mind for me

"The best laid plans of mice and men"

"And you never truly know a woman until you meet her in court"


I've been around long enough seen companies fold, see pension plans lost, see sickness and or despondency take it toll, stock investments ruined, divorce, foreclosure, lawsuits, business plans crash, there's probably a few more things I could think of


I just got a letter from the entity in charge my old factory pension plan sent letters to everyone requesting you take your money and roll it over elsewhere They don't even want to be bothered managing it anymore.

You guys have already covered it well there is a lot variables in life and you do the best you can with the hand that you are dealt. A lot can happen wether you plan or not

Oh one more comes to mind

"There is no free lunch"

 

[300UGUY]

"...It goes up about a dollar per year..."


Is that increase a dollar amount, or a percentage? If it is a percentage, then (assuming no changes) it could amount to quite a sum after 40 years or so.




"..As some of you said they will probably offer an alternative that they will try to make sound like a better deal for the employees, and my fellow "brothers" will fall to their knees and accept it..."


Usually what is offered is the "signing bonus". A lump sum paid up-front. And, yes, a lot of people will look at the lump sum and sign a deal that they would not have otherwise. They see a new ATV, or a new tractor or a new pick-up truck.


Same deal with a lump-sum pension pay-out.

Some people can't pass up a few dollars up-front even if it costs them many dollars in the future:
Hyperbolic discounting - Wikipedia, the free encyclopedia



Again, the only way I would take a lump-sum pension pay-out is if I saw some likely impairment of those future payments.

One of the auto companies offered lump sum buyouts to salary employees a few years ago. It was covered pretty widely in the local press. They interviewed several financial advisors, and they recommended that virtually nobody take the buyout. The amount offered is never enough to buy a equivalent annuity. I treat my pension as if it was a very conservative investment. My 401K and IRA's are mostly in equities. We also have a business and rental income.

I have a friend that took a pension buyout in 2006. He did very well for a couple of years. Nice vacations and a new 45 ft motorhome. 2008 the Great Recession came, and now he works nights as a security guard. His wife complains a lot....

 

[riptides]

Good argument on your part so I withdraw my objection....who wants to change this thread to "Are you lucky if don't need a prenupital agreement.....?"

I think what this thread is exposing, is that there are many factors to consider in a secure retirement. Agreements in place, or not, between partners may present huge problems in the future.

Luck, trust, alignment of stars, timing not withstanding.

 

[300UGUY]

I think what this thread is exposing, is that there are many factors to consider in a secure retirement. Agreements in place, or not, between partners may present huge problems in the future.

Luck, trust, alignment of stars, timing not withstanding.

When I was young, the old guys always said that it was better to be lucky than smart. I thought I was smart..... Later I realized what they were saying: No amount of skill or planning can overcome bad luck.

 

[ovrszd]

A prenup might prevent many marriages.

In some ways a prenup is similar to picking a company or organization that you will work for until retirement.

In this day and age of frequent job switching I basically had one employer from 1975 thru 2011. I picked it because of stability, travel, and challenges. PLUS a locked in guaranteed pension plan which allows me to sit on my butt and type on TBN. My retirement funds my lifestyle, but not much more. But thanksto the Army I traveled most of the world so I don't desire to travel.

That guaranteed pension has all gone away. Now it is a combination of SS, TSP, and a "Basic Benefit plan". SS may go away, TSP is heavily dependent on the stock market and the Basic is darn small.

I think you are right about the prenup thing.

I too retired from the military and also traveled a lot. My wife often talks about taking trips. I have no desire. I also can spend all day in my shop, alone. She is a very social person and often asks me who I talked to or saw today. I often say no one, except communication on the Internet if I choose. I'm not worthy of the great retired life I have.....

 

[murphy1244]

If I needed a prenup, I am with the wrong woman.

 

[ovrszd]

When I was young, the old guys always said that it was better to be lucky than smart. I thought I was smart..... Later I realized what they were saying: No amount of skill or planning can overcome bad luck.

True that. Especially in regards to health.

 

[ovrszd]

If I needed a prenup, I am with the wrong woman.

True that Murph.

 

[murphy1244]

When I was young, the old guys always said that it was better to be lucky than smart. I thought I was smart..... Later I realized what they were saying: No amount of skill or planning can overcome bad luck.

And bad luck is better than no luck at all.

 

[riptides]

And bad luck is better than no luck at all.

That's too deep for me, care to explain?