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Investing/Strategies / Retirement Investing
|Subject: Re: Retirement, college, and Obamanomics||Date: 12/30/2012 7:45 PM|
|Author: 2gifts||Number: 71117 of 82022|
I am really confused by some of your assertions,and wonder how much you know about how the various programs work.
I'm starting to second guess how we are saving. I can't help but to think that we are saving a lot (about 25-35% between savings, retirement, and college savings - we each make about $100k/ year), but i am going to end up paying for my kids' educations ( have 2 kids) as well as other peoples' who haven't saved, and also paying for other peoples' retirement who haven't been as disciplined (within 20 years, is it really likely the government will confiscate my 401k and ira (we max out both, but make sacrifices to do it!). What's the point?!? I feel people who have slacked off will get the same education for their kids and have the same level of retirement as us.
What makes you think you will pay for other people's kids to go to college because they haven't saved enough where you will have? Do you understand how financial aid is calculated, and more importantly, how it is given? The FAFSA forms typically use income and not assets and savings to figure out how much a family can contribute, although quite a number of private schools also ask for additional information through the CSS Profile that also looks at assets including savings.
In addition, the vast majority of aid is given as loans which must be paid back. So would you prefer your kids to have a lot of loans like someone who hasn't saved, or would you prefer they start out without all of that? That's the real difference.
Also, I preferred that my kids got to choose schools based on where they wanted to go and not who gave out the most aid and were the only places they could go due to the financial considerations. Wouldn't you rather your kids be in that position as well?
As far as confiscating your retirement savings, I'm really hard-pressed to think Congress would ever agree to that, especially as it seems difficult for them to agree on much of anything at all. If you really think this is where things are headed, then don't save and see if you are right and can be the beneficiary of all those hand-outs you seem to think will be available to people retiring. I prefer not to take such a gamble, or to take the chance that you are right and I would lose my savings to such a taking as I'd still rather be in that position than the one where I have to hope that there are enough programs to support me in retirement, although I highly doubt it would be much in the style I would prefer, and think it is more likely to be subsistence level. I watched my FIL have to live on all of those programs because he had nothing, and it is not a life I would ever choose on purpose, so I will continue to save for my retirement.
I'm sure others will offer more thoughts.
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