I have not touched any of my principal. A million dollars getting a 5% return provides you with a 50K a year income. I have no debt and am not a spendthrift and I my wife and I can live on less than 50K a year so a million dollars in may case would last forever and would in fact grow over the course of my retirement.
If people were allowed to put what the government takes for Ss into a Roth IRA then they would be far far better off.
That's probably where I will end up. $1 million or $1.4 million. But 5% aint shit. I don't want to live on a budget. I don't want to live my golden years on a $50K budget.
But throw in social security, suddenly I'm not being so frugal.
AND, it pisses me off I have to wait till 65 to get medicare. So you pay for healthcare? That cuts into your $50K
Yes if people HAD TO put that same $ they put into ss into a roth, they'd do better. We should divert the money we all pay into a roth and start making 5% on the money in the fund. Or has the Ukraine War put those stocks in the shitter so right now it's not doing so well. Is the roth safe as ss? Lots of questions. And how are you going to pay off people like me who stay with social security? 20% cuts?
I would almost take 20% cut to my ss if they would let me get medicare at 62 or ****, how about 59 1/2?
You can start withdrawing money from your 401(k) without paying the penalty at
59 ½. This is the age that the IRS has designated as the “age of retirement.” However, you will be penalized if you withdraw money from your 401(k) before this age. The penalty for early withdrawal is ten percent of the amount withdrawn.
So just let me get medicare at 59 1/2 and I'll take the 20% cut. Looks like I'm going to get $2600 at age 62. I'll take it. That's $2000 a month. AND if they said i would never get an increase, I'd still be okay with that. Just give me my $2000 a month. Any more, cool.
Yesterday my dad and I were talking about the max and min of ss.
For example, if you retire at full retirement age in 2023, your maximum benefit would be $3,627. However, if you retire at age 62 in 2023, your maximum benefit would be $2,572. If you retire at age 70 in 2023, your maximum benefit would be $4,555.
1 years of coverage receives a special minimum Social Security benefit of
$45.50 per month, while a worker with 30 years of coverage gets a special minimum benefit of $950.80 per month.
So someone who worked only 11 years might only get $50 a month.