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Re: $25,000 is all?
Old 04-05-2006, 06:03 PM   #21
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Re: $25,000 is all?

I find it fascinating that:

a) people are earning more money than their parents did and

b) people are seeing their parents have a comfortable retirement

so they assume they'll be just fine too - because their parents are.

I guess the whole benefits thing is quite invisible to a lot of folks. They really don't get how their benefits are completely different from their parent's benefits.

Gosh - there are a lot of rude awakenings in store for a lot of people!

Audrey
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Re: $25,000 is all?
Old 04-05-2006, 06:58 PM   #22
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Re: $25,000 is all?

a young man at work (24) was $25,000 in credit card debt. he had two cars. a truck for working his previous job and a sedan, i guess for evening wear. for two years i could not get through to him that that is not how you keep money. i finally had to give up the friendship as i couldn't stand to watch that train wreck any longer.
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Re: $25,000 is all?
Old 04-05-2006, 07:55 PM   #23
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Re: $25,000 is all?

Quote:
Originally Posted by donheff
I don't think it makes sense to say 43% of pre-retirement income is correct, or to say 70-80% is correct.*
Also there is the case for some folks where their income gets high in the last few years. I expect I will have more like 55% of my final salary but 75%+ of my salary just a year or two ago. Pretty much adjusted to living on that income level.
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Re: $25,000 is all?
Old 04-06-2006, 07:06 AM   #24
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Re: $25,000 is all?

I admit it just depends on what your retirement plans are.* *I just know that once I've sat at home for 2-4 weeks with no job, and only my hobbies (which i have time for even working) to occupy me, than i'm going to get bored and maybe i'm going to want to go on some vacations.* *Or heck, I might become prone to spending out of boredom.

Also, i dont want to just "run the numbers" and just mathematically be able to get by, by lets say 20% surplus.* IMO, that's just cutting it too close.* If i'm looking at a possible 30 yr retirement, i'm going to want a hell of a lot of safety room.* Can you say overkill, people?* 30 yrs is a long time for a lot of s*** to change the circumstances.

I just see real ER as very risky unless you're just sitting on a literal overkill of capital.* Didn't Bernstein feel this way too?* Anyway, I want all kinds of breathing room when i pull the trigger.* *I cant help myself; i'm financially conservative.

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Re: $25,000 is all?
Old 04-06-2006, 09:18 AM   #25
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Re: $25,000 is all?

Az,

Let me give you a real life example...me. I am under the CSRS system and have been retired about five weeks now. I wasn't prudent in the past, and that's an understatement. I took credit card debt and a mortgage into my ER. I do have a modest six-figure balance in the TSP amd I did retire as a high step GS 15 with 27 plus years. I haven't received my first full pension check yet, but I know it will only be slightly more than 50 percent of my pre-retirement take home. What I did do is change the way I think about spending. I just don't buy "stuff" anymore and the thought of doing that and having to go back to work to support the habit scares the holy crap out of me. So, I don't even think about it. I pay all my bills now as soon as they come through the mail slot; I have set up a slow buy steady repayment schedule for my remaining debt and so far three of the smaller ones have been cleared in only five weeks. I could go on and on, but in short (and it may be too late for that looking at this post), it's more about attitude than you think. You don't need the piles of money the big boys say you do, espcially if you value your time more than your "stuff." My cash on hand has decreased by less than $1000 in the last five weeks and my TSP has increased by a part of that. I am sure I can do even better as I get the hang of this. If I were a cynic, I would say that the big boys want you to think you need 100 percent of your preretirement income because they need you to keep investing. Their pathetic lifestyles depend upon it in moe ways than one. Pay cash, work less and enjoy life!

setab
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Re: $25,000 is all?
Old 04-06-2006, 10:17 AM   #26
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Re: $25,000 is all?

I think you want more padding if you're living off a portfolio instead of a reliable COLAd pension. Also if you're paying the full cost of individual health insurance.

This year I increased my estimated basic expenses in full retirement to catch up with recent health care inflation. They way things are going, I may need to raise it again in another few years. Our port can cover these increases, but it does eat into our padding. I'm not worrying--just watching, investing prudently, thinking of ways to decrease spending, maybe by selling the house and renting here or abroad, maybe buying a cheap retirement condo. Flexibility is key! The way my mind works, if I prepare for the worst, I can stop worrying about it and just enjoy life.

Speaking of enjoying life, tomorrow we head for our friends' cottage on a rural sea island for a weekend of relaxation. All it costs is bringing some food to share with our friends and hoisting the kayak on the roof rack. No internet access, no TV, no stress, just twittering birds, tidal creeks,*a beautiful beach, good company, good food, good wine. ahhh!
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Re: $25,000 is all?
Old 04-06-2006, 10:30 AM   #27
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Re: $25,000 is all?

I'd further say that there are two types of COLA'd pensions. Governement COLAs which are very secure and company pensions which just may go away (like DELPHI, GM etc.)

if you don't have a govenment pension then you just may want to stash a little more in your nestegg.
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Re: $25,000 is all?
Old 04-06-2006, 06:18 PM   #28
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Re: $25,000 is all?

My presumption is that if "they" start making serious inroads on ourCSRS pensions, the economy (and the country) will be tanking so badly that all bets will be off anyway.

I'm not going to lose a lot of sleep worrying about that scenario.

cheers,
Michael

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Re: $25,000 is all?
Old 04-06-2006, 08:24 PM   #29
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Re: $25,000 is all?

Re: Gov't pensions.

It's a matter of time. There is simply no way they will survive while pensions become a thing of the past in the private sector. The national debt will be pointed out. Deficits will be pointed at.

And those pensions will go slowly away.
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Re: $25,000 is all?
Old 04-07-2006, 10:48 AM   #30
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Re: $25,000 is all?

Quote:
Originally Posted by rodmail
Re: Gov't pensions.

It's a matter of time.* There is simply no way they will survive while pensions become a thing of the past in the private sector.* The national debt will be pointed out.* Deficits will be pointed at.

And those pensions will go slowly away.
Rodmail,

What you are saying then is that the government will become just as untrustworthy and dishonest as private business? I think we may already be there, but I sincerely hope you are wrong. The one thing we government pension holders may have going for us is that the pensions would have to be phased out by Congress, and they have them themselves. Sometimes a little blatant self interest helps other people too.

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Re: $25,000 is all?
Old 04-07-2006, 10:52 AM   #31
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Re: $25,000 is all?

Quote:
Originally Posted by setab
What you are saying then is that the government will become just as untrustworthy and dishonest as private business?
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Re: $25,000 is all?
Old 04-07-2006, 11:06 AM   #32
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Re: $25,000 is all?

HFWR,

I know. That's how I felt.

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Re: $25,000 is all?
Old 04-07-2006, 12:38 PM   #33
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Re: $25,000 is all?

I heard a guy on tv the other day saying we can and should use the CA government pension fund to fix the roads in lieu of Arny's bond plans. I didnt hear his plan to pay it back. I'm pretty sure that would happen one of two ways: it doesnt and taxpayers pay for it anyhow.

Unless the moneys in your hands, dont count on it. Then dont count on it too much
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Re: $25,000 is all?
Old 04-07-2006, 07:06 PM   #34
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Re: $25,000 is all?

Quote:
Originally Posted by Cute Fuzzy Bunny
I heard a guy on tv the other day saying we can and should use the CA government pension fund to fix the roads in lieu of Arny's bond plans. I didnt hear his plan to pay it back. I'm pretty sure that would happen one of two ways: it doesnt and taxpayers pay for it anyhow.

Unless the moneys in your hands, dont count on it. Then dont count on it too much

Unless you're a politician, that's called embezzlement, misappropriation of funds or maybe even theft. If you are a politician, it's called business as usual.

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