Retirement savings ....Yikes !

[ultrarunner]

I can (& often DO) argue it both ways (-:

Bigger cars and bigger houses during peak earnings years vs socking it away and hoping to live long enough to enjoy it ?
Enjoy it while you can, hope to die the day your last penny is spent ?
Outlive the money or leave some for "dependents" to enjoy ?
Accept somewhat less salary for most of the working years in exchange for a "Good company (or Government) pension" ? a pension fund that may or may not survive.

Neighbors have borrowed against their houses to "invest" at the peak, lost their jobs, sold on the panic, and are now severely underwater with little/no income, a BIG n'th mortgage that they have no hope of paying off before retirement.

I "failed to invest" in the last five or six market crashes, so wadda I know ?
At least I paid off the house a few years early by rounding up a bit each month and putting that directly against principal.

I'm with you...

I really don't care that I missed out if it means not sleeping nights...

My idea of diversity is owning several properties with a tractor for each!

 

[Gale Hawkins]

This is why I like the Flat Tax idea... everyone has skin in the game.

Sadly it has wings like those of a snake.

 

[shortwave]

My idea of diversity is owning several properties with a tractor for each!

Historically speaking, productive farmland is the only way to (somewhat) lasting wealth. Scores of big companies/countries/empires have come and gone in the past 10, 100, 1000 years. The only estates that weather the storms are those that can efficiently grow food. With care, good farmland will last several hundred years or longer. Do you think any of the "blue chip" stocks will be around?

 

[Gale Hawkins]

I was shown today the results of one starting to investing $5K a year at the age 16 (when a lot of gets start working today) in a Roth IRA and only doing it for 10 years and then never investing again. Keeping that $50K invested in the stock market until retirement age lead to around $1,000,000.00 at retirement age at historical 8% stock market appreciation over 50 years. Time is the best thing one can have for larger retirement savings account values.

 

[ultrarunner]

Historically speaking, productive farmland is the only way to (somewhat) lasting wealth. Scores of big companies/countries/empires have come and gone in the past 10, 100, 1000 years. The only estates that weather the storms are those that can efficiently grow food. With care, good farmland will last several hundred years or longer. Do you think any of the "blue chip" stocks will be around?

This is the consensus of the farming side of the family... farmable land, some timber and ample water.

To my Grandparents... the land was everything as it was to those that came before them...

 

[DABSGT]

Lots of businesses still have a desk reserved for the 90 year old original owner who comes in to just sit
and watch. And he's doing exactly what he wants to do. My local Kubota dealer's father does just that. He's pretty confused, but he loves to come in
and feel part of things. At his old desk, now cleaned off, but he's content. I hope I am when I turn 90.

I have an 89 year old uncle owns an oil company, still goes out delivering oil and furnace repair! Nice weather is now arriving he is getting ready to plant a small garden.

He just keep on going, scares the heck out of me sometimes I often find him napping in one of his trucks and last summer on his dozer.

Sent from my iPad using TractorByNet

 

[Gale Hawkins]

We have a 97 year old guy that got his deer this last season solo. He goes out on his four wheeler then calls his grandson when he gets one.

 

[MacLawn]

Ok, I just finished my taxes (ugh, ugh - yep, I'm for the FairTax!) using software and noticed at one place it said something about being exempt for something when one reaches 65. I'll be 65 about first January next year. For those of you already there, what changes? I can't get back to what I read. Thanks.

 

[schoolsout]

Ok, I just finished my taxes (ugh, ugh - yep, I'm for the FairTax!) using software and noticed at one place it said something about being exempt for something when one reaches 65. I'll be 65 about first January next year. For those of you already there, what changes? I can't get back to what I read. Thanks.

You get an additional deduction. It isn't much, but better than nothing. Sad thing is medical expense deduction is only expenses over 7.5% of AGI for 2012, but supposed to go to 10% in 2013. For those getting older, that extra deduction may be a moot point if you itemize and have some med expenses.

 

[Gator6x4]

Ok, I just finished my taxes (ugh, ugh - yep, I'm for the FairTax!) using software and noticed at one place it said something about being exempt for something when one reaches 65. I'll be 65 about first January next year. For those of you already there, what changes? I can't get back to what I read. Thanks.

Look for a "flat tax" right after you see the sky full of Donkeys flying. A flat tax would be a great assistance to those without any deductions. It would be one gigantic tax increase for those now claiming deductions for, mortgages, college, medical, child support, business expenses, etc, etc on an on for the multitude of items one can claim a deduction on. Small business owners would be out marching in the streets if a "Flat Tax" plan was enacted.

Think about the simply tax form. Here is what I made, here is the flat tax owed. All information needed would fit nicely on a 4x6 file card.

 

[rekees4300]

Ok, I just finished my taxes (ugh, ugh - yep, I'm for the FairTax!) using software and noticed at one place it said something about being exempt for something when one reaches 65. I'll be 65 about first January next year. For those of you already there, what changes? I can't get back to what I read. Thanks.

The standard deduction is higher for taxpayers who are 65 or older, or blind.

 

[MacLawn]

Thanks, rekees, that's what kind of info I needed.

 

[Gale Hawkins]

Obama Budget Eyes Americans' Hard-Earned Retirement Accounts - Investors.com

 

[zzvyb6]

Obama Budget Eyes Americans' Hard-Earned Retirement Accounts - Investors.com

He has a large number of poor, unhealthy and unregistered Democrats to feed, shelter, civilize and medicate. Its death by a thousand stings for the rest. Isn't that what the new majority electorate wants?

 

[Travelover]

Obama Budget Eyes Americans' Hard-Earned Retirement Accounts - Investors.com

This would limit the amount one is able to put away in an IRA or 401(k) to a measly $3 Million. How is anyone supposed to retire on that?

 

[shortwave]

This would limit the amount one is able to put away in an IRA or 401(k) to a measly $3 Million. How is anyone supposed to retire on that?

I think the worry is that Congress will start inching the limit down until it affects a majority of us.

 

[scott_vt]

I think the worry is that Congress will start inching the limit down until it affects a majority of us.

Good Afternoon shortwave,
Yep exactly, and when that number gets closer to what middle americans have put away in their 401 accounts, then you will hear some cries of "foul" !!! Just look what they have done to ss !

 

[daugen]

measly $3 Million. How is anyone supposed to retire on that?

vs

when that number gets closer to what middle americans have put away in their 401 accounts

No worry there. Not one middle American has that much money, or they sure would not be "middle".
I bet most "middle Americans" would be grateful to have $500K in their retirement.
From first hand experience, I can tell you that most of them don't.
Now I live in a fairly high income area and some sure do, but until they get those $5-7K mortgages paid off,
they are going to be running up a steep, steep hill.

Repeat ad nauseum...pay yourself first.
And perhaps we should teach a variation of the classic grasshopper and ant story, and
let's have the grasshopper get very, very hungry. Might be more realistic.

 

[brin]

This would limit the amount one is able to put away in an IRA or 401(k) to a measly $3 Million. How is anyone supposed to retire on that?

That's for sure ...Need at least $100,000,000.00 when you consider hyper inflation is on its way....just like Zimbabwe

 

[ultrarunner]

Could be a problem if you are 40 to 50 years out...

Who would have thought a 1970 35k home would sell for 750k?