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Jonathan Clements: You May Need Less Money Than You Think For Retirement
A couple of peanut gallery comments (older definition of PG): One might be equally suspicious of any prognostication lacking the adverb ("may"), considering the accuracy of such headlines. He probably could have skated with "why you might not..."
Secondly, The ordinary folks around whom I grew up aren't represented on MFO. On contemplation, I must admit that that is what they did ("make do"), from lack of other options. OTOH, my parents were quite surprised when they inherited stock from my mousy maiden aunt who served for years as a telephone operator for Ma Bell, until she was automated into a nursing home aide. Of course, they have no idea what to do with the stock.
One might be equally suspicious of any prognostication lacking the adverb ("may"), considering the accuracy of such headlines. He probably could have skated with "why you might not..."
You SHOULD always spend less Money in retirement than when you were Working, having a mountain of bills/payments, were raising a family and having the "Good Times'... What are you going to spend money on Now? Any Ideas
(edit) Let's add first-class seating in flight. Than a decent rental car at destination with leather, rag-top and some guts under the hood. Wonderful way to burn through retirement savings.
Article not available to me, but based upon a lot of intense recent research and direct observation I can tell you that the "big if" is whether or not you will require an extended stay in a nursing home. (Think "dementia", in particular.) Last year I spent lots of time checking out facilities and doing the math with a close relative whose spouse had reached the point where she could not reasonably continue to keep him at home. 1.) These places are very, very expensive -- at least the ones you would want to have a relative staying in. 2.) New ones are springing up everywhere, some stand-alone, others associated with upscale "retirement communities", -- virtually all are for-profit enterprises. The investors building these facilities are not stupid, they see the numbers: more people living longer = more people with dementia etc. And with excellent care, you can live a long time with dementia. ( Not to mention that the rates of long-term care insurance are currently poised to skyrocket off the map.)
Having been through all the financial scenarios, I can only conclude that if you are in modestly comfortable (but hardly "rich") circumstances, you can live a good life in retirement and leave something to your heirs -- as long as you (and your immediate dependent(s)) avoid long-term disability. And that is the big crap-shoot.
Comments
No problem Ted. I find Clements generally worthless anyway.
However, any time you see the word "may" in the byline, be suspicious. You may need less. But, you may also need more.
Amen, bro.
Regards,
Ted
http://finance.yahoo.com/news/why-you-will-need-less-money-than-you-think-for-retirement-140914778.html
Secondly, The ordinary folks around whom I grew up aren't represented on MFO. On contemplation, I must admit that that is what they did ("make do"), from lack of other options. OTOH, my parents were quite surprised when they inherited stock from my mousy maiden aunt who served for years as a telephone operator for Ma Bell, until she was automated into a nursing home aide. Of course, they have no idea what to do with the stock.
http://www.moneymanifesto.com/you-may-need-more-than-four-million-dollars-to-retire-no-joke-7587/
"Good Times'...
What are you going to spend money on Now? Any Ideas
(edit) Let's add first-class seating in flight. Than a decent rental car at destination with leather, rag-top and some guts under the hood. Wonderful way to burn through retirement savings.
Having been through all the financial scenarios, I can only conclude that if you are in modestly comfortable (but hardly "rich") circumstances, you can live a good life in retirement and leave something to your heirs -- as long as you (and your immediate dependent(s)) avoid long-term disability. And that is the big crap-shoot.