Scary Tales: Near Future of Retirement Funding

Jacob Petersheim

Jacob Petersheim

Well-known member
Savings (including CDs, Savings Bonds, and on and on) will almost certainly face falling interest rates that move them negative in "real interest" when you count inflation. Inflation itself is set to rise due to defaulted student loan bailouts and other money printing.

The 401(k) trap may be ready to spring, not just the current tax traps but also a market crash.

Pensions, where they still exist, face overdraining as well as being dependent on the dicey stocks and bonds markets, as well as Treasuries.

Mass senior homelessness ahead is one scary conclusion, meant to be scary so people take some action before it gets too late.

Robert Kiyosaki: “You Will Be Homeless”– The Truth About Your Pension & 2026 Nightmare

In the video, Robert's "green boxes" are US Mint issued "monster boxes" which contain 500 American Silver Eagle coins.

What planning are you doing? What actions are you taking?
 
I'm not taking any action. My investments will sit where they are and when RMDs begin the dividends I take will cover them. Between dividends and Social Security payments (both of us), we don't draw down any of our investments and they continue to grow. We have zero debt and our home has been paid off since 2009, so we could live well on very little. Our financial advisor will help our children navigate their tax burden when we die.
 
Staying debt-free is probably the most necessary and valuable step when you can manage it.

Maybe you were luckier than I was in the 2008 crash. At least I wasn't depending on it so I had some time to replenish part of what was lost.
 
Jacob Petersheim said:
Staying debt-free is probably the most necessary and valuable step when you can manage it.

Maybe you were luckier than I was in the 2008 crash. At least I wasn't depending on it so I had some time to replenish part of what was lost.
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I was still working and busy "accruing" at that time, so the low market was an opportunity to buy. I am heavily invested in dividend-paying stocks so as long as the dividends roll in I'm not concerned with the stock price.
 
The market is radically overvalued right now by every measure. A crash seems inevitiable, though the "when" is hard to peg. Mid-term election results?

In 2008 I lost 30%, 50% there, but quite a few stocks went to 0, i.e. disappeared. At that point they pay no dividends, they no longer exist.

It is just prudent to have something stable instead. Retirement funding is classically a "3 legged stool." Social Security, Pensions, and Savings. Most peoples' investments are a sort of substitute for a pension. But you still need savings.
 
My stocks have never gone anywhere near zero, though they have taken some wild swings over the past 40 years. I chose a lump sum distribution when I retired instead of a monthly pension payment, but both my husband and I had very generous pensions. We also inherited a tidy sum from his mother so frankly we are pretty well set no matter how the economy swings.

We are not extravagant people and could live on Social Security if we had to. We are more interested in leaving our children a nice inheritance than living extravagantly, though we don't want for anything which is nice.

I don't understand why people panic over swings in the market. As long as you are not selling your shares, you haven't gained/lost a dime. If you don't have the stomach for the market, you shouldn't be in it.
 
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