If you were retiring in 2035, & you had about $250,000, would you be poor?

[Bouncy Ball]

Obviously we don't know about the cost of living in 2035 (or can we project?).

But say you were 65 or 66 years old in 2035 and you wanted to retire. You've got about $250,000 in your 401K. You don't have social security (because of that bastard bush) to rely on. The only good thing that came out of the "rape of social security," as it is now known, is that people STILL haven't elected another republican president. But it's been a mess to fix and a quarter million is what you've got.

Assuming you live into your late 80s (fingers crossed), how would you do? Comfortable? Barely making it? Eating cat food and fantasizing about holding up banks? Or pretty well?

[oppositionmember]

1. It would just run out pretty fast...

And then you'd have nothing. Unless you had a house to sell. Then when you spent that money you'd also have nothing.

[rooboy]

2. If you're only going to live for a month, no.... 30 more years... yes.

eom

[Texasgal]

3. Eating cat food...

Sadly, I have come to realize that I will work until I die, I will not be able to afford not too. Thanks shrub!

[nothingshocksmeanymore]

4. In America you would be poor...in Mexico or Costa Rica

that kind of money would go a long way..you could probably live on it for 20 years...but here considering you'd need to pay for food, shelter, clothing, medications and supplemental health insurance, you'd be putting Skippy on toast and calling it pate...and that is what will happen.

[Blue-Jay]

5. I'd bet it all on black at Harrah's.

That'll work just about as well as Bush's fucked-up plan for raping old folks.

[BlueHandDuo]

6. You'd be poor NOW...

...if you retired with only $250,000!

Don't think it's going to be better 30 years down the road.

[Bouncy Ball]

7. ...

:cry:

Well, I described the situation my husband will be in when he retires. Without going into any details, MY retirement is in a state employee fund, which they ARE doing what bush wants to do with SS. They are investing it in high risk mutual funds with extorbitant fees and WE'RE paying for it.

Which means MY amount at retirement will be markedly less than his $250,000.

This is all quite sobering. Especially considering the fact that we have both worked since we were 16, I have a college degree and will have a masters in 2007.

For any lurking right wingers out there, if you think you are immune, you are WRONG. Unless you are independently wealthy you will be up the SAME shitty creek without a paddle as we are. And to think, you voted for this, you assholes.

You can't say I haven't worked hard and my husband hasn't worked hard. And I never stayed home with my daughter either. I was too afraid of the loss of income (we couldn't afford it).

[Bouncy Ball]

8. I just figured out that $250,000 spread out over 20 years

(dying in your mid to late 80s) is $12,500 a year. That's not including any interest it would still be making.

Um. That's not very much even now, like someone else pointed out. We'll own our home in 26 years, just in time for retirement.

But by then, what will property taxes and homeowner's insurance be like?

I need to stop doing this to myself. I'm freaked out.

[Worst Username Ever]

9. It would be worth about 150K in today's dollars

based on 3% inflation, which is the average that is generally used by those in the field. You certianly would not be rich. Keep in mind you'll be paying taxes on earnings, too.

[Bouncy Ball]

10. YIKES!

That's it. Mr. Bouncy simply needs to work 80 hours a week. Start socking it away faster. This will not do. We'll be standing in soup lines at this rate.

Maybe I need to get a second job and put that money straight into savings.

[YellowRubberDuckie]

11. Everyone's right, unless of course our economy fails...

then that $250,000 will be worthless. Sorry to be the naysayer.
Duckie

[Commie Pinko Dirtbag]

12. 5% depreciation in 30 years means you'll have 21.46% of the original value

So the 250 grand will buy what a bit over 53 grand buy now.

This, of course, assuming a 5% average inflation all the way through. Reality will probably vary wildly from that, but don't expect it to be worth more than half its present value.

[Bouncy Ball]

13. You're just TRYING to make me cry, aren't you?

Ok. The child needs to get rich somehow. Hmmm.

(In my 20s, I never thought about this stuff. It was SO far off...)

[Bouncy Ball]

14. Ok what about $500,000?

Maybe if he has that much? And I have about $200,000? I guess we'd be ok then?

I think we are long overdue for a visit to a financial planner. I just always find them so smarmy and of course they are out to sell you their products, so I always second-guess their advice.

[Commie Pinko Dirtbag]

17. I know John Excrement about investment options in the USA

But I'd run from anything even remotely related to the stock market like the plague.

If you were in Brazil, I'd say savings account. They're run by banks but guaranteed by the government. Reliable all thye way from before the military dictatorship to the Lula era. And they DO get you interest, always, even if sometimes inflation outruns it. But it beats the couch by a mile.

Oh, and the Real is gaining on the dollar. (Who isn't?)

Maybe some kind of Euro- or Pound-denominated foreign bonds? KEEP IN MIND I AM A COMPLETE DUMMY AND MAY BE TALKING OUT OF MY ASS. CONSULT WITH PEOPLE WHO KNOW THIS STUFF.

[LeftyMom]

15. Have I bought a home?

If that 250K is going to rent it will go away fast, unless there's a heck of a lot more low-income housing in 2035 than there is today. If I had a home and or lived in a city with decent mass transit I could afford I could stretch that money out a while, but probably not for decades. $12,500/yr (I'm working in 2005 dollars) would qualify one for food stamps, so assuming I had a secure home and reliable transportation I'd probably do okay. If I didn't have a home (or if it needed a lot of help) I'd be couchsurfing at Leftykid's I guess.

I think the big question is health care costs. Am I paying hundreds of dollars a month out of pocket or have we finally got our collective shit together and gone single payer? If we're single payer and I'm a homeowner (or made other arrangements I can be satisfied with long-term) I might do alright. If the health care system hasn't changed I'd better not get sick!

All of the above assumed I'm single, for convenience.

[Bouncy Ball]

16. Um, yeah, we'll own our home (which means we have to

stay in Texas for all eternity...sigh).

Home owners, no mass transportation here and I can't see it happening anytime soon.

I didn't even think of healthcare costs. I have a feeling we'll be some of those elderly on Medicaid and food stamps. What's really stupid about it is, I will be a highly educated elderly woman on those things and BOTH of us will have worked our entire lives! We've never collected unemployment, never been on welfare, never used food stamps, disability, nothing. Not that there's anything wrong with it when people do (it's there to help people, after all), but we have never used any of it.

And that's assuming Medicaire and foodstamps are still around.

Ok that's it, I'm reading a fluffy book and eating my dinner now! Sufficiently scared the crap out of myself. Thanks guys!