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Re: Millions Elderly Can't Afford 2 Retire Under Trump Pelosi

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Message 21 of 24

   Apparently some seem to not notice that wages have been stagnent.   Couple that with many private businesses no longer offer a savings / retirement plan and the onus is on the employee.    

    In the way back machine, I did shop for investment opportunities and visited the Investment Brokers, who spoke a language that I did not understand.    Finally one person suggested that I read some books, and they even made suggestions about what I should read before becoming and independent investor via IRA.    

      I doubt many of those who are included in the unable to retire cohort have the time or money to invest or learn about the retirement process.   

 

     Hilariously, my broker once called me and asked if I was interested in investing in derivatives to which I answered why would I invest in something I do not understand.   

 

     Is someone suggesting investing without knowledge - aka  a Madoff scam?  

PRO-LIFE is Affordable Healthcare for ALL .
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Re: Millions Elderly Can't Afford 2 Retire Under Trump Pelosi

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Message 22 of 24

@GailL1 wrote:

Interesting idea, @mickstuder 

But what is keeping these folks from setting up an IRA now and perhaps investing in an FDIC insured CD or putting it in a Money Market Account within an IRA until they have ample funds to establish a retirement investment?

 

As for the government (us) giving them additional funds - that would be very easy and the platform is already there.  All we would have to do is change the IRS Savers Tax Credit to a refundable type IF it is automatically deposited into their established and funded IRA account.  There is their FREE money.

 

I looked at the California program - CALSavers - scheduled to selectively begin this year.  The way I understand it - it is AFTER tax dollars and it establishes a ROTH IRA and they have to commit to saving (automatically) 5% of their pay; unless the employee customizes their plan.  Know why they did it this way?  Because the state was leary of forcing one to save for only retirement when the money might be needed elsewhere.  A ROTH IRA is more flexible in its use without a tax penalty for early withdrawal - contributions have already been taxed and earnings grow tax free.  The only stipulation is that a ROTH IRA's earning must stay in the account for at least (5) years if under retirement age.  Once that (5) years is up, the people can pull the earning these funds have made out and use it for whatever.  Course if they do it that way, no matter the investment, the earnings, if they leave them in the ROTH, aren't gonna grow a whole lot because of the base amount that is growing. Contributions, since they have already been taxed can be removed and used at anytime.

 

I did not see that there was a stipulation on where these retirement savings would be established.

Personally I see a lot of pitfalls in designing it this way - but maybe it will get people use to saving - maybe. 

 

People can establish a retirement account of various types in many different areas - they can pick a simple investment that they can understand and has low fees; even one that is FDIC insured, up to a certain amount at one institution ( $ 250,000).  If they don't understand FDIC insured savings like CD's or Money Market Accounts (Accounts NOT Funds), I doubt if they would understand a Thrift Savings Program either.

 

To me, it is the actual savings part that is the 1st problem to overcome.

Washington state just added a small mandatory payroll deduction for LTC - so do you think that it would be wise to make the retirement savings mandatory and in some retirement program  where money is not so easily accessible since the whole purpose here seems to be about money they will need in retirement?

 

 

 

 


It was impossible for me - the Child of Uneducated - Lower Middle Class Parents - to be able to predict at age 16 when I received my first non cash payroll check - what the Economic & Healthcare Requirements would be for me at Retirement Age 50 years later

 

No way for me to predict what the Cost of Living or Healthcare would be

 

There were No Classes in Mandatory Education Grades 1- 12 that taught me anything about Retirement or what Old Age was all about

 

In fact there were No Classes Designed Specifically to teach me how to establish or manage a Checking or Savings Account - Manage a Personal or Family Budget - how to purchase a Vehicle or Rent a place to live - order utilities - shop for Goods & Services most effectivley & economically

 

My Father felt his responsibility for me & to me ended when I was 16 - Period!

 

My Service in the Military proved to me that my Childhood experience in the USA was the Norm not the Exception

 

However after the Military and using the GI Bill - I saved up a bunch of Cash after buying my First House and I wanted to buy a New Datsun B210 with the Cash

 

I went to the Dealer and he told me I was a Fool to pay Cash for the Car - instead I should put the Cash in some kind of Investment and Borrow the Money for the Car and pay interest on the loan and even a Simple Savings Account at the local bank would pay me more Interest than I would be paying on the Car Loan

 

But then a Funny thing Happenmd - just when I thought I had it figured out - that Savings was the Key - Cash Money Became Meaningless

 

I was busy then raising a Family working multiple jobs - no time to try and spend on learning the rules tips & tricks of the New Financial Environment - Live on Credit - Get Rich Quick & Overnight if Possible

 

So Yes - Government has a Responsibility to either make it Mandatory that Every Child Be Able To Demonstrate A Proficiency with Finance - Insurance - Life Expectancy - Healthcare - Investment - Retirement & there should be some kind of Periodic Financial Capability Testing Requirement along with Periodic Government Assistance Requalification for those incapable of or unwilling to cooperate or demonstrate they are using the skills and resources effectively or they need to be willing to require those that have these skills support & create Government Programs that provide a Minimum Quality of Financial Life Threshold for American Citizens in Retirement

 

 

 

 

 

( " China if You're Listening - Get Trumps Tax Returns " )

" )
" - Anonymous

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Re: Millions Elderly Can't Afford 2 Retire Under Trump Pelosi

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Message 23 of 24

Interesting idea, @mickstuder 

But what is keeping these folks from setting up an IRA now and perhaps investing in an FDIC insured CD or putting it in a Money Market Account within an IRA until they have ample funds to establish a retirement investment?

 

As for the government (us) giving them additional funds - that would be very easy and the platform is already there.  All we would have to do is change the IRS Savers Tax Credit to a refundable type IF it is automatically deposited into their established and funded IRA account.  There is their FREE money.

 

I looked at the California program - CALSavers - scheduled to selectively begin this year.  The way I understand it - it is AFTER tax dollars and it establishes a ROTH IRA and they have to commit to saving (automatically) 5% of their pay; unless the employee customizes their plan.  Know why they did it this way?  Because the state was leary of forcing one to save for only retirement when the money might be needed elsewhere.  A ROTH IRA is more flexible in its use without a tax penalty for early withdrawal - contributions have already been taxed and earnings grow tax free.  The only stipulation is that a ROTH IRA's earning must stay in the account for at least (5) years if under retirement age.  Once that (5) years is up, the people can pull the earning these funds have made out and use it for whatever.  Course if they do it that way, no matter the investment, the earnings, if they leave them in the ROTH, aren't gonna grow a whole lot because of the base amount that is growing. Contributions, since they have already been taxed can be removed and used at anytime.

 

I did not see that there was a stipulation on where these retirement savings would be established.

Personally I see a lot of pitfalls in designing it this way - but maybe it will get people use to saving - maybe. 

 

People can establish a retirement account of various types in many different areas - they can pick a simple investment that they can understand and has low fees; even one that is FDIC insured, up to a certain amount at one institution ( $ 250,000).  If they don't understand FDIC insured savings like CD's or Money Market Accounts (Accounts NOT Funds), I doubt if they would understand a Thrift Savings Program either.

 

To me, it is the actual savings part that is the 1st problem to overcome.

Washington state just added a small mandatory payroll deduction for LTC - so do you think that it would be wise to make the retirement savings mandatory and in some retirement program  where money is not so easily accessible since the whole purpose here seems to be about money they will need in retirement?

 

 

 

 

* * * * * * It’s Always Something - Roseanne Rosannadanna
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Millions Elderly Can't Afford 2 Retire Under Trump Pelosi

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Message 24 of 24

When Millions Can’t Afford to Retire, the U.S. Needs a Better Option

 

Over the past few decades, employers have shifted the financial risks of retirement onto workers.

 

When tens of millions of people all have the same problem, it’s not a failure of individual initiative.

 

According to a recent Associated Press survey, almost a quarter of Americans say they plan to never retire, and it isn’t because they all love their jobs.

 

The United States faces a retirement crisis.

 

Workers have been forced to assume more and more financial risk, and as a result, many won’t have enough to live with dignity when old age arrives.

 

Boston College’s Center for Retirement Research projects that half of workers will reach retirement with too little savings to fund it.

 

When tens of millions of Americans all have the same problem of setting aside too little money for retirement, it’s not a failure of individual initiative. It’s a sign of a structural problem—one that can’t be solved by scolding people to save more.

 

Establishing a secure retirement for American workers is a social good, too. And the United States already has one type of public option—Social Security—designed with that purpose in mind. The venerable program offers a baseline public pension to Americans. No one is required to take it, and anyone can add private savings or a private pension on top of it.

 

Source - https://www.theatlantic.com/ideas/archive/2019/07/public-option-can-ease-retirement-crisis/593722/

 

 

 

( " China if You're Listening - Get Trumps Tax Returns " )

" )
" - Anonymous

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