HMM: ARE YOU SAVING TOO MUCH FOR RETIREMENT? This seems politically convenient at a time when so many people’s 401k funds have taken a hit.
UPDATE: Reader John MacDonald writes that no, you’re not saving too much:
Financial planners factored in 6-8% returns on your nest egg.We’re in an environment where the banks pay a whopping 1% on your money.So if you had $500,000 and took out 4% a year ($20,000)- supposedly it would last 25 years.However real inflation is about 3% (gas gone down? food prices gone down? what about the printing presses?) so you’d be taking out 4% + 3% inflation so you’d run out of money sooner….and if taxes, “service” fees go up??
Today’s seniors are having a difficult time since their stocks have been shot, housing’s in the dumps and their CD rates are negligible….and that’s for those who have diligently saved for 40 years.
Yeah, as I’ve said before, if we had a Republican President there’d be a lot of tear-jerking press pieces about senior citizens living on dog food because of low CD rates. Now, not so much.