Retirement
sounds a bit odd to discuss it here, but a lot of people are seriously preparing themselves for the inevitable, even though they are in their mid 20's. a friend of mine says that the household income has to be atleast $100K/yr (from a very early age) to make sure the parents have a safe retirement and the kids get education in a decent school. thats really scary. so far I was under the assumption that 70-80K per yr was more than enough.
well lets see, education costs have risen up by more than 30% over the last yr alone. at UCSB, where I got my MS, the fee per quarter for a state resident is about $4000....... which means a 4 yr education will roughly cost around $50K for one kid alone. and thats just the fees. to have that kinda money, on top of the home mortgage payments and retirement savings ........ I wonder how people manage.
better start planning, if one even thinks of settling here for a long term.
this only makes me question the pricing structure in the US. more on that later.
3 Comments:
Quite a lot of my friends have started planning for retirement... some thoughts are coming up in my mind as i am in my late 20s.. costs ahead are really really scary! But it wd hav been the same in the prev generation as well... didn't they manage?
- Chakra.
actually NO. the inflation is about 4% and the yearly pay rises are barely enough to catch up with it. for the previous generation, lot of expenditures were stable for a long time. just look at oil prices and that alone will make a lot faint. moreover kids, and adults indulge in a lot more activities these days.... gone are the days where the whole family sits and watches together the single channel broadcast. a tv a room is the order of the day, and thats just the tip of the iceberg.
Thank you Jagan. I sure will read that book. looks interesting too.
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