401k and SS

The idea that ss won't be around in 30 or 40 years is a scare tactic designed AFAICT to make it possible to abolish SS (and presumably give large tax cuts to the wealthy).

SS has been 30 years away from "bankruptcy" for the last 30 or 40 years, and even if it "runs out" of money, it should still be about to cover 70% or more of projected benefits from cash flow. The people who designed it and updated it weren't stupid-- they took into consideration things like life expectancy at retirement etc.

Anonymous wrote:I'll have $10M in my 401k. Why do I need anything else?

Because that $10M will actually be closer to $5M after taxes. You've deferred paying taxes on this money by putting it into a 401K or IRA...unless its a Roth but based on the amount you have in your 401K I'm guessing you don't qualify for a Roth.

Our 401(k)s and my husband's pension, plus our taxable investments.

I'll have $10M in my 401k. Why do I need anything else?

Anonymous wrote:I am confused as too why you consider the equity in your home as part of your retirement. You need a home in retirement and most people stay or move to equivalent price point.

Income needs go down in retirement if you own your own home. Having a paid off mortgage in an area where rent is $2k a month is the equivalent of owning a bond that throws off $24k a year, tax free. Additionally, many people move to lower priced homes in retirement allowing them to liquidate equity for living expenses, also tax free (within limits).

Anonymous wrote:I wouldn't count on ss being around after the boomers retire

As someone under 30, I agree and it's terrifying. I had the luxury of starting to invest in a 401k and Roth IRA early, right out of college, but the uncertainty of inflation, future tax rates, the market, etc. is still so daunting and pensions are barely even a possibility any more. A lot of my generation will likely have to work until they die.

I am confused as too why you consider the equity in your home as part of your retirement. You need a home in retirement and most people stay or move to equivalent price point.

Anonymous wrote:

Anonymous wrote:Social Security will be the biggest piece. Between the house and 401k we'll probably have about $500k, which will go pretty fast when our health goes south. No inheritance on the way.
I'm 50 and already having to start figuring out the Medicare landscape.

PP - Do you have a long term care policy? IF your health does go south you can kiss all that money goodbye so you might want to consider it. Also your $500K is going to be closer to $250K after the IRS gets their hands on it. And you social security will be taxed too.

not trying to alarm you, plz understand. just some thoughts I wanted to share as I am trying to figure this pic out for us as well.

Oh, I know I'm fucked. at this point our health issues are making getting long term health insurance tough.

Anonymous wrote:
401(k)
TSP
Real estate
Small Govt. pension
Not really counting on SS. We are in our early 30s.

Pretty much this including the ages, minus the 401(k), we have 2 TSPs.

Plus our own savings beyond that which we have earmarked for retirement.

I wouldn't count on ss being around after the boomers retire

SS
Roth IRA
Real Estate-2 condos paid off
(planning to move to my farm in Europe where $1000 a month to live on is plenty)

Whatever retirement plans our jobs offer us - currently 401K for my husband's employer and Simple IRA for my PT gig
IRAs (Roths and rollovers of previous employer run plans)
Life Insurance
Other investments, including real estate
Hopefully some inheritance?

401k
Investments
Home
Life insurance
Inheritence
Generation skipping trust
Business investments
Luck

Anonymous wrote:Social Security will be the biggest piece. Between the house and 401k we'll probably have about $500k, which will go pretty fast when our health goes south. No inheritance on the way.
I'm 50 and already having to start figuring out the Medicare landscape.

PP - Do you have a long term care policy? IF your health does go south you can kiss all that money goodbye so you might want to consider it. Also your $500K is going to be closer to $250K after the IRS gets their hands on it. And you social security will be taxed too.

not trying to alarm you, plz understand. just some thoughts I wanted to share as I am trying to figure this pic out for us as well.

401(k)
TSP
Real estate
Small Govt. pension
Not really counting on SS. We are in our early 30s.