Obama's wants to cap tax credits on IRAs (Page 2)

^^^^

I bit my tongue so that I wouldn't get in trouble but that is exactly what I was thinking.  I'll just lower my 401k contributions and buy more gold, silver and guns.  Our government can continue to devalue the dollar and passing bans so that they make my stuff continue to climb faster than anything dollar based. 

No disagreement there. 

5% return on 3 mill is 150k a year.  You can still have 3x the median us household income per year and leave 3 mil for your kids when you die (That doesn't even include your house/condo).

Really? Then why do only .03% of people have this much? 

btw - If you make 50,000 this year, and average 3% more every year, and save 15% of you income (total – including company matches, etc,) you should be able to get close to $3,000,000 in 40 years (assuming you average 8.5% investment return over that period)

 So, those of you that think this is is just another way to get money from ‘those mean old rich guys’ think again.  This is likely you and your neighbors.

btw - If you make 50,000 this year, and average 3% more every year, and save 15% of you income (total – including company matches, etc,) you should be able to get close to $3,000,000 in 40 years (assuming you average 8.5% investment return over that period)

 So, those of you that think this is is just another way to get money from ‘those mean old rich guys’ think again.  This is likely you and your neighbors.

Most people who make $50,000 are not able to put away 15% of it.  That leaves $35,000, after taxes, say $28,000.  That's not lots and lots off which to live, especially for those supporting families.

Check your math

btw - If you make 50,000 this year, and average 3% more every year, and save 15% of you income (total – including company matches, etc,) you should be able to get close to $3,000,000 in 40 years (assuming you average 8.5% investment return over that period)

 So, those of you that think this is is just another way to get money from ‘those mean old rich guys’ think again.  This is likely you and your neighbors.

Read this on my phone the other day. Don't recall it mentioning anyone with a $3 million target, but the conversation regarding savings rates for retirement made me think about it. 

USA Today Extreme Early Retirement Article

This I think is where the big generational difference comes in. All of those numbers were realistic over the last 30-50 years. I don't think those are realistic expectations going forward. Look at the rates of return over the last decade. We are in our very own Japanese style lost decade(s). I saw a news blurb this morning, corporate profits are at an all time high as a % of GDP while wage income is at an all time low. Congrats to you on your accomplishments, but as a 28 year old person working in a "professional" job I don't expect to ever be able to come close to that.

For instance, I've worked my butt off and took my current job at a relatively low salary with the expectation that I could earn more by being good at my job. Last October, low and behold my boss tells me he wants me to stick around and to show it he offers me a sweet 16% raise. Awesome! Our raises take effect on our 1st paycheck in April. Late March rolls around and our CEO sends out a wonderful email: no raises are allowed this year. Wonderful. I will be able to make a comfortable enough living at my current employer, but I don't ever expect to get rich here (yes, I consider $3M to be rich).

OK maybe a slightly sensation headline.. just kidding...

http://money.cnn.com/2013/04/10/retirement/obama-retirement-saving/index.html?hpt=hp_t4

He wants to remove the tax benefits from IRAs exceeding $3 million.  $3mil is not exactly an extravagant amount money to retire on, especially considering the current rate at which the Fed is printing money and hence the cost of goods and services are rising.

Just yet another way the government feels they know better than you.  They know how much you need to "retire comfortably."

And yes, it'll effect a relatively small # of people.  But that's not the point...

btw - If you make 50,000 this year, and average 3% more every year, and save 15% of you income (total – including company matches, etc,) you should be able to get close to $3,000,000 in 40 years (assuming you average 8.5% investment return over that period)

 So, those of you that think this is is just another way to get money from ‘those mean old rich guys’ think again.  This is likely you and your neighbors.

.. That's fine.  I never said that everybody would or should save for a comfortable retirement.  My point is that everybody can do it if they choose to work toward it.

I that situation, if you stay to your employer, then that is your choice.  That’s fine – there’s more to life than making more money.

But if you want to increase your income, find another job.  If you cannot do that, learn new skills to make yourself more valuable. If I choose to do those things, though, then don’t start to question how much I deserve to have in retirement and speculate on how much I need (as other posters have).

btw - If you make 50,000 this year, and average 3% more every year, and save 15% of you income (total – including company matches, etc,) you should be able to get close to $3,000,000 in 40 years (assuming you average 8.5% investment return over that period)

 So, those of you that think this is is just another way to get money from ‘those mean old rich guys’ think again.  This is likely you and your neighbors.

So under your assumptions, which also means the $3mil level doesn't go up, that person would not be subject to any taxes that don't already exist.  Ya know, since the new proposed tax would kick in only on money over the $3mil limit.