Originally Posted by 742Dash

And good luck with that in your 401k and IRA. But then I bet that your parent has something to sell to me.

The problem we all face as we age is that we can not participate effectively in the bond market at the individual level. Nor can can we buy an annuity without financing some insurance agent's new 911.

When I was in my 20s, 30s and 40s I spewed this same line. On my previous airlines forum on CompuServe (I am that old) I refereed to defined benefit plans as things that crawled out of the Wall Street sewer.

The reality is that we have been sold a bill of goods that is deeply flawed. Having "our own money" makes us prey to longevity risk, while at the same time making us prey to any number of scams that claim to address it. Want to buy bonds? Nibble at the crumbs from the grown up's table and pay 1% for the privilege, but don't worry because the markup is hidden and you won't see it. Want to buy an annuity on your own? No problem -- after we give slimeball his 4%.

Reality is that retirement is a set of tactics, starting with having your basic living cost annuitized (SS and something you buy or that is company benefit). Then using the rest for discretionary expenses and inflation.

Good luck with the annuitizaiton element. At least your parents's cut might end up in your inheritance.