From: mongiovg (mongiovg@stjohns.edu)
Date: Fri Mar 28 2003 - 11:49:29 EST
A million bucks would probably yield about $70,000 in income per year, which would be supplemented by another $20,000 or so of social security. Since most WORKING people don't bring in that kind of money, you've gotta wonder what's behind the estimate. The million dollar figure presumes a fairly affluent lifestyle: that's what you'd need to live like a middle-manager or a university professor after you stop working. Astonishing how the whole "what you need for retirement" discourse operates on the assumption that no income groups below that level exist or matter. Gary >===== Original Message From "gerald_a_levy" <gerald_a_levy@msn.com> ===== >The following article claims that many financial planners say >that "a $1 million dollar nest egg is a bare minimum" amount >of savings required for retirement for most people in the US. >Yet, the same article claims that, according to the Employee >Benefits Research Institute, "more than 75% of people aged >40 to 59 have less than $100,000 saved towards retirement." > >The advice given in the article is to: > >a) take a part-time job! Yet, if you take a part-time job to >be able to supplement your income then you are *not* fully >retired. > >b) take out a home equity line of credit. And, thereby, run >the risk of losing your home. Also, for this to be an option >-- as the article notes -- you would need substantial equity >in your home. This is hardly an option for most working-class >families who either own relatively inexpensive houses or rent >apartments or houses. > >c) replace your mortgage with an interest-only loan. Doing so, >though, will mean that you won't build equity in your home and >you are "forestalling the inevitable -- at some point your home loan >has to be paid off." Hardly a solution. > >d) "move to a less-costly area"! > >All in all, this advice sounds like "Let them eat cake!". Realistically, >it means that most members of the working-class will have to postpone >their retirement and work more years. This is especially the case >because of the great losses experienced in pension funds and >individual retirement plans in the current recession. Compounding the >problem is age discrimination against older workers. Will this mean >that in the US workers will to a much greater extent die before they >are able to retire? > >In solidarity, Jerry > >http://moneycentral.msn.com/content/Retirementandwills/Playingcatchup/P34754. asp
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