The Million-Dollar Retirement Plan

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Not a fan at all of big Government intervention. Beyond our National Security (Military) and a few other small proportioned areas, I see no need for them.
However, we could use some leadership from incumbents and establish a program that educates our young children. Along with those things we should be learning in elementary school....... lets add financial responsibility. Let's teach our children how to save at an early age, and not to live on more than you make. The power of compounding interest, the feeling of pride in living debt free and not being a slave to your debtor. Wouldn't it be nice to have a society of debt free individuals who owed nothing (or very little) to anyone.
To be honest, it's my opinion we don't even need the Government for this, we as parents should be doing this......... and demanding local school curriculum incorporate these simple philosophies next to reading, writing and arithmetic. Unfortunately, we are just the opposite. No accountability with our legislatures who spend us into oblivion. Now that's a shame

Bill of TX 4:28PM January 04, 2011

Like many got tied up with kids house etc. But really did not start in earnest until my very early 50's.... At age 60 with my IRA an active 401 a pension and SS the income it can generate exceeds my current income. Is it easy? No -- but you get used to it and as I near my retirement (62) it is not bad at all. I feel much more confident than i did just 4-5 years ago....

RJB of IL 10:33AM January 04, 2011

good thing you have a cola....those that served in the military no longer get one thanks to congress and obaba and company

floyd of NM 10:07PM December 19, 2010

I got my first job at age 23 and made $14K a year. I immediately signed up for my 401k ($32 per paycheck) and have never stopped contributing. At age 45 I'm on track to accumulate over $1M. I won't be "rich" but I'll have something. The key was realizing that (a) time for my assets to compound tax-deferred was the most important factor to reaching my goal and (b) that the responsibility was all on me.
Bottom line to people with Henry's mindset: if you have no pension (I don't) stop blaming someone else and take charge of your own future. Do without. Unlearn instant gratification. Learn saving and investing fundamentals, take advantage of deferred taxes, Roths, other vehicles. Save something, anything. The days of trusting your company or the government to take care of you are over.
For the love of God, stop whining and take responsibility for yourself!

JT of PA 10:10AM December 14, 2010

Not Everyone made big money in there life time of working. If You Are Old You Are Screwed. They Want You To Die.I Was Proud To Be American, But Not Anymore, Look At Who Is Running Are Country. (DUMB And Dumber)

Henry Haines of NY 1:50AM December 14, 2010

I understand the million dollar figure though I will never get there since I'm greatly underwater on my house and bought later in life. However, I do have a pension of $1600/month with a COLA and my husband has a $1400/month pension with a COLA. I will also get a pension of $1500/month with a COLA. How much can I deduct from that million dollar figure with $54,000 coming in? Probably most of it, right?

Chrystine of NH 8:42AM December 13, 2010

Millionaire next door
Richest man in Babylon
Read them and retire rich
Next up - Anything by John Bogel of Vanguard and anything on asset allocation
Me: Millionaire, 55, retired in Thailand (where it is cheap to live)

Lorenz of NY 8:19AM December 13, 2010

best solution is to have 3 million rady at retirement....set goals higher! 30 year term while accumulating your nest egg then self inure when term runs out and make adjustments to your insurance(life) as IRS changes rules and or your needs change!

chris of SC 7:53AM December 13, 2010

7% annual returns in a 401k is about average for long term investments in a diversified portfolio. Also there are a lot of safe Gas & Oil trusts which pay an average of 7.4% now. Don't be a sucker and leave your money in a bank CD.
For examples:
Whiting USA Trust WHX 11.5%
MV Oil Trust MVO 8.1%
Hugoton Royalty Trust HGT 7.6%
Dominion Black Warrior DOM 7.5%
BP Prudhoe Bay Trust BPT 7.1%
Mesa Royalty Trust MTR 7.0%
San Juan Basin Royalty Trust SJT 6.8%
Cross Timbers Royalty Trust CRT 6.6%
Sabine Royalty Trust SBR 6.4%
Permian Basin Royalty Trust PBT 6.2%
Dorchester Minerals DMLP 6.2%
Average Yield 7.4%

Curt of NC 11:24AM December 10, 2010

You mention that you can take out 4% = $40,000 per year (with inflationary increases), but didn't mention that you will have risks of runing out of money (if there is a crash, and this decade had 2). Some suggest we need to change it to a 3% rule, since interest rates are so low now. BUT MOST IMPORTANTLY, I'm frustrated that you didn't mention that a inflation-indexed payout annuity can give you more than $40,000 and it is guaranteed to last a lifetime! Why do it yourself and take on the risks? If you have heirs and want them to get something, you can do it with insurance or give it to them directly. That's much better than giving them an inheritance when you die. They don't know when that will be nor how much money it will be. If you live to 100, it may be nothing. They'll be hoping you die sooner, and not spend down "their" money. Why not give them something when you are alive, so that you can see them enjoy it. With a million dollars, you can do that, and have the lifetime income (that increases with inflation).

Ron Gebhardtsbauer, FSA of PA 12:17PM December 09, 2010