Author Topic: The Worst Retirement Solution Ever  (Read 5835 times)

dude

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The Worst Retirement Solution Ever
« on: April 21, 2015, 05:02:34 AM »
Oh boy:

http://www.bloomberg.com/news/articles/2015-04-21/this-is-the-worst-retirement-solution-ever

Excerpt:

“I suspect most people are ignoring medical expenses," VanDerhei says. "They magically think Medicare will take care of everything, and very few factor in long-term care expenses.” Once they do that, he says, that 70 percent estimate blows up, unless they’re lucky enough to have a good long-term care policy. If they’re luckier still and don’t need long-term care, VanDerhei figures people can probably get away with 100 percent of pre-retirement income. Yet just 10 percent of workers estimated that they’d need more than 95 percent of pre-retirement income in retirement.

slugline

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Re: The Worst Retirement Solution Ever
« Reply #1 on: April 21, 2015, 05:39:47 AM »
Best part of this article is the stock photo they placed on top.

boarder42

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Re: The Worst Retirement Solution Ever
« Reply #2 on: April 21, 2015, 05:46:01 AM »
this is all true when you consider that the avg. american spends 90%+ of their income.  obviously we lead different lives here.  but the avg american consumer spends almost all they take home.  Now here we need around 40-50% of our income or less but thats b/c of an adjusted lifestyle that the normal person doesnt maintain b/c they think its too hard. and they NEED all this other crap

cerebus

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Re: The Worst Retirement Solution Ever
« Reply #3 on: April 21, 2015, 06:40:27 AM »
The article ends with a call to frugality, yet insists that 100% of income will be needed after retirement owing to healthcare costs. But if they've saved an extra 10% of their salaries a week (by not eating takeout, for instance), they have automatically cut their retirement income requirements so that 100% becomes an unnecessary target.

zephyr911

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Re: The Worst Retirement Solution Ever
« Reply #4 on: April 21, 2015, 07:13:58 AM »
"Forego takeout and start saving that extra $25 a week"

Have you noticed that mainstream finance articles, even ones with dire news on the widespread failure to prepare for retirement, always end up prescribing too-little-too-late solutions? How about an extra $100 a week and actually produce a meaningful change in direction?

This is like waking up at the controls of your intergalactic spacecraft and going "HOLY FUCK, WE'RE HEADED FOR THE HEART OF THE SUN! Well, uh... change course 0.5 degrees and make sure we only hit the edge of it."

The Guru

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Re: The Worst Retirement Solution Ever
« Reply #5 on: April 21, 2015, 07:56:04 AM »
Best part of this article is the stock photo they placed on top.

In those Cialis ads you get Twin Bathtubs In A Field. In your Golden Years you get...this ;-)

shotgunwilly

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Re: The Worst Retirement Solution Ever
« Reply #6 on: April 21, 2015, 08:53:07 AM »
This is like waking up at the controls of your intergalactic spacecraft and going "HOLY FUCK, WE'RE HEADED FOR THE HEART OF THE SUN! Well, uh... change course 0.5 degrees and make sure we only hit the edge of it."

Haha! Awesome.

AH013

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Re: The Worst Retirement Solution Ever
« Reply #7 on: April 21, 2015, 10:38:48 AM »
This is like waking up at the controls of your intergalactic spacecraft and going "HOLY FUCK, WE'RE HEADED FOR THE HEART OF THE SUN! Well, uh... change course 0.5 degrees and make sure we only hit the edge of it."

Haha! Awesome.

+1. 

Helmsman: "Uh sir, we don't have the power to engage engines to maneuver that much!"
First Officer: "Captain, I believe if we switch to life support only in the rec room and the officers' dining hall, we should have more than enough.  Second Officer, drop power to those facilities by..."
Captain: "Belay that order, damnit!  I'll not compromise basic necessities like entertainment and fine food.  What other solutions do you guys have that don't involve sacrifices?"

Psychstache

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Re: The Worst Retirement Solution Ever
« Reply #8 on: April 21, 2015, 10:47:05 AM »
This is like waking up at the controls of your intergalactic spacecraft and going "HOLY FUCK, WE'RE HEADED FOR THE HEART OF THE SUN! Well, uh... change course 0.5 degrees and make sure we only hit the edge of it."

Haha! Awesome.

+1. 

Helmsman: "Uh sir, we don't have the power to engage engines to maneuver that much!"
First Officer: "Captain, I believe if we switch to life support only in the rec room and the officers' dining hall, we should have more than enough.  Second Officer, drop power to those facilities by..."
Captain: "Belay that order, damnit!  I'll not compromise basic necessities like entertainment and fine food.  What other solutions do you guys have that don't involve sacrifices?"

Worst. Star Trek Episode. Ever.

r3dt4rget

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Re: The Worst Retirement Solution Ever
« Reply #9 on: April 21, 2015, 11:50:42 AM »
I'm surprised they didn't mention adopting a fitness lifestyle early and dramatically reducing your chances of needing long-term care.

mtn

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Re: The Worst Retirement Solution Ever
« Reply #10 on: April 21, 2015, 12:25:45 PM »
"Forego takeout and start saving that extra $25 a week"

Have you noticed that mainstream finance articles, even ones with dire news on the widespread failure to prepare for retirement, always end up prescribing too-little-too-late solutions? How about an extra $100 a week and actually produce a meaningful change in direction?

This is like waking up at the controls of your intergalactic spacecraft and going "HOLY FUCK, WE'RE HEADED FOR THE HEART OF THE SUN! Well, uh... change course 0.5 degrees and make sure we only hit the edge of it."

I agree, but if this was a 30 year old reading this and already saving $400 a month and planning on retiring at 65, then that extra $25 a week would amount to $206k more. Not a bad increase for the average "good saver"

zephyr911

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Re: The Worst Retirement Solution Ever
« Reply #11 on: April 21, 2015, 12:41:13 PM »
I'm surprised they didn't mention adopting a fitness lifestyle early and dramatically reducing your chances of needing long-term care.
I know! Best health care plan: get sick as little as possible. Just acquire free public knowledge and use it.

I agree, but if this was a 30 year old reading this and already saving $400 a month and planning on retiring at 65, then that extra $25 a week would amount to $206k more. Not a bad increase for the average "good saver"
Oh, clearly every little bit helps, especially if you're on the mainstream long track and time is on your side. After witnessing a few good facepunches dealing out (simple, and fairly easy) cost cuts on the order of thousands per month, I guess I'm a little jaded to the small steps. To be sure, twenty- and thirtysomethings can dramatically change their distant future with small steps now. All the Boomers we keep hearing about, in their 50s and 60s without savings? They need a full lifestyle restructuring right now, or they'll still be clogging up the workforce in their 80s while TV pundits wonder why teenagers can't find work. They need to put down the takeout, AND the McMansion, AND the Escalade, and about 20 other things they "need", if they ever want to relax and actually enjoy the fruits of their labor instead of chasing luxury till they die.
{/soapbox}

Sibley

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Re: The Worst Retirement Solution Ever
« Reply #12 on: April 29, 2015, 02:12:19 PM »
If I could get my parents to stop smoking, their expenses would drop I'm guessing 25%. Have I managed to do this? Of course not!

I am making progress at least. Dad's stopped several times, but can't maintain while mom still smokes. She's tried but hasn't quite managed it. If nothing else, I fully expect that they'll end up living with me eventually. They will get a rude surprise at that point. Enforced cold turkey. I'll live with the 2 weeks of hell.