Current Events > is "saving for retirement" a big scam?

(+) Yeah! (+)

so you can retire at what, 65? and lets say you live till your mid eighties so another 20 years.

and each year, you want to keep up the lifestyle you had while working, which for me is about 80-90k a year (for me and my wife)

90k times 20 years is 1.8 million dollars.

im in my thirties so i have 30 years to save up to what will grow to be almost 2 million.

so i have to save 1500 dollars a month

IN WHAT FUCKING WORLD

DO I HAVE 1500 DOLLARS TO JUST GIVE TO A BANK AND SAY "lmao i dont need it"

I NEED TO EAT. SHITTY HOUSES COST 1 MILLION DOLLARS. MY 5 YEAR OLD CAR SOLD AT ITS ORIGINAL MSRP

THIS SHIT IS A SCAM

AND REPUBLICANS WANT TO CANCEL SOCIAL SECURITY!?!??!?!?!

Compound interest. Learn what it is.

Im sorry you cant delete this topic anymore but please lock it

Where is that $1500 a month coming from?

emblem-man posted...

Where is that $1500 a month coming from?

https://www.nerdwallet.com/investing/retirement-calculator

https://gamefaqs.gamespot.com/a/user_image/2/3/6/AAOKgXAAEHfE.jpg

Compound interest bro.

BewmHedshot posted...

https://gamefaqs.gamespot.com/a/user_image/2/3/6/AAOKgXAAEHfE.jpg

that doesnt look sustainable

BewmHedshot posted...

https://gamefaqs.gamespot.com/a/user_image/2/3/6/AAOKgXAAEHfE.jpg

SHRlKE posted...

Compound interest bro.

He's already accounting for compound..that's what he's saving $1500(18k a year) a month

don't you usually put it in stocks or an index fund or whatever

I have 0 saved for retirement so idk >_>

emblem-man posted...

He's already accounting for compound..that's what he's saving $1500(18k a year) a month

What? Use a calculator like this.

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

It just means you are living past your means now and what your expectations are in the future. Instead of living on a 80-90k a year lifestyle, embrace the $70K a year lifestyle.

BewmHedshot posted...

https://gamefaqs.gamespot.com/a/user_image/2/3/6/AAOKgXAAEHfE.jpg

For the first 36 years it went up a mere 200 points. Then in the following 30 years it went up 2000 points. Whos to say in the next few decades itll be stagnate or increase dramatically. Im not saying investing in the market is a bad thing but lets not act like its guaranteed. Which most financial gurus keep saying.

Yea it assumes you make it to 60-80. You can just be at wrong place and wrong time and get killed in a mass shooting or have a heart attack.

Norman_Smiley posted...

It just means you are living past your means now and what your expectations are in the future. Instead of living on a 80-90k a year lifestyle, embrace the $70K a year lifestyle.

*gets a paycheck*
"Ah, my means. I guess I'll buy some dinner--"
"NO! NOT THATS ABOVE YOUR MEANS!"

thats why i ask if its a scam. my hard earned money in my hands, is not enough! instead i gotta fork over a big chunk, REQUIRED BY LAW, into the stock market, where they just fucking lose it all and go "ahh oh well you know. inflation?????"

we should KEEP IT. SPEND IT. LIVE WITH IT AND THEN HAVE A SOCIAL SAFETY NET FOR THE ELDERY WHEN WE'RE OLDER

like i dunno SOCIAL SECURITY DOES

What are your monthly expenses?

Also ideally, if the money is in the market in some way (obviously not fully in stocks as we've seen from this year, stocks can go down), you could withdraw some amount of money without your principal amount actually decreasing.

If you have 1 million, and you withdraw 40k a year, or 4%, if the market goes up by at least 4%, you could withdraw 4% , without the principal 1 million decreasing

_BlueMonk posted...

*gets a paycheck*
"Ah, my means. I guess I'll buy some dinner--"
"NO! NOT THATS ABOVE YOUR MEANS!"

no, it just means that like 95% of your meals should be made at home rather than eating out for 30% of meals.

Norman_Smiley posted...

no, it just means that like 95% of your meals should be made at home rather than eating out.

100% of my meals are made at home. i haven't even bought an avocado in months and i haven't set foot in a starbucks in years DONT EVEN START

Your actual expenses should hopefully decrease though...assuming you have a house now that's paid off in 30 years. That's a big IF though.

DarkProto05 posted...

For the first 36 years it went up a mere 200 points. Then in the following 30 years it went up 2000 points. Whos to say in the next few decades itll be stagnate or increase dramatically. Im not saying investing in the market is a bad thing but lets not act like its guaranteed. Which most financial gurus keep saying.

Herp derp "a mere 200 points". It went from 15 to 200. That's like a 13x return. Then in the next 30 years it went up another 10x. Thanks for making my argument for me.

emblem-man posted...

Your actual expenses should hopefully decrease though...assuming you have a house now that's paid off in 30 years. That's a big IF though.

i think that will only happen if instead of pumping 1500 dollars into a retirement account, i instead spend that all on scratchers and hope i win big

_BlueMonk posted...

you want to keep up the lifestyle you had while working

doubt.

no way you'll have the same tastes in all aspects of life now as when you reach retirement age since both body and mind will change.

of course, you might find replacement activities that bring you as much joy and end up costing the same but even then i doubt it.

DarkProto05 posted...

For the first 36 years it went up a mere 200 points. Then in the following 30 years it went up 2000 points. Whos to say in the next few decades itll be stagnate or increase dramatically. Im not saying investing in the market is a bad thing but lets not act like its guaranteed. Which most financial gurus keep saying.

If it does fuck up then there are probably going to be more things to worry about than your pension tbh lol.

If it keeps going up and you don't invest you're probably going to be fucked.

If you do invest and it doesn't go up then you (and everyone else probably) are fucked anyway.

AsucaHayashi posted...

doubt.

no way you'll have the same tastes in all aspects of life now as when you reach retirement age since both body and mind will change.

of course, you might find replacement activities that bring you as much joy and end up costing the same but even then i doubt it.

are you saying i wont be watching kpop videos when im 70?

LIES

_BlueMonk posted...

are you saying i wont be watching kpop videos when im 70?

LIES

who was that high-pitched voice anime actress girl you once were in love with?

bet you're over her by now.

AsucaHayashi posted...

who was that high-pitched voice anime actress girl you once were in love with?

bet you're over her by now.

i will never stop loving Sugabaybee

_BlueMonk posted...

100% of my meals are made at home. i haven't even bought an avocado in months and i haven't set foot in a starbucks in years DONT EVEN START

Avocados where I am are on sale for $1 every other week it seems. Why is that a luxury item?

As for retirement, the assumption is that you spend less when you retire. Less wear on you car and less spent on gas since you dont have to drive to work.
And you may move to a lower cost of living area to save that way.

Sounds like you need to move or both you and your wife get better jobs then. $45k a year can be gotten in most places, move to Cleveland and your $90k a year will take you much further.

emblem-man posted...

Also ideally, if the money is in the market in some way (obviously not fully in stocks as we've seen from this year, stocks can go down), you could withdraw some amount of money without your principal amount actually decreasing.

If you have 1 million, and you withdraw 40k a year, or 4%, if the market goes up by at least 4%, you could withdraw 4% , without the principal 1 million decreasing

S&P returns 7% on average. But when you retire you don't even want to be in stocks you want to be in bonds, which are extremely safe investments and return on average 4%. It's basically guaranteed.

Fun fact, originally retirement was supposed to be supported by a three legged system. One leg is a 401K, one leg is social security, and one leg is pension.

Pensions don't exist anymore, SS is crap, and good luck with the 401K.

All around very depressing.

spanky1 posted...

Fun fact, originally retirement was supposed to be supported by a three legged system. One leg is a 401K, one leg is social security, and one leg is pension.

Pensions don't exist anymore, SS is crap, and good luck with the 401K.

All around very depressing.

401k didn't exist until the late 70s.

_BlueMonk posted...

thats why i ask if its a scam. my hard earned money in my hands, is not enough! instead i gotta fork over a big chunk, REQUIRED BY LAW, into the stock market, where they just fucking lose it all and go "ahh oh well you know. inflation?????"

we should KEEP IT. SPEND IT. LIVE WITH IT AND THEN HAVE A SOCIAL SAFETY NET FOR THE ELDERY WHEN WE'RE OLDER

like i dunno SOCIAL SECURITY DOES

Wait so are you pro social security or not

bc you kinda swing back and forth in this post

TC what are your monthly expenses? I know if I personally had $90k a year I could live a lovely life in most of America, but that's me and my expenses. What are yours?

BewmHedshot posted...

Herp derp "a mere 200 points". It went from 15 to 200. That's like a 13x return. Then in the next 30 years it went up another 10x. Thanks for making my argument for me.

Like I said its a good idea to invest but dont act like its guaranteed. Now go back to selling your financial courses and rip people off Mr. Guru.

SHRlKE posted...

If it does fuck up then there are probably going to be more things to worry about than your pension tbh lol.

If it keeps going up and you don't invest you're probably going to be fucked.

If you do invest and it doesn't go up then you (and everyone else probably) are fucked anyway.

I agree with this. Its better to take a chance at investing than not. All Im saying is lets not act like its guaranteed.

Yeah I'd rather just spend my money while I'm young and enjoy life.

hopefully your 401k invests in good stocks that have appreciated in value in 30 years....

but you're right Republicans are evil

Infinite Growth

We all must make sacrifices so corporations can profit!

I'm just gonna live in a shack in the woods and die of a tooth infection. It'll be a peaceful retirement.

_BlueMonk posted...

*gets a paycheck*
"Ah, my means. I guess I'll buy some dinner--"
"NO! NOT THATS ABOVE YOUR MEANS!"

thats why i ask if its a scam. my hard earned money in my hands, is not enough! instead i gotta fork over a big chunk, REQUIRED BY LAW, into the stock market, where they just fucking lose it all and go "ahh oh well you know. inflation?????"

we should KEEP IT. SPEND IT. LIVE WITH IT AND THEN HAVE A SOCIAL SAFETY NET FOR THE ELDERY WHEN WE'RE OLDER

like i dunno SOCIAL SECURITY DOES

you also need to be mad at Republicans and Corporations because wages in America have been stagnate, if not falling over the decades

I mean I know the economy is in the bin right now, but if your living off of 90k a year, and your complaining about keeping up your lifestyle, learn to change your lifestyle to be much simpler. A home costs 1 million dollars? ok, then maybe don't look at buying a house just yet. I had to change my lifestyle to adjust to growing costs. Buying in bulk, shopping used instead of new, finding free video websites instead of paying for Netflix and whatnot.

Learning to be crafty. I made a charcoal grill out of a flower pot from the dollar store and an old baking grill. Cost me maybe 10 dollars, works as good as any 50 dollar grill. I also started learning things online to improve myself and get me a higher paying job. I don't work right now for medical reasons, but I have enough resources to pay my bills for the next couple months.

[LFAQs-redacted-quote]


I don't live in the states. I live in Canada.

Norman_Smiley posted...

401k didn't exist until the late 70s.

Personal savings, I believe it was, I just called it 401K.

Yolo everything on credit

Trick is to move to the bahamas or some third world island where your money is more than sustainable.

Depends. I hear pensions were a boon of benefits.

Now we're forced to donate to the stock market to fatten the wealthy's already engorged pockets. I don't like the 401K and Roth IRA system, but it's what we were shoved into. Thanks, whoever put that on me.

To be honest, I can't do this for 30 years and have already tapped out. Wouldn't be surprised if I get fired in the next year. I just can't. And to expect us to waste our youth and retire at an age where we're old, decrepit and swimming in medical bills with only 20 years expected left if we're lucky is a shit deal.

fuck no. i'm set to retire by 50, if not sooner.

do you really think you'll need 90k (or the equivalent of) when you retire, though? think about how many things you pay for now that you won't have to pay for when you're that age.

Yes, investing is a scam. Thats why every rich person you know keeps their net worth in cash.

you can do whatever you want with your money. but if you reach old age and realize youre gonna have to work until you die or live a life of relative poverty on social security, assuming thats still a thing, just know you have yourself to blame

if you think a retirement account is a scam I cant wait till you figure out the math on the return on investment you get from paying into social security your entire life, lol.

I wish instead of SS we had Singapores system that you're essentially forced to save out of pocket individually for retirement.

So people who worked hard but dead end jobs into their 60s will at least have a few hundred thousand at a minimum for retirement. Rather then tiny checks to barely live off and if they die sooner then expected have nothing to pass on to younger relatives.