For anyone born 1960 or later, full retirement benefits don't start until age 67. So, if you're 30 you get full benefits in 2046 or 2047.
I know what you're thinking: who knows if social security will be around that long?!?!Well I have the answer - NO.
To the right is an excerpt from a social security document I received this year. Basically, they expect the funds to run out in 2041.
I know this isn't breaking news, but I was surprised to see it spelled out so directly. Well, at least my folks will see a piece of it.
So where does that leave the rest of us? Because I'm a financial masochist, I keep a close eye on my 401k and IRA. Occasionally I will opt for the special torture of a retirement calculator.
To retire at age 60 and have my current salary, I need to round up $2,573,000.
To reach this 2.5 million dollar goal, I must sock away roughly $2500 month. Sure, I have that lying around.
Hoo-boy is that some depressing s#it.
It gets better...I have this Roth IRA.
When I got laid off in 2003 I rolled my 401k into a Roth IRA. According to, well, everything they tell you, a Roth is this magical thing that will compound like crazy. If you start young enough (like in your early 20's, which I was), a Roth IRA is supposed to make you a millionare by the time you retire.
To date, I have made $750. Ouch!
Here's hoping the CA housing market turns around...
