Streams

Making Sense of the Dollars

Wednesday, June 18, 2014

retirement savings

In the age of DIY pension plans, Lynnette Khalfani-Cox, personal finance journalist and the founder of AskTheMoneyCoach.com, and Robert Brokamp, personal finance expert at The Motley Fool, offer advice to listeners of all ages on money and retirement.

 

This special show on Retirement first aired on June 18, 2014 and was re-aired in its entirety on September 1.

Guests:

Robert Brokamp and Lynnette Khalfani-Cox

Comments [12]

J M from UWS

Finally. Someone's paying attention to the real issue. But it's too little, too late.

http://time.com/2899504/2030-the-year-retirement-ends/

Jun. 21 2014 12:48 AM
Peg

Let's see... Pay off your college loan ($30,000), get married ($15,000), buy a house (300,000), have a few kids (@ $200,000per = $400,000),5-6 cars ($150,000), college savings for YOUR kids ($160,000), savings for retirement ($1,000,000), oh yes and pay for LIVING.

?...Not a problem??? especially at $50,000 or less per year! I'm sure PLENTY of Americans are ALL SET!

Jun. 18 2014 12:04 PM
J M from UWS

This discussion is so 50 years ago! Does not reflect current harsh realities.

Jun. 18 2014 11:59 AM
V from Manhattan

Buying property and renting is can be beneficial. But the immediate tax benefits disappear after an income of 150k (read about landlord passive income tax rules)

Jun. 18 2014 11:58 AM
RUCB_Alum from Central New Jersey

Someone needs to explain the 'nest egg' principle to Congress. The Greenspan Commission DOUBLED the social security portion of FICA taxes in order to build up a surplus to pay off the Baby Boom. The GOP and many voters laughed at Gore when he recommended a lockbox, that is a strict 'hands off' policy and Bush (once appointed) gave the surplus away in tax breaks - mostly to the wealthy. To 'pay back' for this theft, rates should go down and caps on incomes should go way up...To half a million or more.

Yet the GOP will pretend that they are the defenders of government borrowing. What a crock.

$1.2T mind-boggling? Less than 4 weeks of the national GDP.

Easier federal money is enabling a faster than GDP growth in tuitions. There ought to be a fix for this, too.

Jun. 18 2014 11:54 AM
Tony from Canarsie

"Live into your nineties?" Who has the time for that?

Jun. 18 2014 11:52 AM
V from Manhattan

may want to cover loans against pension/employer retirement plans. the interest you pay it paid into the account (i.e. back to you) rather to the lender (like in a student loan).

Jun. 18 2014 11:51 AM
jgarbuz from Queens

The reality is that MOST workers are going to be living at or near subsistence level most of their working lives, and if they are lucky might have accumulated some net equity in a house or retirement account saved up, and if there are no financial crises that wipe out those savings and they don't get foreclosed on, they might make it through with enough money to live reasonably well for a decade without social security. If you took away social security, there would be mass starvation and earlier deaths. The fact is, most old people will require government assistance for many years or decades no matter what.

Jun. 18 2014 11:51 AM
jgarbuz from Queens

The reality is that MOST workers are going to be living at or near subsistence level most of their working lives, and if they are lucky might have accumulated some net equity in a house or retirement account saved up, and if there are no financial crises that wipe out those savings and they don't get foreclosed on, they might make it through with enough money to live reasonably well for a decade without social security. If you took away social security, there would be mass starvation and earlier deaths. The fact is, most old people will require government assistance for many years or decades no matter what.

Jun. 18 2014 11:49 AM
J M from UWS

The 77-million strong baby boom generation is once again on the cusp of a tide that is transforming the world. Every 8 seconds someone turns 50, and it is estimated that by the middle of this century one-third of the world’s population will be over 60. When you couple that with the fact that the current global life expectancy has increased to over 80 years and a “millennial” can expect to live to 100 – it’s clear that a seismic demographic shift is underway. With the prospect of 20+ years of healthy, productive life past outmoded “retirement” ages, maybe it’s time to revise our antiquated take on life after 60.

Retirement, or the lack thereof, is a real dilemma millions of Americans are currently facing. Among the middle-aged, middle-class, middling-incomed the prospects have never been more elusive. After putting the kids through school, owing more on their mortgages than their homes/nest eggs are worth, (assuming they were able to afford homes), watching real wages stagnate, pensions go the way of the dinosaur, (replaced by stock market roulette), the average boomer is left with less than $50,000 in retirement savings. Doing the actuarial math, even with Social Security benefits they’ll hardly be able keep the wolf from the door … assuming they can afford doors. So, retirement is not an option. But what kind of work will they find in the face of ageism and aging out of their professions?

Jun. 18 2014 11:45 AM
AR from New York

The People's Symphony Concerts are a wonderful way to see incredible solo and chamber music performers (including performers as renowned as the Juilliard Quartet, for example) for very little money. Tickets for a series of 6 concerts can be as little as $10 per concert. My in-laws have had tickets since the 1940s. We began taking our son to these concerts when he was a preschooler, figuring that if he couldn't sit still, it wouldn't be a great financial loss. We are still going to these concerts, years later.

Jun. 18 2014 11:30 AM
Sue from Westchester Cty

For all older Moms and Dads:
If you are 62 or older and have a child under the age of 18, you can collect SS for yourself and also for the child until they turn 18 or finish HS (if they happen to be 18 1/2 when they finish school). I had my daughter at 49, I am 66 now and she is collecting benefits from SS each month. It adds up and will help to pay for at least one year of college! This is for all older Moms and older Dads who had kids later in life.

Jun. 18 2014 11:20 AM

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