You people keep forgetting that old people get sick, break bones, have medications, move to florida, etc. There are tons of factors in there to where your set amount of money changes rapidly.
You people keep forgetting that old people get sick, break bones, have medications, move to florida, etc. There are tons of factors in there to where your set amount of money changes rapidly.
No, I'm saying that if you had $2,000,000 today and put it in a jar to save (no interest at all being made), in 40 years you would essentially have $550,000, which would be enough to retire now. I used the calculator to see how much $2,000,000 today would be in 40 years, hence putting 0.0 in for the interest rate. I didn't go into how you would have $2,000,000 in 40 years.Quote:
Originally Posted by techs
BTW, what is your response to my arguement about increasing inflation/cost of living also increasing salaries/wages which also would increase savings?
If I don't post for awhile, it's because I needed to get back to work. I'll pick this up later today.
You are not thinking in real terms.Quote:
Originally Posted by SolApathy
The average wage in 1961 was approximately $150 per week, in 2001 it was approximately $750 per week. At that rate a person making $750 a week now would need to make $3,750 a week in 40 years. 52 weeks X $3,750 = $195,000 a year. 20 years x $195,000 = $3,900,000.00 without taking the extra 20 years of inflation into account.
But you're not taking into account that as the salary/wages go up, the person's savings would also go up to commpensate.Quote:
Originally Posted by jitBob
But you are not taking into account what I was replying to.Quote:
Originally Posted by RIOT
As you see in the post above in 1980 it was making 10 percent.Quote:
Originally Posted by RIOT
but yes, t-bills can and usually do pay at the inflation rate or slightly less than inflation ( It depends on how you buy them.) If you want to risk the least amount of money you just keep buying for the smallest time periods. The rate goes up and down according to inflation.
There is NO guaranteed investment that will pay greater than inflation. Think about it. Even your personal savings account in a bank is insured only up to, I think, 250,000. (it may have gone up to 400,000).
This whole thread is continuing because uninformed people keep quoting huge amounts their investments will pay off. They are completely erroneous and they have no idea what they are talking about.
I have proven time and time again that 97 percent of individuals cannot save enough to pay for a variable period of retirement, anywhere from 1 year to even over 33 years if they live that long.
It is only unbridled greed (they want the money now), lack of caring for the consequences (being old and penniliess) and an overbiding ego that they are going to "beat the market".
There's a sucker born every minute.
What post above? If you are refering to the website I linked to showing the Prime interest rate, where on that website show the T-bill interest rate? T-bill interest rate does not equal Prime interest rate. If it did, the current T-bill rate would be about 5.25% which I believe is what Prime is currently set at.Quote:
Originally Posted by techs
I couldn't find where you proved this. Regardless, if 97% of people couldn't save responsibly and therefore DID NOT participate in the OPTIONAL plan to personally invest a 1/3 of the money currently going to SS, that would leave 3% of the population to participate. If 3%, and only 3%, of the population starting saving 1/3 of the money they currently send to SS (not ALL just 1/3), would that bankrupt SS?Quote:
I have proven time and time again that 97 percent of individuals cannot save enough to pay for a variable period of retirement, anywhere from 1 year to even over 33 years if they live that long.
I will always admit that I don't know everything (hence my asking you to dumb done the information you posted from the Treasury Dept.). However, you're not helping me to be informed by directly answering any of my questions. While currently I do believe that generally SS isn't working and that I could do better without it, I am open to hearing your arguement and even possibly changing my mind. To do that, however, I need honest and direct answers to my questions.Quote:
Originally Posted by techs
I didn't realize that SS paid for medical needs. I thought Medicare did that which is a separate tax (at leat on my paycheck, it is).Quote:
Originally Posted by Cleetus
Oops, I just meant that all sorts of expenses still pop up when you get old. Dealing with my grandfather and his decline we are watching everything he had saved his whole life dwindle as he needs more and more care.Quote:
Originally Posted by RIOT
Medicare is like health insurance. You still have co-pays, especially on meds...which will add up for old people. That's why there's a yearly cap on how much out of pocket expense seniors have to pay before Medicare pays 100%. However, because of the out of pocket expense until then, the fixed income does decrease.Quote:
Originally Posted by RIOT
Anyone remember what the max out of pocket for the year is for meds and visits?
Hold your horses.Quote:
Originally Posted by Ya_know
Medicare is actually paid for by a separate fund. It is not part of your retirement fund. Some companies list it separately on their pay stubs and it goes into its own federal fund which is admistered by Medicare.(It is a part of the Social Security Administration)
Medicare still does not yet cover medications. That is until the new Medicare drug plan goes into effect. And then no one seems to know if you will even save any money at all.
Medicare does pay for certain medications like anti-cancer drugs that are administered in a hospital or doctors office.
I believe there is no limit beyond which the person then does not have to pay their 20 percent co-pay. I thought that this is why private companies sell Medicare Supplemental insurance plans for.
You have lifetime maximums under Medicare. I don't remember what it is currently is but it may be 180 lifetime hospital days. Then I think from between 181 to 365 you pay 50 percent. This has changed much in the last 10 years so I am certainly not giving the accurate numbers.
You are probably confusing it with private health insurance plans where the best ones do start paying at 100 percent after you reach a certain point.
The Medicare fund faces a real crisis with a looming deficit that far outweighs the Retirement fund.
You don't hear about it because President Stupid says he fixed it. His statement was so absolutely ludicrous no one even considers it the least bit useful.
But since Big Medicine is a BIG Bush supporter Bush is trying to hide the REAL problem.
Yeah techs, I don't know what I was smoking when I posted that. There was pretty much flaw in everything I said. Thanks for setting me straight without beating me up... :thumbs:
The number of replies in this thread by people who consider Bush to be either the stupidest or most lying President ever is amazing!
Where there's smoke there's fire.
I can only hope after Bushes SS plan crashes and burns he will become irrelevant and the Republican party will return to sanity.
Don't forget to attest how you hope and pray that all of our efforts in Iraq fail, just to prove Bush wrong... :rolleyes:Quote:
Originally Posted by techs