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For Retirees, A Million-Dollar Illusion

Thursday, July 25, 2013 - 6:46 AM
A MILLION dollars isn’t what it used to be.

$1 million is more money than 9 in 10 American families possess. It may no longer be a symbol of boundless wealth, but as a retirement nest egg, $1 million is relatively big. It may seem like a lot to live on.

But in many ways, it’s not.

http://mobile.nytimes.com/2013/06/09/your-money/why-many-retirees-could-outlive-a-1-million-nest-egg.html
 

 
5
ShorebreakShorebreak2,694 posts since
Apr 6, 2010
Rep Points: 14,610
1. Thursday, July 25, 2013 - 7:32 AM
"There are a few steps that people can take on their own, she said. “When you’re younger, and have a lot of human capital, you can save more and put a lot of the savings into stocks,” she said. And then you can gradually shift into bonds as you age, fully understanding that the bond income may be quite limited. “When you’re in your 50s,” she continued, “you can try to save as much as you can, and try not to get accustomed to a lifestyle that you won’t be able to afford later on.”

You can also try to pay off your mortgage, so you have the option of tapping home equity if you need to supplement your income later. And, she suggested, if you’re lucky you’ll find work that you like and can stick with for a long time — until 70, at least."

This is much easier said than done as we go through marriage, chirdren rasing, their education, thier marriage, etc..  We all know how few families are even at the $1M mark for retirement; Let's not spoil it for them (i.e., let them enjoy their life-long financial labor without being a smart a* commenting how a million is an illusion).
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
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