401k Shit the Bed?

[Benton]

(03-12-2020, 10:41 AM)TheLeonardLeap Wrote: Because there's a cap on what people can get back in social security.

In 2020, the most a single person can get per year in SS payments is ~$9,400. A person with a spouse can get ~$14,100.

SS isn't meant to be a system where rich people pay for your retirement. It's a system to help you pay for your own retirement financial security. If you are making over $137k a year, you theoretically shouldn't need the government to help you plan for your retirement's financial security. (I would argue you shouldn't be forced to regardless of what you make, but that's not what this thread is about.)


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Not to mention that depending on where you live, $137k/yr doesn't make you "rich". 

$137k in Washington DC, for example, is the same level of living as $70.5k in Cincinnati.

Well that's a concise answer.

My only other comment would be: 401ks are garbage. It's a waste of money for middle class earners. You'd be better off taking your 6% annual and dropping it on scratchers.

Why? Because the market has no regulation. You're hoping that it continues to grow over the course of your life with no significant downturns. Like those in the 80s, the 00s and now.

I sold off my stocks years ago and bought up supplies of toilet paper. Never spoils and once every pandemic you cash in. Who's laughing now?



Seriously, though, banking your golden years on corporate America doing well is insane. Best bet? Buy dirt, plant a garden and come to terms with the fact that none of us live forever.