Bad idea to save 10% of your income for retirement?

Question

I am low middle class income and I have to tighten my belt quite a lot to save 10% of my income for retirement. Most americans only save 1% for income. When I retire, I may have a lot of money, but apparently most americans will not. Which means I may be taxed heavily to pay for thier welfare and special programs. I know my Roth IRA is not supposed to be taxed again...BUT they have 30 years to change the rules and it could get taxed! Is there a way to ensure to my nest egg pays out to only myself when I am retired? Thanks!

Answer 1

You are on the right track. you are responsible for your own life. do not look back at the people around you. you have to take care of your self first before others. In the mean time, Learn how to invest properly. I also set aside 15% of my pay to my 401 k too. I used to live in communist government, I had to take care of myself first.I think the social security system is a scam, out of date, need to change. Since FDR, 36 people support 1 person, now is 4 support 1, baby boomer retired pretty soon, 2 will support 4

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

At the age of 32. my 401k is amassed 73,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 2

It is unlikely the laws will change to tax your authorized Roth withdrawal if you already paid taxes up front. Consider this on the first question. If you save 10%, it compounds exponentially more than the 1%. Even if it was taxed at the end, the 60-70% you had left over would still be excessively more than the guy who set aside 1% and relies on welfare or social security.

Answer 3

Continue your great savings habits, and quite worrying about what the rest of the population is doing. Yes, it is very likely that there are problems coming with the miniscule savings that many have for retirement, but you personally cannot control that. The best you can do is make effective choices for yourself, such as saving as much as comfortably possible for retirement and investing it in opportunities which offer great returns.

Answer 4

You're paranoid! And I don't blame you. They do seem to change things up alot however I doubt that the Roth will be taxed again and if it were it'd probably be at a small percentage rate. I think the savings rate is actually -1% though

Answer 5

A Roth IRA is great. I would do that if I were you. My only prob with 401K like accounts is that all the money that can be accumulated through saving cant be touched penalty free for a certain age.

Answer 6

the more you save the more you have as a nest egg...
there are ways to keep taxes low and anyway you are still ahead in the game.
I'm a boomer and many of my friends have to keep working because they failed to save when they had the chance so be glad you have the chance.
If your employer matches your contribution or adds 5o cents for each dollar you put in you are giving yourself a raise too!!!
so save as much as you can... misfortune and disease can hit at any time and having a prudent reserve is what makes or breaks people.