the Wealthy worry that they'll outlive their retirement savings

[marmar]

:cry:



Krawcheck Says 53% of Wealthy Fear Outliving Savings (Update2)
By Alexis Leondis and Jeff Plungis


Jan. 14 (Bloomberg) -- A majority of wealthy Americans said they’re concerned that they won’t have enough retirement income to last through their lifetimes, according to a Bank of America Corp. survey.

The survey said 53 percent are concerned about making sure retirement assets will last. Fifty-nine percent of retirees also said rising health-care costs are a concern. More than half of non-retired respondents made some adjustments to their lifestyles last year, such as spending less on personal luxuries or giving less to charities, and 29 percent said they expect to retire later than originally planned, the study said.

“Helping our clients plan for retirement will continue to be a core focus for our business in the years ahead,” Sallie Krawcheck, president of global wealth and investment management for the Charlotte, North Carolina-based bank, said in a statement today.

The results are from a December phone survey conducted by Princeton, New Jersey-based Braun Research, a marketing research firm, which contacted 1,000 Americans with investable assets of at least $250,000. ...........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20603037&sid=aLbLawRCfYBk

[vadawg]

1. i think everyone worries about this

:shrug:

[Grand Taurean]

2. $250,000 worth of investments IS NOT wealthy these days.

[pnwmom]

4. You're right. A retiring couple with that much in investments probably won't

have enough to pay for years of assisted living costs, much less nursing home care.

[Hannah Bell]

14. for sure. it's nowhere near wealthy. Wealthy people's assets outlive them -- for

generations.

I think they mean the upper middle.

[dkf]

16. $2 million is minimum for a comfortable lifestyle

Anything less is iffy

[smalll]

20. Yep, and no-one where YOU lives can SURVIVE on less than 100K a year!

Amirite?

Sorry. Most Americans, even the youngest amongst us, could survive for the rest of our lives quite comfortably off TWO MILLION DOLLARS. How? Buy PCs, not Macs. Shy away from the organic arugula. Cut back on the eco-vacations in Kathmandu. Simple stuff, really. :shrug:

[dkf]

22. At least 100k if you want to have your own house. Eh make that 130k.

Less if you squish in with family.

What can you do?

[scarletwoman]

3. Yeah, I can relate.

:eyes:

I'm just hoping my health holds up enough for me to work until I'm 70, so I'll have a big enough Social Security check to sort of barely survive on. (I've got 10 years to go.)

That is, unless these sorry worried rich assholes vote for politicians who'll destroy Social Security in the meantime.

sw

[bertman]

5. That's my plan too, scarletwoman. Eight years here. I share your concern for Soc Sec.

[scarletwoman]

9. I never lived my life to make money, I lived my life to live & experience & learn & grow as a human

I always supported myself, no matter what it took. I worked hard, I raised my kids and gave them lots of amazing life experiences in lots of beautiful parts of the world. I never wanted an ordinary life, I never coveted material things, I never became a consumer, and I'll never be "rich". I don't regret a thing.

Just let me have my little Social Security check and I'll figure out how to manage. It's what I've done all my life, after all. :)

sw

[vadawg]

12. and you should get it, its part of the deal you signed up for

[bertman]

24. Sounds like you accomplished your goal of growing and learning, et al. There are many

ways to be "rich", only one of which is materially. You are wealthy in ways that many "rich" folks would envy.

:)

[Statistical]

23. SELF DELETE - wrong spot.

[Jamastiene]

6. Oh, dear. Should we take up a collection for them? n/t

[1awake]

7. yes, where do you want me to send my info to get it?

Not being a smartass.. well at least not in a mean way.. but $250,000 in investments is not alot and in many cases won't be nearly enough. Just sayin.

[vadawg]

8. rofl there is a certain humour in the posters reply, i wonder if they would be ok with collections

for poor people for their retirement or is it just okay to laugh at people who are not at the poverty level in retirement... seems that everyone should be thinking that the cash is going to run out before the end..

[stray cat]

10. Do you really think this is unique to the wealthy? I better die working

[emilyg]

11. Not at all.

[pnwmom]

13. The title should really say, "Even the wealthy . . . "

Or, even people who seem wealthy . . .

[spanone]

15. i think about it too

[dkf]

17. $250,000? Wealthy? Is that a joke?

That is one years salary of a moderately wealthy person.

I think what is going to be difficult is the health care costs. Even if I win a somewhat decent lottery I still can't retire with no medical safety net.

[Warpy]

18. I wish they'd stop trying to kid us that the upper middle class is wealthy

They're not. Their investments allow them to continue to live a middle class life after retirement, which means safe housing, reliable transportation, an occasional vacation, and no worries about having more month than money on average. They do have serious worries over whether or not their investments will last them 30 years after retirement, if they'll be enough for medical care not covered by Medicare, and what will happen if one spouse needs long term care.

The wealthy don't have to worry about any of this. Their investment income is sufficient for long term care without considering ever dipping into the principal.

Remember, it takes a minimum of ten million in assets to be able to join the rich man's club these days. People who have saved and invested wisely and retire with a cool million are just upper middle class. They do have worries.

The rich do not.

[StarfarerBill]

19. My heart fair bleeds...

:nopity:

[duphase]

21. Well, with the rising price of polo pony food these days, you

can perhaps feel a little bit of sympathy for those who are struggling to keep both their house animals and their
barn animals fed. Tired people always worry about flation, doncha. The IN kind, not the DE variety.

[Motown_Johnny]

25. So do the poor

[Statistical]

26. 250K is rich? What a joke.

My goal (not sure if I will make it) is to have $1 million tax free in Roth IRA by the time I retire.

Remember everyone forgets the wealth destroying power of inflation. Even with low inflation say 3% per year after 30 years compounded prices have risen a staggering 242%. So a million dollars 30 years from now has same buying power as a mere 400,000 today 600,000 is wealth annihilated by inflation. Remember that is just the compounded effect of low inflation.

Of course 30 years just takes me till the day of retirement (I figure I won't be able to retire before 60). Say I live another 20 years past that (to 80). Again a mere 3% inflation means that prices of goods will rise another staggering 80%. Put that together and if I die at age 80 the price of goods at the end of my life will be a staggering 438% higher than today. A million bucks don't go as far when filling up gas tank (15 gallons) costs $200, and a gallon of milk is $8.

A million is cutting it close to be honest but I doubt I will be able to save more than that. So someone facing retirement with only $250K, no pension, and no healthcare(except medicare) being worried? of course they are. Any middle class person crunching the numbers would be.
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