Reply to Why are people obsessed with putting $$ in retirement?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If you start putting money away with every paycheck when you're young, you will be used to having that money taken out of your paycheck just like you are used to having money taken out for taxes.  There is no obsessing about saving for a retirement you just do it.  Over the years that money adds up.  You also make your house payment every month - at first it seems that the balance barely even goes down. But over time those payments add up until you eventually pay your mortgage off and own your home free and clear.

You may not have 5 million in your bank account when it comes time to retire but you will be glad that you bothered to save something.  104K/160K is not a small chunk of change.  The ones who will really be hurting are the ones who bothered to save nothing at all.

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For retirement, $160k is extraordinarily small.  Using the 4% rule (which, in today's low interest rate environment, likely is too aggressive), that yields $6400 per year, or less that $535 per month.  [/quote]

Average retired worker is getting a check for roughly $1368/month (Motley Crew) so if they are also getting $535/month in investment income, that adds up to $1,903/month.  If they also have a pension and their home paid off, they aren't doing too badly.[/quote]

[b]SS and pensions are taxed[/b].  People still have to pay property taxes, the average nationwide is $2,100/yr.  My mom pays $300/mo in supplemental insurance and still has pretty hefty co-pays and prescription costs. living on $2,000 a month IS most definitely doing pretty badly.[/quote]

At least for SS there is a floor below which SS is not taxed.  Also, if both parties in the couple worked that SS check would be doubled.
[/quote]

Yes, of course you're right.  If you take this person who is getting $1903 in income (SS and investment) per month, and assume that (i) he has a paid off house, (ii) a pension, and (iii) a spouse who receives the same social security benefit, he's doing fine!

If you also assume that he has 42 lbs of gold bullion buried in his garden, he'd be doing great.  Or maybe assume he's the long lost Rockefeller scion, and unbeknownst to him has a trust at his disposal - if someone tell him about it, he's on easy street.  So everything is fine![/quote]

I was a NP and was just correcting the statement that SS would be taxable.  [/quote]

Yea, and in your scenario it's even more likely it would be taxed with two recipients and a joint return.[/quote]

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