Author Topic: 48 year old has $6K saved for retirement  (Read 6222 times)

davisgang90

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48 year old has $6K saved for retirement
« on: November 29, 2013, 07:33:12 AM »
Retirement shouldn't cost more than $20 a month right? (4% withdrawal rate)


http://www.foxbusiness.com/personal-finance/2013/11/22/48-year-old-has-just-6k-for-retirement/?intcmp=HPBucket

Kazimieras

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Re: 48 year old has $6K saved for retirement
« Reply #1 on: November 29, 2013, 08:19:21 AM »
Well he may be alright. The key for retirement savings is to have enough money so that you don't worry about outliving your savings. If his health is at all like his finances... ;)

oldladystache

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Re: 48 year old has $6K saved for retirement
« Reply #2 on: November 29, 2013, 08:35:38 AM »
Quote
I have a $250,000 mortgage and $6,000 in a 403(b) retirement account. I am 48 years old. My mortgage won't be paid off until after I retire. Should I put more money aside to pay off my mortgage or more into my 403(b) account?

If you only count what's in a retirement account I guess I'll starve too. I have about $8,000 in my retirement account and I'm old.

But I also have a paid for house and enough taxable investment to live on. Plus social security. Plus a large inheritance promised.

Most alarmist articles leave out enough details to make them useless.

notquitefrugal

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Re: 48 year old has $6K saved for retirement
« Reply #3 on: November 29, 2013, 12:27:13 PM »
A 403(b) implies he may work for a government agency. If he will receive a generous pension, he may not need any additional retirement savings if he wants to retire at a normal retirement age.

MrsPete

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Re: 48 year old has $6K saved for retirement
« Reply #4 on: November 30, 2013, 07:13:42 AM »
Quote
I have a $250,000 mortgage and $6,000 in a 403(b) retirement account. I am 48 years old. My mortgage won't be paid off until after I retire. Should I put more money aside to pay off my mortgage or more into my 403(b) account?

If you only count what's in a retirement account I guess I'll starve too. I have about $8,000 in my retirement account and I'm old.

But I also have a paid for house and enough taxable investment to live on. Plus social security. Plus a large inheritance promised.

Most alarmist articles leave out enough details to make them useless.
I agree that you need to look at the larger picture instead of JUST what may be sitting in a neat little account labeled "retirement", but one thing in your plan looks suspicious:  Counting on a large inheritance.  None of us can know that this'll pan out.  The individual who's made the promise may live long enough to use up the majority of that money, may decide to give it to someone else.  Even if it does come in to play, it may not "be yours" until you yourself are quite elderly.  Someone else's money is a tricky thing to count upon. 

oldladystache

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Re: 48 year old has $6K saved for retirement
« Reply #5 on: November 30, 2013, 08:07:46 AM »
Quote
I have a $250,000 mortgage and $6,000 in a 403(b) retirement account. I am 48 years old. My mortgage won't be paid off until after I retire. Should I put more money aside to pay off my mortgage or more into my 403(b) account?

If you only count what's in a retirement account I guess I'll starve too. I have about $8,000 in my retirement account and I'm old.

But I also have a paid for house and enough taxable investment to live on. Plus social security. Plus a large inheritance promised.

Most alarmist articles leave out enough details to make them useless.
I agree that you need to look at the larger picture instead of JUST what may be sitting in a neat little account labeled "retirement", but one thing in your plan looks suspicious:  Counting on a large inheritance.  None of us can know that this'll pan out.  The individual who's made the promise may live long enough to use up the majority of that money, may decide to give it to someone else.  Even if it does come in to play, it may not "be yours" until you yourself are quite elderly.  Someone else's money is a tricky thing to count upon.
I'm not "counting" on the inheritance. I'm not sure what I'd do with it. I'll be fine without it. But there's little doubt I'll get it. Part of it is my dad's home, and I'm already listed as co-owner with right of survivorship. The rest is an annuity that's paying him monthly (more than my normal living costs) as long as he lives and will go to me when he dies. He couldn't take it away from me even if he wanted to. And he's gonna be 99 in a few months. Of course he may live to 110. He's got a good start.

clarkm04

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Re: 48 year old has $6K saved for retirement
« Reply #6 on: November 30, 2013, 08:24:43 AM »
A 403(b) implies he may work for a government agency. If he will receive a generous pension, he may not need any additional retirement savings if he wants to retire at a normal retirement age.

Not necessarily.  I work at a private school.  No pension, but we have a 403B.  Employer puts in 6% if you put in 3%.

You figured if he had a pension it would be stated.  When I was a public school teacher, 15% of my pay along with 10 to 15% from my employer went into the pension system for retirement.

Peanut Butter

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Re: 48 year old has $6K saved for retirement
« Reply #7 on: December 01, 2013, 11:59:40 AM »
A 403(b) implies he may work for a government agency. If he will receive a generous pension, he may not need any additional retirement savings if he wants to retire at a normal retirement age.

Not necessarily.  I work at a private school.  No pension, but we have a 403B.  Employer puts in 6% if you put in 3%.

You figured if he had a pension it would be stated.  When I was a public school teacher, 15% of my pay along with 10 to 15% from my employer went into the pension system for retirement.

I work for a private hospital and we have 403(b) accounts. The employer matches 4% of up to 10%.

adesertsky

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Re: 48 year old has $6K saved for retirement
« Reply #8 on: December 02, 2013, 08:18:46 PM »
A friend of mine retired "early" today (she's 55).  She told me she has $7,000 in her 401k (no other savings).  Aaaaaahhhhhhh!  Her brother has paid for everything for her (housing, car, and big stuff like that) since she got divorced many years ago.  She plans on getting an easy job now for spending money but I just can't understand how this is possible.  And I think I would feel really horrible taking such a massive amount of money from a family member's own financial security.  Sometimes, though, you have to keep your mouth shut with your friends.