401Ks are a disaster: Column

[meaculpa2011]

155. Except...

for those that planned to retire at the time of the meltdown, the results were devastating. And they probably don't have enough time to make up their losses.

With that said, the article also fails to take into account the HUGE reduction in expenses after retirement. My wife retired last year with a good pension, but not nearly as much as her salary. When we factored in the commuting costs, wear and tear and the reductions in taxes we're actually ahead by quite a bit. She plowed a lot of her salary into enhanced retirement benefits and a 401k which, luckily, we haven't had to touch.

If I drop dead tomorrow, she and the kids will be fine. I should probably hire a food taster.

Also, where we live people over 62 can legally convert their homes to two family. The kids don't use the family room anymore so that frees up about 750 square feet that I can convert into an income apartment if needed. That about offsets the $13,000 per year that we pay in property taxes. When we were first married (Nixon was President) we bought an attached two-family in Queens. It was the only way we could afford our own home. We've had a one family since the '80s, but now the extra income can provide a much more comfortable retirement... although my intention is to keep working until they shovel dirt in my face.

Converting the family home is an option that too many people overlook.

Hey Brooklynite... I'm from Gravesend. How 'bout you?