Can you afford to retire?

Question

I am ripping off my question and details, vague and poorly remembered, from PBS's Frontline series. They aired a program on retirement some time ago. (Hope I haven't turned anybody away by mentioning Frontline. Opinions on the show are polarized. I'd like to hear from both sides on this.)
I wish I could give you all the details I found startling the night I watched the program. It's been a while; if you want more, you might want to visit:
http://www.pbs.org/wgbh/pages/frontline/retirement/
You can view the program in it's entirety.
Here's the deal:
Corporations are ridding themselves of costly pensions at the expense of the workers who must "manage" their 401ks. This can be disadvantageous; we formerly had the clout of large pools of money when employers furnished funds to investors to sustain pensions-no more, you've only the few thousand dollars you've saved. Further, we lost experienced finance mangers that were investing our money. I'm not a planner=my money makes less.

I just want to add that somebody on the show said it was kind of unfair for the executives in charge to make the decision to have workers manage their retirements, because most of them pay planners to make their investments. There were more good points to the debate, but this is a start. Do you think the deck is stacked against the average person?

Oh, I forgot, (I know, I go on and on), some people I know say it's better to have 401ks and ownership of your retirement. Do you agree? How about company funded pensions they're not allowed to default on?

Answer 1

Most people with a 401k don't know what lifestyle they will lead when they retire. So what happens when the actuary is no longer calculating your pension benefits. You are left to plan for yourself. If you don't start early (in your 20's) then you start falling way behind. I agree that the system is currently broken but the program didn't talk about the research that has recently been implemented in some 401k plans. 401k providers like Unified Trust have been working to use the average person's apathy against them.The plan starts out a smaller contribution, say 3%, and gradually moves up over the years with your salary increases. So by the time you have been in the plan for about 10 years, you might be contributing 10-12% of your pretax salary. Other plans at least make you opt out of contributing. Usually apathy again takes its course and they end up in the plan by default hopefully with a life cycle fund allocation fund with their time horizon in mind.

Answer 2

Man, your question is all over the place.

First, no I cannot afford to retire now with the lifestyle that I want. I have to make more before I can do that.

Second, we live in a free market economy. When people complain about not being "fair", they usually mean that it is not fair (best) for them. Free markets mean that companies can provide whatever compensation and benefits that attract the best employees. If they don't provide good compensation/benefits, the best employees will go somewhere else. If a company has a pension, that might be attractive to some people. If it is, then they will get some of those people. But there are still companies out there that provide pensions, and you don't see a big line of people standing outside those places asking to work there. So it is up to the potential employee - what is best for them?

As for me, I have no problem contributing to my 401K and managing it myself. 401Ks are not that complicated, the choices are pretty straightforward.

Remember that many companies match 401Ks. In effect, this is like money that would have gone into a pension. They just give it to you to manage, rather than hire people to go out and manage the company's own pension. It saves money for the company and still gives you money for retirement.

What I would love is a company that let me contribute to a 401k and also has a pension. But I don't know of too many companies like that.

Anyway, my answers were all over the place (but so were your questions). Hope they helped.

Answer 3

You are obviously older than 55 years old... (could be wrong though!)

The way the corporate world is going is to put more of the healthcare and financial/retirement planning responsibilities on the employee. It's just the way it it - don't be fustrated just react and play the hand you've been dealt. 401k's and IRA's are great and they afford people over 50 additional contribution benefits...

I'm 36, but I've been actively contributing to both 401k's and IRA's since I was 21.... never had a pension so consider yourself lucky. Anything an employee doesn't have to pay into makes no sense in today's corporate world. I'm typing to long myself.... shoot me a note if you have further questions or additiona comments......

Answer 4

I 'd rather control my destiny than some jerks in DC hand out SS. I do not believe in SS system either because I used to live in communist country that make me plan better

At the 32 I already save in 401k about 62k, 12k in Roth IRA, and 30k in taxable account. I still set aside my 10-15% gross pay toward retirement. Debate or not debate, I have to take care of my self first, worry policy later. I keep saving until one day I can go to work as an option not as an obligation. Who care about policy. Save for yourself first.

Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

Answer 5

properly, Ric has settled maximum of his economic subject matters , which include those jointly with his former spouse, Beth. Ric is financially properly off ... those days opened his economic organisation : "Ric flair economic" in Charolette , N.C. Ric remains lower than contract with the WWE as he in easy words retired from "professional Wrestling" contained in the hoop. he will go back to the WWE in some capicity ; yet to be determined . Ric does no longer want to do saying or be a street Agent as which could save him on the line too a lot .. apparently that he can be operating in PR and /or ingenious .... there is "communicate" that he may even develop right into a "manager" .... it may be exciting if both truly one of his sons got here to the WWE and were managed by ability of Ric .... or so i imagine .

Answer 6

1

Answer 7

I can't, but I am only 16 so I have a while to save

Answer 8

nope you cant

Answer 9

no