Gen X'ers (like me) FCUKED

R

Robdawg

Junior Member
Indeed, the expenses of a house, car and all the other possessions that go along with being an adult often leave Gen Xers very little to sock away in a 401(k) system that grows money incrementally, said Van Remortel. Even if they are not supersizing their lives and living beyond their means, she said, many Gen Xers — generally defined as those born from 1965 to 1980 — carry significant debt due to college alone. Once they have kids, they begin to worry about saving for their college educations, and retirement planning often drops in priority.



Still, Gen Xers may face bigger financial challenges than their parents and grandparents did. On top of the big mortgages, college loans and the rising child education costs, they face the fact that few employers offer traditional pensions anymore, meaning they take on more of the burden of retirement. Plus, the future of Social Security is more uncertain than ever. Unless Congress makes changes, the trust fund that helps pay for the federal entitlement is likely to be exhausted by 2040 — about the time most Gen Xers hit retirement.


http://www.msnbc.msn.com/id/21083120/
 
Robdawg said:
Indeed, the expenses of a house, car and all the other possessions that go along with being an adult often leave Gen Xers very little to sock away in a 401(k) system that grows money incrementally, said Van Remortel. Even if they are not supersizing their lives and living beyond their means, she said, many Gen Xers — generally defined as those born from 1965 to 1980 — carry significant debt due to college alone. Once they have kids, they begin to worry about saving for their college educations, and retirement planning often drops in priority.



Still, Gen Xers may face bigger financial challenges than their parents and grandparents did. On top of the big mortgages, college loans and the rising child education costs, they face the fact that few employers offer traditional pensions anymore, meaning they take on more of the burden of retirement. Plus, the future of Social Security is more uncertain than ever. Unless Congress makes changes, the trust fund that helps pay for the federal entitlement is likely to be exhausted by 2040 — about the time most Gen Xers hit retirement.


http://www.msnbc.msn.com/id/21083120/
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You can create your own pension if you choose. When you retire, take your 401k and roll it into an annuity that guarantees you a certain payment every month for as long as you live. With todays annuities, your money can continue working for you in the equity market without a risk to your payment amount.... thus, it cannot go down, but it can go up.

Side note: Many of those who had pensions are not to happy right now as they watch their benefits get slashed.
 
The reason I do not like pensions is the same that I do not like our SS system as it is....

The individual has no control over it. It is run by a corporation or the government. YOU do not control your own assets.... and more importantly, the corps and government can take away those pensions and there is litte you can do about it. You put all your eggs in one basket and you must then hope that someone doesn't drop that basket.
 
Indeed, the expenses of a house, car and all the other possessions that go along with being an adult often leave Gen Xers very little to sock away in a 401(k) system that grows money incrementally, said Van Remortel. Even if they are not supersizing their lives and living beyond their means, she said, many Gen Xers — generally defined as those born from 1965 to 1980 — carry significant debt due to college alone. Once they have kids, they begin to worry about saving for their college educations, and retirement planning often drops in priority.


Still, Gen Xers may face bigger financial challenges than their parents and grandparents did.


I drove someone nuts, and got IA'd for making this argument. :cool:
 
SF, the point is that people retiring now have pensions AND 401ks AND gov't entitlements. We're basically going to have to retire off of our 401ks alone.
 
Cypress said:
Indeed, the expenses of a house, car and all the other possessions that go along with being an adult often leave Gen Xers very little to sock away in a 401(k) system that grows money incrementally, said Van Remortel. Even if they are not supersizing their lives and living beyond their means, she said, many Gen Xers — generally defined as those born from 1965 to 1980 — carry significant debt due to college alone. Once they have kids, they begin to worry about saving for their college educations, and retirement planning often drops in priority.


Still, Gen Xers may face bigger financial challenges than their parents and grandparents did.


I drove someone nuts, and got IA'd for making this argument. :cool:
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Really? Who?
 
dawgy the whiner
Genx'rs are making millions more than their parents if they went to college. Loan payments pail in comparison to increased earnings.
It's wussy jellyfish like you that think they need a BMW3 more than a 401K creating much of the problems.
 
Topspin said:
dawgy the whiner
Genx'rs are making millions more than their parents if they went to college. Loan payments pail in comparison to increased earnings.
It's wussy jellyfish like you that think they need a BMW3 more than a 401K creating much of the problems.
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yeah. We're all making MILLIONS MORE. That's the standard that can be applied to just about everyone who's a generation x'er. Toppy - our resident wanna be economist.
 
no pensions.. higher sstax and have to wait longer to get it and its less certain.

3 legged stool became 1.5legs over a generation.
 
SS aint going anywhere you whiners
401K's were not there for the first boomers
the 2.5MM in carreer earnings is from a study of college grads vs not grads tina if you didn't go to a shit junior college of if you ever read the WSJ you might know this.
P.S. % graduating college is higher now than early boomers.
 
LadyT said:
SF, the point is that people retiring now have pensions AND 401ks AND gov't entitlements. We're basically going to have to retire off of our 401ks alone.
Click to expand...

The difference is that they did not have 401ks and pensions at the same time. Those that have both more than likely started with pensions haven't had anything added to them for the period of time they have had their 401ks. No company to my knowledge has offered both a pension AND a 401k. What used to be the pension and profit sharing plans have turned into 401k and profit sharing plans.

As for the government SS plan, you are right, the odds are that we get the shaft.... because the government is in control of our money.

Keep in mind... a pension means nothing if it is not funded.
 
Superfreak said:
The difference is that they did not have 401ks and pensions at the same time. Those that have both more than likely started with pensions haven't had anything added to them for the period of time they have had their 401ks. No company to my knowledge has offered both a pension AND a 401k. What used to be the pension and profit sharing plans have turned into 401k and profit sharing plans.

As for the government SS plan, you are right, the odds are that we get the shaft.... because the government is in control of our money.

Keep in mind... a pension means nothing if it is not funded.
Click to expand...
I have both. Certainly the Pension account is much smaller than my 401K, but I have both.
 
I'm the late boomer 1960 and I have both
pension lumpsum is almost what the 401 is
I agree that 70's and 80's kids won't get the pension
BUt 401K's didn't come along until 78!!!
hardly around for early and mid boomers
 
Yeah GenX'rs will be inheriting the boomers assets too. And with the greatly reduced numbers that will have to pay inheritance tax...

I see it all the time, the kids inherit the farm, sell the farm and blow the money and have nothing in a few years....
What their parents spent a lifetime building up they blow in a few years....

Yep GenX'rs will have it rougher, but they are partially to blame.
 
Topspin said:
SS aint going anywhere you whiners
401K's were not there for the first boomers
the 2.5MM in carreer earnings is from a study of college grads vs not grads tina if you didn't go to a s*&% junior college of if you ever read the WSJ you might know this.
P.S. % graduating college is higher now than early boomers.
Click to expand...


wow. now I know I've arrived. He's attacking my education! :clink:

First of all, As Chap pointed out, benefits are more than likely going to be delayed which eats into your overall earnings, if its not going benefits will definitely be reduced or not going to be equal on a npv basis. And secondly I don't know about your $hit company, but the people that are retiring at my company now and that have been here for 25+ years have pensions, 401ks and can begin to collect the full amount on their SS when they hit 65. This is not going to the case for the majority of generation x'ers and generation y's and generations to follow. And for your $2.5mm difference - please provide a link.
 
LadyT said:
SF, the point is that people retiring now have pensions AND 401ks AND gov't entitlements. We're basically going to have to retire off of our 401ks alone.
Click to expand...


bingo. It served corporate interests to push workers off pensions, and into cash balance 401(k)s.

In the old days, the ideal retirement was a strong, tri-legged stool: pension/savings/social security.
 
Damocles said:
I have both. Certainly the Pension account is much smaller than my 401K, but I have both.
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Is it a pension/profit sharing plan that only sees new contributions in the form of profit sharing?

Or does your company contribute to both a pension and a 401k for you?
 
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