Retirement goal changed due to inflation?

[Cammy]

I remember reading somewhere that the Dems would take away your 401K if they were to win the presidency. Given the current cries of inflation and the devaluing of the dollar due to "printing money", how does that impact retirement goals? The cash that sits in the 401K now keeps losing value as the dollar value declines so basically the Dems aren't taking it away, they are basically making it worthless.

Really getting sick of the shiznizzle that is going on here at work (family owned business and I am not family) and would like to walk away from the drama. Would walk away today making pretty good money a year just going to the mailbox (other sources of income). Don't live high on the hog and am debt free.

Suck it up and take a wait and see approach to see if the inflation is just a blip on the radar or walk? What would HT do?

 

[TOGIE]

buy crypto

 

[BuzzH]

I remember reading somewhere that the Dems would take away your 401K if they were to win the presidency. Given the current cries of inflation and the devaluing of the dollar due to "printing money", how does that impact retirement goals? The cash that sits in the 401K now keeps losing value as the dollar value declines so basically the Dems aren't taking it away, they are basically making it worthless.

Really getting sick of the shiznizzle that is going on here at work (family owned business and I am not family) and would like to walk away from the drama. Would walk away today making $66k a year just going to the mailbox (other sources of income) and currently have 2 years of my paychecks from this job in the bank. Don't live high on the hog and am debt free. Wife can collect SS at 62 with her first check coming in Feb 2023

Suck it up and take a wait and see approach to see if the inflation is just a blip on the radar or walk? What would HT do?

Only you know the answer...its all about comfort level.

 

[Ben Lamb]

Only you know the answer...its all about comfort level.

This.

But - on the work front, you have to decide if it's worth starting over in another place or profession to get away from that drama. I've done it and it's tougher to start over each time. So the drama has to outweigh the risk & chance. Healthcare is the biggest worry so if that's in place, and you are debt free, then it's easier to make the transition if you truly will be comfortable & can sustain that comfort for 20 years or more.

Sounds like a change is desired. Only you know what's right for your family.

 

[406dn]

First, it is no one's fault if you have a large chunk of cash sitting in a 401k, vulnerable to inflation. If you look at what the stock market has done since the election, a 401k account should be up nicely. I know mine is.

Cash is great for its liquidity. But it is not a good investment, over a long span of time.

No one can know your individual situation. Only you know how bad the job is and how much less retirement income you are considering.

I stayed on a job that I did not particularly enjoy, until it had set me up in the manner I wanted. If you have put up with crap on the job for many years, putting up with it to the finish line is one option. Personally speaking, I would not lock myself into a lesser retirement, because of some asshole at work.

 

[BackofBeyond]

First, it is no one's fault if you have a large chunk of cash sitting in a 401k, vulnerable to inflation. If you look at what the stock market has done since the election, a 401k account should be up nicely. I know mine is.

Cash is great for its liquidity. But it is not a good investment, over a long span of time

^^This^^

If inflation is just now entering the picture of your investments and you think you might not have enough to cut loose, it has nothing to do with D or R or whichever numbnut is currently sitting in whatever political office.

 

[Deleted member 18333]

The only part of my retirement being influenced by inflation is the cost of home building. The plan all along was to sell my current house and use that money to build a new home where I plan to retire. Already own the land just need to build. Well, the cost of building in the new place is increasing significantly faster than the value of my current home. I figure I may work 1 or 2 years longer than planned a year ago so that I am not financing anything in retirement.

Doubt it has anything to do with the Biden presidency but it makes me feel better too when I blame it on him.

 

[BuzzH]

Agree with the cash in the bank...the biggest hit you'll ever take to purchasing power and also inflation is money that doesn't work for you (drawing jack-diddly in the bank).

 

[MT Bound]

....the last place I would come to for financial advice would be a public hunting forum, but that's just me.....

 

[mtmiller]

....the last place I would come to for financial advice would be a public hunting forum, but that's just me.....

Wasn't really about financial advice.

 

[Ben Lamb]

....the last place I would come to for financial advice would be a public hunting forum, but that's just me.....

Hey now, most of us are thousandaires!

 

[OH->CO]

....the last place I would come to for financial advice would be a public hunting forum, but that's just me.....

This is likely the funniest response I've seen on this forum

 

[Deleted member 18333]

....the last place I would come to for financial advice would be a public hunting forum, but that's just me.....

I typically find the financial advice on huntalk more solid than the hunting advice.

 

[JohnCushman]

My goals for retirement are to hunt and fish more and get laid. So far the hunting and fishing are shaping up promising.

 

[SAJ-99]

I remember reading somewhere that the Dems would take away your 401K if they were to win the presidency. Given the current cries of inflation and the devaluing of the dollar due to "printing money", how does that impact retirement goals? The cash that sits in the 401K now keeps losing value as the dollar value declines so basically the Dems aren't taking it away, they are basically making it worthless.

Really getting sick of the shiznizzle that is going on here at work (family owned business and I am not family) and would like to walk away from the drama. Would walk away today making $66k a year just going to the mailbox (other sources of income) and currently have 2 years of my paychecks from this job in the bank. Don't live high on the hog and am debt free. Wife can collect SS at 62 with her first check coming in Feb 2023

Suck it up and take a wait and see approach to see if the inflation is just a blip on the radar or walk? What would HT do?

My first advice is to go to some other source for reading material. The first paragraph is so ridiculously political that it isn't worth addressing other than to say in the initial version of the 2017 tax cut bill, there was a significant attempt to reduce the amount a person could contribute on a pre-tax basis. That was how it was going to be "paid for". Figure out who is working for you.

Job- Every job has drama. If it doesn't now, it will at some point. My advice there is to suck it up. Usually, the drama you know is better than the drama you don't.

Inflation- This is trickey. No one can say whether or not it will stay for the long term or is just a blip. Significant inflation requires two things to be sustained. 1) a broad expectation that it will continue and 2) the ability of workers to demand higher wages to account for the loss in purchasing power. So think of your situation this way, you make $66k, is the business you work in able to push higher prices through to the end consumer and can you demand a higher wage because of this (i.e. how easily can you be replaced)?
SS has COLA increases built in, but they have to be approved by law makers. Attacks on that is on pause until 2025. Take that into consideration when thinking of inflation and future amount of those checks you go to the mailbox to collect.

 

[Deleted member 28227]

The only part of my retirement being influenced by inflation is the cost of home building. The plan all along was to sell my current house and use that money to build a new home where I plan to retire. Already own the land just need to build. Well, the cost of building in the new place is increasing significantly faster than the value of my current home. I figure I may work 1 or 2 years longer than planned a year ago so that I am not financing anything in retirement.

This is an interesting trend that I've noticed.

When my grandparents retired they downsized, sold their 4 bed 3 bath, and moved to a small apartment closer to their kids, and or health services.

I know at least 6 different boomers/boomer couples that are retiring and building... and building bigger no less (not sure if that last part is your plan)

Just seems interesting, I can't imagine any other generation in history has had "start construction on a new large home" as part of their retirement plan.

Seems like something that 35-55 year olds do... 3 of the 6 from above are in their mid 70s.

Literally was talking to one of my dad's friends yesterday about lumber prices... he's 74 and building a 4000 sqft house.

 

[Elkmagnet]

I remember when I was the only one I knew complaining about the first check. Now things have gotten all political .

 

[Elkmagnet]

This is an interesting trend that I've noticed.

When my grandparents retired they downsized, sold their 4 bed 3 bath, and moved to a small apartment closer to their kids, and or health services.

In my area its a stellar time to do this!

 

[Deleted member 18333]

This is an interesting trend that I've noticed.

When my grandparents retired they downsized, sold their 4 bed 3 bath, and moved to a small apartment closer to their kids, and or health services.

I know at least 6 different boomers/boomer couples that are retiring and building... and building bigger no less (not sure if that last part is your plan)

Just seems interesting, I can't imagine any other generation in history has had "start construction on a new large home" as part of their retirement plan.

Seems like something that 35-55 year olds do... 3 of the 6 from above are in their mid 70s.

Literally was talking to one of my dad's friends yesterday about lumber prices... he's 74 and building a 4000 sqft house.

Building bigger is not part of the plan. Better finishes, yes, but not bigger. It has more to do with the Rock Springs vs. Star Valley market.

 

[Cammy]

My first advice is to go to some other source for reading material. The first paragraph is so ridiculously political that it isn't worth addressing other than to say in the initial version of the 2017 tax cut bill, there was a significant attempt to reduce the amount a person could contribute on a pre-tax basis. That was how it was going to be "paid for". Figure out who is working for you.

Job- Every job has drama. If it doesn't now, it will at some point. My advice there is to suck it up. Usually, the drama you know is better than the drama you don't.

Inflation- This is trickey. No one can say whether or not it will stay for the long term or is just a blip. Significant inflation requires two things to be sustained. 1) a broad expectation that it will continue and 2) the ability of workers to demand higher wages to account for the loss in purchasing power. So think of your situation this way, you make $66k, is the business you work in able to push higher prices through to the end consumer and can you demand a higher wage because of this (i.e. how easily can you be replaced)?
SS has COLA increases built in, but they have to be approved by law makers. Attacks on that is on pause until 2025. Take that into consideration when thinking of inflation and future amount of those checks you go to the mailbox to collect.

It was not my intent to be political and infer that the Dems were hell bent on taking my money. The point that was poorly conveyed is that the reading material I referenced actually stated that they would take it however, I believe it was to be understood that with inflation and devaluing of the dollar, the purchasing power of money saved would decrease. The decrease in purchasing power would in effect make your 401k "disappear" (read this as not literally disappear, just not have the same impact to your financial situation in the future that you might have planned).

As for "Job". I know drama. 20 year military guy here. Trust me when I say I know drama and government thought process. New job with unknown drama is retirement.

HT is as good as anywhere to pose questions like this. I don't know any of you personally so your answers are void of bias that may impact the truthfulness of a response.