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Joined: Mar 2003
Posts: 7,117
Hard-core CEG'er
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Hard-core CEG'er
Joined: Mar 2003
Posts: 7,117 |
Originally posted by HITMANinMI:
Pretty funny.
Now for the serious side, my generation will most likely never be able to retire, as social security and Medicare will be long gone by 2050.
Just a few generations ago, there was no SS and no Medicare. If people are RELYING on those to retire they are falling into the Democrat "don't worry, we'll take care of you", and "you're too stupid to take care of yourself." trap.
Buy a clue & plan your financial future so you won't need those things for retirement & you'll be fine. And don't give me any crap about not everbody can afford to do this. It doesn't take much if you start early.
Must be that jumbly-wumbly thing happening again.
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Joined: Nov 2003
Posts: 1,831
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Nov 2003
Posts: 1,831 |
Originally posted by TourDeForce:
Originally posted by HITMANinMI:
Pretty funny.
Now for the serious side, my generation will most likely never be able to retire, as social security and Medicare will be long gone by 2050.
Just a few generations ago, there was no SS and no Medicare. If people are RELYING on those to retire they are falling into the Democrat "don't worry, we'll take care of you", and "you're too stupid to take care of yourself." trap.
Buy a clue & plan your financial future so you won't need those things for retirement & you'll be fine. And don't give me any crap about not everbody can afford to do this. It doesn't take much if you start early.
I'm 20 and figured that out along time ago. I invested longterm in stocks, I also invest in my 401k and I have a special savings acct set up for retirement. They teach us to do that in high school these days...On another note that was pretty funny  Hitman, don't be so negative and pessimistic all the time dude! Lighten up! 
A Contour is not just a car, it's an experience
99 T-Red SE Zetec ATX
Born April 16, 1999
98 E0 Silver Frost CSVT
#3175/3565
Born August 21st, 1997
Stored at P.R.T. for the winter
67 Mustang 289 project car
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Joined: Jun 2001
Posts: 682
Veteran CEG\'er
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Veteran CEG\'er
Joined: Jun 2001
Posts: 682 |
Originally posted by TourDeForce:
the Democrat "don't worry, we'll take care of you", and "you're too stupid to take care of yourself."
Did I miss the secret Democrat meeting where this was claimed? Darn, I miss out on all the good meets.
98.5 Contour SVT
"Too many OB/GYNs aren't able to practice their love with women all across this country"
--US President George W Bush
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Joined: Aug 2003
Posts: 162
CEG\'er
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CEG\'er
Joined: Aug 2003
Posts: 162 |
I got Military retirement a whole life insurance policy and the Thrift Savings Plan which is basically a military 401k. So when I get out at 38 I can get another job and start a 401k with them.
Current Family Truckster 98 ZTour ATX
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Joined: Dec 2000
Posts: 1,960
Hard-core CEG'er
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Hard-core CEG'er
Joined: Dec 2000
Posts: 1,960 |
Originally posted by KyleH:
It's your duty to look after yourself...no one elses
Fair enough. Stop deducting my social security money then and I won't make a claim on SS when I retire. 
Bless our servicemen & women overseas.
L.Cpl Ian Malone, 1st Battalion Irish Guards, R.I.P.
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Joined: Feb 2003
Posts: 4,220
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Feb 2003
Posts: 4,220 |
Originally posted by MarkO:
Originally posted by KyleH:
It's your duty to look after yourself...no one elses
Fair enough. Stop deducting my social security money then and I won't make a claim on SS when I retire.
When you pay SS you're not looking after yourself, you're looking after your grandparents, et al.
Best thing about working for the railroad -- no Social Security! I pay twice as much as everyone else does for our retirement plan though -- but it'll surely be there when I retire and I'll get 4-5 times as much as SS pays out.
2003 Mazda6s 3.0L MTX
Webpage
2004 Mazda3s 2.3L ATX
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Joined: Dec 2000
Posts: 1,960
Hard-core CEG'er
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Hard-core CEG'er
Joined: Dec 2000
Posts: 1,960 |
Well, for me, my SS money doesn't support my family at all but I see your point.
Bless our servicemen & women overseas.
L.Cpl Ian Malone, 1st Battalion Irish Guards, R.I.P.
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Joined: Dec 2002
Posts: 937
Veteran CEG\'er
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Veteran CEG\'er
Joined: Dec 2002
Posts: 937 |
Originally posted by Probzilla:
I got Military retirement a whole life insurance policy and the Thrift Savings Plan which is basically a military 401k. So when I get out at 38 I can get another job and start a 401k with them.
Look very carefully at your whole life policy...Don't want to start anything, but that policy is probably the worst long-term investment you could make. Period.
Even if your knee-jerk reaction is to tell me I am full of it, do your homework on this one - its your financial future.
Regardless, at the end of the day, those who invest well and those who invest poorly will both pity (or laugh at)those who never invested at all.
99 Tropic Green SVT, Tan Leather, 20K miles, "Nice Twin" (factory stock).
99 Tropic Green SVT, Tan Leather, 28K miles, "Evil Twin" (Turbo AER 3L and more in progress)
96 Red LX, Opal Grey Leather 2.5L, ATX, 22K miles
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Joined: Aug 2003
Posts: 162
CEG\'er
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CEG\'er
Joined: Aug 2003
Posts: 162 |
I have I look at it all the time. It basically come down to this. in 13 more years when I have invested around 11k into it I can cash it out for 19k or cash it out for 15k and keep the life insurance at it's current level which is about 60k.
Current Family Truckster 98 ZTour ATX
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Joined: Dec 2002
Posts: 937
Veteran CEG\'er
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Veteran CEG\'er
Joined: Dec 2002
Posts: 937 |
Originally posted by Probzilla:
I have I look at it all the time. It basically come down to this. in 13 more years when I have invested around 11k into it I can cash it out for 19k or cash it out for 15k and keep the life insurance at it's current level which is about 60k.
This seems pretty bad. The only good thing is that the amounts are not that significant in terms of retirement planning. How much a year are you paying for this?
Advice is cheap and on this subject I have some hard won experience â??? even though I am a physicist, not an investment planner.
If I were you this is what I would do:
1. Terminate this policy immediately and take whatever cash value it has.
2. Open an IRA account and deposit the entire amount. You can deposit up to $3,000 per year (I believe it increases to $3,500 per year starting in 2005). Your money will now grow tax free. If your annual taxable earnings are under $45,000 per year ($65,000 if married) you can deduct the entire IRA contribution from your federal income tax. This could be worth up to $1,000 in your pocket at tax time.
3. If you need the life insurance coverage, purchase an inexpensive term policy.
4. Every year from now on deposit in your IRA at least the amount you would have spent on the crappy whole life policy you have now. If you can, deposit right up to the limit â??? especially if you can take the deduction.
5. Be happy! When you turn 65 and need the money, you will have a seriously healthy account to draw upon.
Hereâ??s some numbers for you. If you start your IRA account this year with $3,000 and only invest the $850 / year you are spending now on whole life, in 13 years you will have between $27,000 to $44,000 in your account assuming an average rate of return of 9% to 15% (I manage to see at least 15% a year with my investments). With the same rate of return, if you make the maximum contribution, you will have between $125,000 to $188,000 in your account in 13 years.
You will also have significant tax savings each of these years if you meet the income limits (refund check). Enough to partially fund your next year IRA contribution.
Get on Google and search on â??IRA Calculator.â? Play with it. Learn.
Whole life is the worst scam the insurance companies have ever come up with. It really has no place in any serious retirement plan.
Post the actual payments and the current cash value of this whole life policy and I will run some real numbers for you. Do you meet the deductable IRA contribution income limits?
99 Tropic Green SVT, Tan Leather, 20K miles, "Nice Twin" (factory stock).
99 Tropic Green SVT, Tan Leather, 28K miles, "Evil Twin" (Turbo AER 3L and more in progress)
96 Red LX, Opal Grey Leather 2.5L, ATX, 22K miles
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