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UPS Retirement Topics
From a VP job to flipping burgers and handing out free samples: Here's a cautionary tale of what can
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<blockquote data-quote="BMWMC" data-source="post: 1252035" data-attributes="member: 37461"><p>You see this is the problem with this kind of math and assumption. Lets look at a hypothetical young person who has just completed college or trade school, establishes themselves (if there lucky) in a career path job, and starts contributing to a retirement account like a 401K (cause that's all there is now) at age 25;</p><p></p><p>They earn $35,000. To save 20x ($700,000) of there income they would have to set aside $23,333 per year for 30 years to retire at 55. That's 66% of there income. Impossible. They would have to live on less than a thousand dollars a month for 30 years.</p><p>Even if you add 10 more years its still over 1/2 there income. All adjustment like inflation and wage growth wash due to higher rates of needed contributions. This is why this whole retirement scare does more harm than good. Its better to save purchasing power via investment instruments central banks can't devalue (like gold) and invest in yourself by learning skills and trades that supplement income and add meaning to your life. I don't think of retirement where I will just do nothing I think of it as a lifestyle change. Its not work or not to work its <strong>life as a career</strong>.</p></blockquote><p></p>
[QUOTE="BMWMC, post: 1252035, member: 37461"] You see this is the problem with this kind of math and assumption. Lets look at a hypothetical young person who has just completed college or trade school, establishes themselves (if there lucky) in a career path job, and starts contributing to a retirement account like a 401K (cause that's all there is now) at age 25; They earn $35,000. To save 20x ($700,000) of there income they would have to set aside $23,333 per year for 30 years to retire at 55. That's 66% of there income. Impossible. They would have to live on less than a thousand dollars a month for 30 years. Even if you add 10 more years its still over 1/2 there income. All adjustment like inflation and wage growth wash due to higher rates of needed contributions. This is why this whole retirement scare does more harm than good. Its better to save purchasing power via investment instruments central banks can't devalue (like gold) and invest in yourself by learning skills and trades that supplement income and add meaning to your life. I don't think of retirement where I will just do nothing I think of it as a lifestyle change. Its not work or not to work its [B]life as a career[/B]. [/QUOTE]
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