$7 trillion in cash waiting to hit markets?

[phlemboy]

When it comes to retirement savings. It amazes me that people are planning to be poor in their "golden years". Is that what you work all your life for? The logic is that your home will be paid off, the kids are grown, etc... But here something they're missing. You're also getting older & sicker! I work in healthcare. I've seen recent retirees get a prolonged illness and end up in a nursing home. If you're paying for health insurance, that gets expensive along with copays,prescriptions, etc.. Not to mention that people are living longer, which means they'll need more money. I've seen the cost of healthcare LITERALLY wipe out an entire retirement fund in 5yrs. I get to know my patients very well and they tell me these things as a warning. Time and time again they've told me,"Take what think you'll for retirement and triple it!" Then end up getting to the point where they can no longer afford health insurance. They have to apply for Medicare/Medicaid. The kicker is  that you can't have more than $2000 in assets to qualify for Medicare/Medicaid. So you're forced to be poor. Like was stated in the previous posts, this all changed the day that the 401K's replaced the true pensions as a retirement vehicle. The cost was shifted to the emplyee's side and they were forced to put all that money into "expert" money managers and hope and pray it works. The true pensions cost the employee nothing but a lifetime of work and had little/no risk. They still have to work a lifetime. But the cost and risk is all on them...

[BLL]

They have to apply for Medicare/Medicaid. The kicker is  that you can't have more than $2000 in assets to qualify for Medicare/Medicaid. So you're forced to be poor.

That's why everyone should do estate planning before they get sick.

[phlemboy]

You're right BLL. I also think its a good idea to have long term care insurance. But I believe the reality is that people don't think they'll need these things. They also believe that somehow the govt.(or somebody) will take care of them. It's a recipe for disaster in my opinion. My retirement plan is to eliminate personal debt, increase "passive" income. I realze that rental income in ot passive, but it sure beats trading hours for dollars and/or relying on other people's expertise for my retirement.

[j1dias]

My retirement plan is to raise kids. And spoil them. They will spoil me in my old age... :O)