"Jonathan Cook" wrote in message
...

I agree strongly with riverman. I like you Dave but you are being
_way_ too generous and absolute on your expectations of the future.
5% return in the long run is _extremely_ optimistic.


I think you are not thinking clearly and pessimistic. One, LaCourse has
mentioned his three pensions. Without knowing his situation he would have a
naval pension, his private company contributions and savings, then good ole
social security. You and Mark are part of a dying breed of potential
retirees in that you work for governmental units which are the last bastion
of the defined benefit pension program. It is said that the underpaid public
servant of today will be tomorrow's well off retiree because of their
pension plans.

In theory your needs for build a large next egg is not as great as myself
in that you will receive a benefit from retirement to death from the
university or state retirement system. Question: What group of institional
investors by and large are the largest single group of investors in the
market? Answer-State Employee retirement programs.

That he was probably savy enough and had the discipline to put his military
retirement he has been drawing for some 20 years into investments is paying
dividends for him does not mean his message is wrong (this time ) While
the market goes through its highs and lows, the fifty year return is over
8%. Even with all the pitfalls you mentioned, does one forget about
tomorrow? Retirment strategy should be a combination of things for most
people, getting one's house paid for would not be a bad idea either before
retirement.

Using social security as the primary safety net (and don't think for a
second they're going to let it go away-the current admin's thought process
to the contrary), those of us in defined contribution programs have to build
as much as we can, work longer, or die sooner. Whether you use an IRA, a
401-k, or a 403-B the key is to get something going. The government changed
it's treatment of traditional IRAs so for most a 401k or 403b makes more
sense in that one can put away a good junk of their earnings tax deferred
and often get a match from their employer. And it's no harder than starting
from your next raise and putting it away. If one is in his/her40's or 50's
they really need to find some way to get busy but a 21 year old just
starting out with their first job it should be easy. They had no money
before so why not live on 90% instead of 100%? You also discount the tax
effect on the 401-k contributions. My net pay is actually a few dollars
higher with my 403b contributions than without it .

not everyone is so fortunate.

Not everyone is so fortunate as Mr. LaCourse but most middle class members
can and should put something away, there's enough tax advantages to it to
make it foolish not to try. Saving for retirement retirement may be hard
for some but so is working until you're 80.