Poll: What's the most likely threat to YOUR retirement plan?

[Midpack]

Just the poll naturally stemming from the related "ruinous" thread a few days back.

If you don't like the choices, they came directly from the other thread...

[aaronc879]

Not being physically able to do my current job. If I can't do this job I have a very limited number of jobs i'm qualified for and physically able to do. I'm not near FI so I need income for many more years.

[jfn111]

A long Bear Market coupled with high inflation would hurt.

[6miths]

Most of the threats I see are personal. Death, depression, disability, dementia, divorce, descendants, despair, disease, disempowerment, and so on...

[Goonie]

When it comes to life, I'm a die-hard optimist. So about the only thing that would have a major detrimental impact on my retirement is my own death. YMMV

[Mulligan]

If some A-hole cuts my pension.


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[mickeyd]

Because of our military and VA pensions, I cast my vote for the last selection. Even if we have a bad situation occur, I don't see any long-term negatives that we can not survive.

[38Chevy454]

I figure that I am able to deal with personal issues, as to most extent they are within my control. Sure they could make things difficult or significantly change plans. However, as sustained period of recession or depression with high inflation would make it the most threat to me. The financial impacts from recession and inflation are essentially beyond my control.

[W2R]

Obviously New Orleans is subject to devastating hurricanes and their perils, but even so I voted for hyperinflation. I could recover from complete hurricane destruction of my home and all contents easily even if insurance reimbursement disappointed me or failed me (since they are not worth much), but hyperinflation?

From Wikipedia, Hyperinflation in Zimbabwe - Wikipedia, the free encyclopedia

Quote:

Zimbabwe's peak month of inflation is estimated at 79.6 billion percent in mid-November 2008.

I lived through the inflation we had here in the US during the 1970's and 1980's, and that was tough. I don't personally believe that the CPI would keep up with over a million percent inflation (so much for our COLAs, TIPS, etc). I just don't see how any of us could feel confident if faced with 79.6 billion percent inflation in a month.

So while it is unlikely, and so possibly not what you are looking for, I still think hyperinflation is so devastating that it is the greatest of those perils listed. The most probable is probably something much less disastrous and easier to overcome, like identity theft.

[Rustic23]

I voted Hyperinflation also. We have enough COLA adjusted pensions to keep up, however, they only adjust once a month. In a hyperinflation market, we may need a daily adjustment just to survive, and I have no faith government could keep up with that type of a situation.

[Midpack]

Quote:

Originally Posted by W2R So while it is unlikely, and so possibly not what you are looking for, I still think hyperinflation is so devastating that it is the greatest of those perils listed. The most probable is probably something much less disastrous and easier to overcome, like identity theft.

I'm a little surprised by the voting so far, but I wasn't presuming or "looking for" any particular response(s), other than maybe asteroids finishing low on the poll. Thanks for your thoughts/vote, clearly a significant number of members agree with your POV.

[Options]

Was looking for the dreaded sequence of returns option for those of us on the cusp of ER. Surprised to see at this point 54% see something of a personal nature impacting them. Other than perhaps an unexpected serious health condition, personal is no issue for me.

I already have lots of experience with zombies living in a city loaded with them (lost angeles) so they pose no threat...

[Midpack]

Quote:

Originally Posted by Options Was looking for the dreaded sequence of returns option for those of us on the cusp of ER. Surprised to see at this point 54% see something of a personal nature impacting them. Other than perhaps an unexpected serious health condition, personal is no issue for me.

Sequence of returns risk seems unlikely without depression/recession so I'd lump it in there. But I took the options from the other thread, and I don't remember anyone mentioning SORR specifically.

I wasn't expecting Personal to be the leading threat either, but then that's why I did a poll, to find out what others think...

[6miths]

With medical problems being the leading cause of personal bankruptcy and the cost of health care going up by the moment, I would have expected 'personal' to be the leading cause. Many of the widespread economic problems will be shared by everyone so tend to be less personally devastating. Even in Zimbabwe and other places with significant inflation, life goes on. People are resourceful and ingenious. Barter economies and other adaptations arise that allow things to function.

[Walt34]

While I picked hyperinflation, almost any of the other options would do a number on my pension plans too.

Getting very sick and just lying in bed is not in my plans.

Neither is getting bombed in a war.

Comets, asteroids and zombies (!?) would pretty much screw things up too.

Weather extremes would make life unpleasant as well.

[NW-Bound]

Quote:

Originally Posted by 6miths With medical problems being the leading cause of personal bankruptcy and the cost of health care going up by the moment, I would have expected 'personal' to be the leading cause. Many of the widespread economic problems will be shared by everyone so tend to be less personally devastating. Even in Zimbabwe and other places with significant inflation, life goes on. People are resourceful and ingenious. Barter economies and other adaptations arise that allow things to function.

That's also how I voted. Other than financial hardship, serious illness may bring about such reduction in quality of life to make you truly miserable. Or you may not have any life at all, to spare you the worry of inflation.

If one's retirement is reasonably funded and comes from more than one source, even a serious reduction in wealth should not cause you to have to claim a spot under a bridge. Most people are resilient, and can adapt to having less if it should happen.

Having less to spend does not have to mean one's life is doomed to wretchedness. One can park an RV in a New Mexico state park and have electric and water hookup for a few bucks a day. The locations are nowhere near any movie theater or shopping mall, let alone fancy restaurants or nightclubs, but if one is into living in open spaces and enjoying nature he/she would not think of it as reduction in life quality.

[RAE]

Quote:

Originally Posted by Options Surprised to see at this point 54% see something of a personal nature impacting them. Other than perhaps an unexpected serious health condition, personal is no issue for me.

I'm not at all surprised that personal is the leading vote-getter. Family issues are easily the biggest threat to my retirement. My wife and I can control our expenses and our overall financial situation, but we can't control our daughter's (my step-daughter) financial situation, which affects us whether we like it or not. Simply cutting off our relationship with her is not an option, due mostly to the two grandkids, who would otherwise be in trouble (the fathers of each kid are not involved in their upbringing). We obviously can't run her life for her (though she needs someone to do it), but we also can't just walk away and ingore it, either (which I would be tempted to do, were it not for the two grandkids). So this situation will probably go on for decades, whether we like it or not. It's impossible to plan our yearly expenses when we just don't know from one week/month to the next what the latest financial setback will be for the step-daughter, and how much it's going to cost us. I'm assuming that at least a few others can relate to this type of situation??

[48Fire]

Not in the poll that I could see, but the biggest threat to me was a layoff, especially late in my career. The other items are mostly out of my control, and I can mitigate some of the recession concerns with a lower risk allocation