Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Back to Financial News

No, Most People Won’t Need A Million Dollar Retirement Fund

Wednesday, October 16, 2013 - 10:37 PM
Here's a Q & A column from Asset Builder's Scott Burns on Retirement and
Social Security issues.
5
cumuluscumulus297 posts since
Jan 16, 2010
Rep Points: 1,370
1. Thursday, October 17, 2013 - 7:05 AM
An income of $74,000.00 a year with their figures and SS??  They are soooo wrong!  Not on today's interest rates.  They must be referring to getting income from riskier investments on that million than CDs.

Those were the good ole days!  Not today.
2
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
2. Thursday, October 17, 2013 - 9:01 AM
This was posted incorrectly at the bottom of Ken's blog. Again sorry. 

One million divided by 30 years would be  $33,333.34 a year with no interest. $33,333.34 added with one or even 2 social security checks it is more than many families with 2 people working, with children have to live on. Not sure where the $74,000 came from in the above post, but below are the median household income numbers for 2012---- Keep in mind that many have 2 people working and have to have 2 cars, clothing for children, house payments, school expenses and the added expenses of 2 people working.

The gap between Asians, at the top, and blacks, at the bottom, is as wide as before. The median income for Asian households in 2012 was $68,600. For non-Hispanic whites, it was about $57,000, while the typical Hispanic household had an income of $39,000, and blacks were at $33,300. 

With $33,333.34 added to the average SS check of $14,760 a year it would be $48,093.34 and with 2 average SS checks it would be $62,853.34. If seniors cannot live on this then maybe it is time to take a class on living within your means. For the readers, I am a senior and live on much less and want for nothing. 

Just a quick note did anyone notice that Scott Burns may be cutting expenses? The answer to the second question had a Q instead of A for answer
4
AllyAlly774 posts since
Jan 16, 2010
Rep Points: 2,256
3. Thursday, October 17, 2013 - 11:17 AM
      #2:   "Not sure where the $74,000 came from in the above post"

"And about that million: If you check my "Life of Riley Index" (see the link below) you'll find that it would now take Social Security and about $1.1 million in retirement savings to provide an income of $74,000 a year— an amount that is more than about 75 percent of all households have."

The above article had the information I was referring to.  If you like facts so much, you can read the entire article.  BTW, are you giving us "facts"  or your own personal comments in your post?  If you are going to post a bunch of figures, it would be nice to know if they can be proven by an article you read.  If not, they are just your comments and opinions of the matter unless proven.

 
3
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
4. Thursday, October 17, 2013 - 12:22 PM
I worded it wrong about the $74,000 and where did it come from. I knew what was in the article I just meant that $74,000 was without SS and $74,000 is more than the median household income. 

The link for household income for 2012 has been in many policy papers. Here is an article from the a newspaper.Log In - The New York Times 

If you want the average SS check amount it has been on TV in the papers and in articles on the internet when telling us about the 1.5% increase in the SS check. Here is a link from the SS website verifying the amount for the last calendar year if you missed it. Average monthly Social Security benefit for a retired worker 

Most of  the over 65 seniors are very lucky. We have healthcare (Medicare) and a steady income from SS. We can survive on that. If we have no 401K or no IRA that is because of choices we made.  IRA's have been around since the 70's and how we invested either in the market or by listening to Ken and his CD tables. I first read about Ken in the Wall Street Journal many years ago (before I had internet where I lived) when I was working. He has been mentioned in every investing or money magazine I have read. The ones who have lost their job are the ones we need to help. In most cases hat is not a choice they made. 
3
AllyAlly774 posts since
Jan 16, 2010
Rep Points: 2,256
5. Thursday, October 17, 2013 - 12:38 PM
Ok, I knew you had your articles but was just making a point.  I don't need to read other people's articles if I want or need certain info.  I prefere to get my own.  Thanks anyway.  Nothing I post is going to make you change your mine about anything and vice versa so let's give it a rest and cope with the rest of the day best we can.  Thank you.
3
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
6. Thursday, October 17, 2013 - 4:28 PM
     Paoli2.....

  You feeling ok girl?

  Seems you've been kinda edgy lately. 
4
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 356
7. Thursday, October 17, 2013 - 5:11 PM
#6  Thank you for asking.  At least you didn't accuse me of being rude.  Don't be concerned about my tet-a-tets with Ally.  It's all in fun.  She just likes to teach and I am not a good student.  :)  I do have a personal problem that occurred recently and has me more "touchy" than usual but eventually I will cope with it and return to my true abnormal "me".   I can't wait! :)  Seriously, if my posts are making you feel uneasy, I will either not post or send them to Ally first so she can let me know if they are postable in private.  Thanks again.
4
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
8. Friday, October 18, 2013 - 12:09 AM
  #7

  You're posts don't bother me in the least :)  no matter who you respond to.

  No one's poking you with a stick though.

  Hope your problem isn't troubling, get a hug from somebody. ;)

 

 
1
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 356
9. Friday, October 18, 2013 - 8:26 AM
Thanks for your kindness Ricochett.  Sorry I can't be who I'm not even for DA.
 
2
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
Reply