But there's reason to believe that oft-quoted 80 percent figure is wildly on the high side. That, in turn, makes the retirement calculations based upon it also wildly off. And that means if you're trying to save enough money to produce that 80 percent figure, you may be putting away too much, or skimping unnecessarily on the early years of retirement.
Assumption? That you are merely saving so that you can spend it later. But there are all kinds of other reasons to save. Merely replacing my income doesn't have to be one of them. But the idea that you are saving too much to replace your income is misguided just based upon their own false premises. Just as the as the article admits,
For example, when will you pay off your mortgage and finish helping your kids pay for college? How much will you save in taxes once you're not working? Add in more for costs, such as health care, that could go up.
Exactly! How do you know what inflation will do to your money? We all know that Keynesian economists don't like saving money for one simple reason, every time they print money, they steal from savers! So what is the point in saving in an economy that is built on robbing from our future?
Of course, what if they have no future? The last sentence says it all.
Christopher Van Slyke, a money manager in Austin, Texas. He tells some of his newly retired clients they can start by pulling 5.5 percent or 6 percent out of their portfolios for a few years, as long as they understand that that rate isn't sustainable for three decades.
Of course, it may not have to be. [emphasis mine]
We live in an economy where borrowers do not borrow from savers, but instead borrows printed money. For if everyone borrows, and there are no savers, where does the money come from?
Hey, your money is going to run out anyway. And the implication seems to be that you're probably going to be dead. So don't worry about it.
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