Aces High Bulletin Board
General Forums => The O' Club => Topic started by: alskahawk on February 26, 2008, 08:12:59 PM
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As per Dave Ramsey today; "If you put $2000 in a Roth IRA when you are 16 years old and never touch it and it grows at the rate the stock market has grown in the past (50 years?)it will be worth 2.6 million dollars when you turned 76 years old."
My thoughts; Nice to know information. Also points out how bad our government is with our money. We have all put 7.5% of our earnings into social security from out first dollar we earned. Our employers have put in the same amount. So what can we expect for our 15% we have saved our whole life? $800-1500 a month and congress acts like they are doing us a favor.
Now these guys want a national health care plan. We expect them to fix our borders. Fix our trade deficit. Crime? We may be witnessing the end of Era Americana.
PS; I am a Democrat.
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alaskahawk,
It is impossible to raise the kind of questions you do in your post and be a Democrat. Welcome to the light side.
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You have to contribute to the IRA till retirement to get that amount. That is where the compounding interest comes into play. So, putting the maximum allowable amount per year for the ROTH, times how many years you work up till retirement - then cashing out is how you get that amount of money. Not putting $2,000 in once and then 1 million 50 years later.
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You also have to remember, its not only retirees getting Social Security, I myself have been receiving SS since I was 19.
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Originally posted by trax1
You also have to remember, its not only retirees getting Social Security, I myself have been receiving SS since I was 19.
Why?
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Originally posted by Donzo
Why?
Paraplegic, bad car accident.
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Originally posted by Wolfala
You have to contribute to the IRA till retirement to get that amount. That is where the compounding interest comes into play. So, putting the maximum allowable amount per year for the ROTH, times how many years you work up till retirement - then cashing out is how you get that amount of money. Not putting $2,000 in once and then 1 million 50 years later.
No. contribute once at 16 Years of age. No more contributions. Let it grow in a Roth IRA until age 76. $2,584,730.16 This is from the calculator at the Dave Ramsey site.
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Originally posted by alskahawk
No. contribute once at 16 Years of age. No more contributions. Let it grow in a Roth IRA until age 76. $2,584,730.16 This is from the calculator at the Dave Ramsey site.
Link to calculator?
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Originally posted by trax1
You also have to remember, its not only retirees getting Social Security, I myself have been receiving SS since I was 19.
My brother in law made it through law school on social security(his father died when he was a junior).
Shortly after my father retired from the military he was disabled at age 45 He received social security, which made life for my 8 younger brothers and sisters much better. Of course the social security administration would periodically try to get my father back to work. (he was paralyzed on his left side from a brain injury and could barely walk) There were threatening letters, visits, specialists etc. They did every thing they could to make him feel like a dreg on society.
However, those that receive and haven't paid in or have paid in very little are not the norm. I think any reasonable American supports those in need getting it. The point is the work force paying in 15% and actually getting a negative return. Imagine if the billions collected every year actually got a decent return.
Go Hawks! Beat Illinois!
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Originally posted by trax1
You also have to remember, its not only retirees getting Social Security, I myself have been receiving SS since I was 19.
One of my sister's friends has a "Bipolar" mother. Because of this, my sister's friend has been receiving from the government $900 per month since she was 10. She continues to receive 900 per month from the government even though she's over 18.
This is NOT counting how much money the Mother or the rest of the family gets from social security. Just that the daughter is directly paid 900 per month herself.
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http://www.daveramsey.com/etc/investmentcenter/dsp_investing_calc_swf.cfm
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Originally posted by lasersailor184
One of my sister's friends has a "Bipolar" mother. Because of this, my sister's friend has been receiving from the government $900 per month since she was 10. She continues to receive 900 per month from the government even though she's over 18.
This is NOT counting how much money the Mother or the rest of the family gets from social security. Just that the daughter is directly paid 900 per month herself.
Does she work?
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Originally posted by lasersailor184
One of my sister's friends has a "Bipolar" mother. Because of this, my sister's friend has been receiving from the government $900 per month since she was 10. She continues to receive 900 per month from the government even though she's over 18.
This is NOT counting how much money the Mother or the rest of the family gets from social security. Just that the daughter is directly paid 900 per month herself.
Damn, I don't get that much....wish I did. I get a few hundred less then that, and I get SSI & SSD
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If I'm thinking of the right one, she does do some waitressing, only having started in the past year. However it doesn't come near the 900 per month she gets from the gub'ment.
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People drawing SSI payments are a drop in the bucket compared to the amount of money pulled out of the fund by the government.
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Agreed.
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Originally posted by lasersailor184
If I'm thinking of the right one, she does do some waitressing. However it doesn't come near the 900 per month she gets from the gub'ment.
Yeah, your allowed to make a certain amount a month and still receive SS, I think it's something like $1500, if you make more they give you less.
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Originally posted by rpm
People drawing SSI payments are a drop in the bucket compared to the amount of money pulled out of the fund by the government.
Exactly. :aok
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Originally posted by trax1
Yeah, your allowed to make a certain amount a month and still receive SS, I think it's something like $1500, if you make more they give you less.
But she had a mother that was bipolar. Getting some $$$ as the daughter while she was younger and not working is somewhat acceptable.
What's her incentive to go out and make more than is allowed to still receive SS?
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Again, I hope I'm thinking of the right one, but she's planning on working this year, then traveling abroad for ****s and giggles. Even though she's going on 19 or relatively soon past, she doesn't have college in her sights anytime soon.
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Originally posted by sluggish
alaskahawk,
It is impossible to raise the kind of questions you do in your post and be a Democrat. Welcome to the light side.
Democrat. Conservative Democrat.
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Originally posted by Donzo
But she had a mother that was bipolar. Getting some $$$ as the daughter while she was younger and not working is somewhat acceptable.
What's her incentive to go out and make more than is allowed to still receive SS?
I'm not sure what the rules are for that situation if she's 18, I would think it would stop, but there might be a clause that she still gets it if she living at home and in school, but it won't be paid to her for ever, it will stop.
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Originally posted by Wolfala
You have to contribute to the IRA till retirement to get that amount. That is where the compounding interest comes into play. So, putting the maximum allowable amount per year for the ROTH, times how many years you work up till retirement - then cashing out is how you get that amount of money. Not putting $2,000 in once and then 1 million 50 years later.
I think he's (alskahawk) right...according to the calculator.
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Examples of Social Security retirement benefits should include ages 62, 65, 67, and 70 -- lotsa people die before age 76.
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Originally posted by rpm
People drawing SSI payments are a drop in the bucket compared to the amount of money pulled out of the fund by the government.
No kidding. Had the politicians left it alone for SSI recipients alone, there would be no talk of SSI problems. One of the few govt programs that would work if left alone.
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Originally posted by alskahawk
As per Dave Ramsey today; "If you put $2000 in a Roth IRA when you are 16 years old and never touch it and it grows at the rate the stock market has grown in the past (50 years?)it will be worth 2.6 million dollars when you turned 76 years old."
My thoughts; Nice to know information. Also points out how bad our government is with our money. We have all put 7.5% of our earnings into social security from out first dollar we earned. Our employers have put in the same amount. So what can we expect for our 15% we have saved our whole life? $800-1500 a month and congress acts like they are doing us a favor.
Now these guys want a national health care plan. We expect them to fix our borders. Fix our trade deficit. Crime? We may be witnessing the end of Era Americana.
PS; I am a Democrat.
That would be 60 years (76-16=60).
This also assuming that the market will grow with a similar percentage rate and that the companies that you invest in will not collapse.
Kind of like buying a house now, just not going to grow in value (percentage wise) like those bought long ago.
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Originally posted by SaburoS
No kidding. Had the politicians left it alone for SSI recipients alone, there would be no talk of SSI problems. One of the few govt programs that would work if left alone.
Again, this is talk of "Communism works in principle." Communism does not work in principle. It does not work, ever.
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Originally posted by lasersailor184
Again, this is talk of "Communism works in principle." Communism does not work in principle. It does not work, ever.
I believe the Nixon administration was the first to raid the SSI fund (I could be wrong), and most, if not all administrations since have raided SSI to fund other federal projects. Put all that money back and it would be flourishing.
Do you believe that we, the USA can survive without taxation of some sort?
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yep... I will collect at 62 because I can and.. I want to get as much out of it as I can before the whole house of cards falls apart..
I won't get much because.. well.. I am being punished for putting a lot in and then getting my own retirement. they will take about $400 off my so called benifeit because I planned ahead.. they will give it no doubt to someone who never contributed or use it for some other government program.
I would settle for my money back.. no interest.
lazs
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The plan that started this thread sure seems to look nice at first. Then the idea of having to wait until age 76 to retire is pretty darn silly. By the time I'll be 76 I'll have been retired for 26 years.
In reality the concept of starting a retirement fund at an early age has considerable merit. Just making a lump sum deposit and then forgetting it is not a good idea. No one knows what the rate of inflation will be for 50 years in advance and there is no guarantee that the fund / company you invest in will last all 50 years with a good rate of return.
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Retired at 50? Talk about unrealistic expectations...
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I'm 54, I've been fully retired for 4 years. I also retired from my primary career at age 40. Granted it was earlier than I planned by 7 years but I had planned to retire by the time I was 47 and was on the way. I could have retired normally at age 42 had I not been disabled on the job.
I started working again since I was bored silly. Now that the wife retired almost 4 years ago, at age 55 BTW, both of us are fully retired.
Perhaps your expectations need a reality adjustment. Life choices are just that, choices. Decide where you want to be then work to get there. Education is not necessarily a one time deal and continuing it later is possible as are career choices.
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Originally posted by Maverick
The plan that started this thread sure seems to look nice at first. Then the idea of having to wait until age 76 to retire is pretty darn silly. By the time I'll be 76 I'll have been retired for 26 years.
In reality the concept of starting a retirement fund at an early age has considerable merit. Just making a lump sum deposit and then forgetting it is not a good idea. No one knows what the rate of inflation will be for 50 years in advance and there is no guarantee that the fund / company you invest in will last all 50 years with a good rate of return.
That wasn't a plan. Just an example of compound growth. I used it to illustrate how bad our government takes care of our money. In the example it is assumed that you invest in a good mutual fund. Which averages 12%.
If a person starts saving at an early age and avoids the pitfalls of credit, xwifes/husbands etc then they probally could retire much earlier than 76.
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Don't know how we got from a financial discussion to communism.
Chief failing of communism: No matter how hard I work I get the same as the bum next to me.