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AARP Retirement Calculator: Are You Mentally Ready for the Bad News?

Written by Gary North on July 24, 2013

Most Americans have not saved enough to retire at age 65. They suspect this. It bothers them a little, but not enough to (1) use a calculator to find out if they have saved enough, and (2) save more.

It is not enough to suspect that you have a problem. You should find out.

You can do this easily with the retirement calculator that is offered free of charge by the AARP. Step by step, it takes you through the numbers. By the end of the process, you will have some idea.

If you find out that you have not saved enough, what will you do? Will you increase your savings rate? But what will you invest in?

It will do you no good to put your money in the bank. That pays no interest.

If you put it in the stock market, it may go nowhere. Discounting for price inflation, the S&P 500 today is below where it was at the top in the year 2000. And the dividends it paid — hardly any — were used to pay for most index funds’ fees.

What about bonds? If we get into price inflation, long-term rates will rise and bonds will fall. Your only hope is a recession. But you could lose your job in a recession.

So, do you still want to find out if you will be able to retire? You should. Why? You will be more motivated to make plans not to retire.

Click this: calcAARP.

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4 thoughts on “AARP Retirement Calculator: Are You Mentally Ready for the Bad News?

  1. Texas Chris says:

    The good old days of compounding interest are over, or at least on hiatus. Buy silver, buy gold, pay off debt as fast as possible. Learn to live well beneath your means. Brace for the coming collapse, and when it comes be ready to pounce on opportunities that only a crash can produce.

  2. The blunt truth is that there is crash coming that will make the Great Depression pale in comparison. Anyone who thinks they will be able to retire in the future (or stay retired if they already are) are living in a denial bubble that will soon burst.

    I have taken my savings out of traditional (bogus) 'investments' like mutual funds and been investing in things that will always have the same or more value than they have right now – ability to grow food, long term food stores, water purification, firearms, ammunition, and some silver. If you are not or can't quickly become self-reliant, and/or have essential skills that will be needed no matter how bad things get, you will either not survive the crash, or you will be a slave to the state.

  3. I am very disappointed to find that you trust aarp they are nothing more than crooks that take advantage of any who deal with them. Really sad!!!!!!!!!!!

  4. Himagain says:

    Good Morning!
    Both TexasChris & KJQ are offering good advice for the most part.
    I would like to add a couple of thoughts here from the land of Oz:
    1. DO NOT pay off debt. Try and restructure to longest term possible. The way things are going all over you won't have to pay for long.
    2. Get outta town a.s.a.p. Move to somewhere high as possible and not in a town. Certainly not an industrial one.
    (See point 4)
    3. Learn some practical skills that all farmers had 50 years ago. A.S.A.P. (Buy books like "Mother Jones".)
    4. The so-called "Great Depression" of the 30's in the USA was nothing compared to the rest of the world's experience. 70% of Americans still had jobs. Nobody starved. The jobs even came back. Not this time.

    AND The natural System is breaking down irrevocably outside of the "natural cycle" this time. Shortly there will not be sufficient food to go around anywhere. This time it is not a natural occurrence. It is chemically induced suicide,compounded:
    It may take 20 years to have full effect, unless the actually scientifically predictable and predicted next temperature fluctuation – Ice Age – speeds up toward its tipping point.
    Of course, the Western populations will decline much faster now, as the attrition rate from modern living takes out younger and younger people (the graph of mortality from Heart Destruction, Cancer and Fluoride-induced Brain Death (Alzheimers) is going near vertical), but in the West there will be mass migration from other countries that will be almost unstoppable. (USA from Mexico, Australia from all over the Islamic war zones, South Europe from the Temperature Refugees).

    This does read as very bleak, but "They" are trying to con us. Again, As usual. But this time the odds are stacked against us in a triple whammy:
    The economy based on people and jobs is defunct. China is working on laws to force privateer companies to employ humans and not robots.
    The chemical regime has destroyed the crop genetics. There is virtually no diversity left – not even in Manchuria.
    The weather is moving into the natural cycle of the next Ice Age. ( It is overdue. They normally happen regularly every 20,000 years, but thanks to us humans warming the place up a bit, it is running late.
    Ironic isn't it? The whole con job of CO2 and warming………….