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Retirement Strategies
13 12 04  22  24
-------- Irony
For those of us living in the USA, I see three options for retirement:
- Option 1: You live a sensible life, and save as much
as you can in your 401k, IRAs, Brokerage Accounts, Real Estate, and
other investment vehicles. It is hard. For example: a
401k contributing $14,000 USD a year (tax sheltered) is a reduction of
about $800/month of after tax money that you would not see on your
expendable income, but will surely give you a comfy life in the future.
- Option 2: You pray to god and to your political party
of choice that they save the Social Security system. In such a
case you will ONLY need to work until you are 67 years old (or any
other age they decide to save the system). You will receive a
small check that hasn’t even been properly adjusted for inflation that
will help you pay for a very small apartment, an old car, and very
basic food – and not too much more.
- Option 3: You start having kids. 10 or 15 kids
would be a good number, just like in the old days. Teach them
very sound financial practices and they may be able to support
you.
I prefer to stick to Option 1. Hope is not a strategy.
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