Skip to main content

Message to my Kids

Dear Kids, 

Experts recommend you save 10% of your income each year for retirement. Do you? This is just the beginning.  Make sure you put the money into a 401K plan, the only way you can build a substantial nest egg.  For me, I would need $500,000 in savings just to pay my property tax with the 1% interest, if I invested in a bank savings account.  Put your money where you can't get at it.  Not banks. "Banks shaft you in two ways, high interest when you borrow and minuscule interest when you save."

Only 39% of Americans can meet a $1000 emergency.  Can you?  If you cannot, you are in dire straits. About 80% of Americans live paycheck to paycheck.  Is you, then ditto.  Have a two month minimum, hopefully eight month financial cushion. Actually, much more if you're in your forties.

About 38% of Millennials believe $200,000 is enough for retirement.  Do you?  Of course, this is ridiculous.  You need at least $1,000,000 just to begin thinking about retirement.  At this rate, taking the required distribution, you will have about $50,000 per year for about 20 years - including taxes*. This plus Social Security will give you a reasonable retirement, but nothing close to comfortable. (Never a new car, little travel, and really no extras.) Also, the one million is in today's dollars. 

* Yes, even your social security incurs taxes, plus tax-deferred investments.  Also, you pay for medicare from your social security.  You also need a supplementary plan, ~$500/mo. 

Save baby, save. 

Life is like a Polaroid picture.  When I was must younger, we were all impressed with the Polaroid camera. They produced a picture in about one minute.  Miraculous. Compared with a week using the traditional photo processing methods, this was light speed.  When you reach retirement, you will think your entire life happened in one about minute. It will seem to have happened that fast.  Keep track of your achievements, as these are the records you even lived. 
Labels:

Comments

Post a Comment

Please Comment.

Popular posts from this blog

UNCERTAINTY IS CERTAIN

  Uncertainty is Certain G. Donald Allen 12/12/2024 1.       Introduction . This short essay is about uncertainty in people from both secular and nonsecular viewpoints. One point that will emerge is that randomly based uncertainty can be a driver for religious structure. Many groups facing uncertainty about their future are deeply religious or rely on faith as a source of comfort, resilience, and guidance. The intersection of uncertainty and religiosity often stems from the human need to find meaning, hope, and stability in the face of unpredictable or challenging circumstances. We first take up the connections of uncertainty to religion for the first real profession, farming, noting that hunting has many similar uncertainties. Below are groups that commonly lean on religious beliefs amidst uncertainty.   This short essay is a follow-up to a previous piece on certainty (https://used-ideas.blogspot.com/2024/12/certainty-is-also-emotion.html). U...
Post a Comment
Read more

CERTAINTY IS ALSO AN EMOTION

  Certainty is also a Feeling Certainty is often viewed as a mental state tied to knowledge and confidence, but it also functions as a feeling with distinct emotional and physiological components. While it arises from cognitive processes, certainty also has a subjective and emotional quality that makes it more than just a rational judgment. It provides a sense of assurance and security that shapes human experience in profound ways. Emotional Dimension . At its core, certainty evokes emotions that influence how we perceive and interact with the world. When someone feels certain, they often experience relief, comfort, or empowerment. These emotions are particularly strong when uncertainty or doubt is resolved, offering a sense of closure. For example, solving a complex problem or having a belief validated by evidence brings not just intellectual satisfaction but also emotional reassurance. Subjectivity. Certainty is inherently personal and subjective. It depends on individual...
Post a Comment
Read more

Lies, Deceit, and the National Agenda

The world you grew up in is no more.  The world of reasonable honesty and reasonable lies has been replaced by abject dishonesty and blatant lies. Lies.  Yes. People have always told them.  You have told them; so have I.   We need lies; they are a foundational structure of social living.  They both deceive and protect.  Children tell them to their parents to avoid consequences, like punishment.  Adults tell them to their bosses, to enhance their position and/or avoid consequences of poor performance.  Our bosses tell them to their boards to suggest business is good, the project is on target, or the detractors are wrong.  The boards tell them to shareholders to protect their own credibility and most importantly, stock values.   Our politicians tell lies to their constituents, though sometimes innocently with them not actually knowing much more than they've been told.  They enhance their positio...
2 comments
Read more