The retirement savings debacle

[Alexander's Horse]

I just watched this Frontline story on the problems with 401K and retirement savings. When you turn 50 you start to pay more attention to these things

http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/

This mess isn't confined to the USA.

So stop arguing with Ben and pay attention to your personal finances.

One thing I can tell you is two mathematicians got the Nobel prize in the 1960s proving that you can't beat the market. Brokers, mutual funds, real estate or currency speculation, you are wasting your time

The interview with John Bogle who started Vanguard, who is a bit of a hero of mine, is worth reading. He is to saving what Warren Buffet is to investment.

But, as John Maynard Keynes like to say, in the long run we are all dead, so other things in life are important too

[KrazyHorse]

Every time I find out that salesmen don't have my best interests at heart I am shocked.

Indexing is already undergoing a meteoric rise. AUM of index equity funds has doubled as a fraction of equity fund aum over the last 15 years.

http://www.icifactbook.org/fb_ch2.html

[pchang]

Don't rely too much on your house to fund retirement. You still need a place to live.

[Hauldren Collider]

If you're worried you're going to blow through your 401k before you die buy an annuity.

[Alexander's Horse]

Don't rely too much on your house to fund retirement. You still need a place to live.

Agreed

[The Mad Monk]

What if you count on it as a rent-free place to live? That's like funding your retirement.

[rah]

Heck the taxes and insurance is creaping up to the amount of my loan payment. At least I'll be done in less than 3 years.

[The Mad Monk]

That can be a problem in some regions.

As for myself, I'm renting four acres of my land to a cattle farmer who's haying it. He gets four acres of hay for $50 a year, I get to pay agricultural taxes -- $1600 a year for a cape cod on nine acres. Insurance is about a quarter that.

[Alexander's Horse]

I need to move to where Monk is.

[MRT144]

If you're worried you're going to blow through your 401k before you die buy an annuity.

I plan on dying before retiring, so there's that too

[Hauldren Collider]

I plan on dying before retiring, so there's that too

http://www.theonion.com/video/social-security-reform-bill-encourages-americans-t,21006/

[Aeson]

We paid about $60 a year for a bit over a hectare. It'll go up when the house is finished and appraised most likely. I do get to pay visa fees, a forced vacation once every 16 months, lose 2-5% on any transfer/exchanges, and the 12% VAT on top of my US income taxes.

But even after all that it's still very inexpensive. I probably can retire once the house is finished (if I wanted to).

[Alexander's Horse]

except you have to be careful financially so you can go home to the USA if you want to, I've met people who can't

[The Mad Monk]

I need to move to where Monk is.

I live in walking distance of here.

[Ben Kenobi]

Heck the taxes and insurance is creaping up to the amount of my loan payment. At least I'll be done in less than 3 years.

Illinois is such a nice place to live.