Comments on: Why Some Millionaires Don’t Even Have Enough For Retirement http://www.americanconsumernews.com/2007/12/why-some-millionaires-don%e2%80%99t%e2%80%99-even-have-enough-for-retirement.html Helping Smart Shoppers Save Sun, 21 Mar 2010 20:52:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Pitchlady http://www.americanconsumernews.com/2007/12/why-some-millionaires-don%e2%80%99t%e2%80%99-even-have-enough-for-retirement.html/comment-page-1#comment-2660 Pitchlady Tue, 01 Jan 2008 00:50:59 +0000 http://www.financeispersonal.com/2007/12/why-some-millionaires-don%e2%80%99t%e2%80%99-even-have-enough-for-retirement.html#comment-2660 Um, where did you get the idea that when you retire you have to spend down your capital? If you put a million dollars in 30 treasuries right now, you would get about 45k a year for the next 30 years, WITHOUT TOUCHING YOUR CAPITAL. You'd still have a million dollars at the end of that time. Of course you have to adjust for inflation, but you also have the miracle of compounding. You just need to be sure you get yourself educated about investing while you save that money. There are many many factors besides the simple numbers and inflation -- many kinds of investments, and the tax advantages of some over others. Plus the fact that you can still ALSO spend down your capital if necessary. If you get social security too, and plan for lower expenses (which most people have when they are not working) you will still end up with a buffer to add to the capital and help with inflation. You have to Um, where did you get the idea that when you retire you have to spend down your capital? If you put a million dollars in 30 treasuries right now, you would get about 45k a year for the next 30 years, WITHOUT TOUCHING YOUR CAPITAL. You’d still have a million dollars at the end of that time.

Of course you have to adjust for inflation, but you also have the miracle of compounding. You just need to be sure you get yourself educated about investing while you save that money. There are many many factors besides the simple numbers and inflation — many kinds of investments, and the tax advantages of some over others. Plus the fact that you can still ALSO spend down your capital if necessary. If you get social security too, and plan for lower expenses (which most people have when they are not working) you will still end up with a buffer to add to the capital and help with inflation.

You have to

]]> By: Early Retirement Extreme http://www.americanconsumernews.com/2007/12/why-some-millionaires-don%e2%80%99t%e2%80%99-even-have-enough-for-retirement.html/comment-page-1#comment-2630 Early Retirement Extreme Sun, 30 Dec 2007 21:05:49 +0000 http://www.financeispersonal.com/2007/12/why-some-millionaires-don%e2%80%99t%e2%80%99-even-have-enough-for-retirement.html#comment-2630 Present millionaires have enough for retirement, but in the distant future, a million might not be a whole lot of the government keeps supporting a 3-4% annual inflation. The moral here is not to opt for fixed income investments if you retire today. I remember some comments about one of the authors of your money or your life putting money into 30 year government bonds in the early 80s. The money that they throw off today is not worth nearly as much as it was in the beginning. Present millionaires have enough for retirement, but in the distant future, a million might not be a whole lot of the government keeps supporting a 3-4% annual inflation. The moral here is not to opt for fixed income investments if you retire today. I remember some comments about one of the authors of your money or your life putting money into 30 year government bonds in the early 80s. The money that they throw off today is not worth nearly as much as it was in the beginning.

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