Canadian Bills Fan Posted April 28, 2015 Share Posted April 28, 2015 I know this sounds Canadian but I dont have a 401K and have no idea what it really is or how its different from a retirement fund lol CBF Link to comment Share on other sites More sharing options...
stevestojan Posted April 28, 2015 Share Posted April 28, 2015 (edited) Put 17% into my 401k (that's the maxed allowed) because I started working at my company 4 months after they stopped offering pensions. Admitedly I need to look into other options (Roth) but know very little about them. Edited April 28, 2015 by stevestojan Link to comment Share on other sites More sharing options...
May Day 10 Posted April 28, 2015 Share Posted April 28, 2015 I have a bunch locked into a 401k, roth, a few individual stox to hold... and a house. Keep adding as I can. Really committed to it when I was about 27. Im 36 now and feel like Im on the right track, barring global catastrophe. My goal is to retire at 59 1/2. Link to comment Share on other sites More sharing options...
dbmu1977 Posted April 28, 2015 Share Posted April 28, 2015 A golf course in the south sounds like a fine place to retire. After I hit the derby this week I might buy one, ya right. Link to comment Share on other sites More sharing options...
plenzmd1 Posted April 28, 2015 Share Posted April 28, 2015 Put 17% into my 401k (that's the maxed allowed) because I started working at my company 4 months after they stopped offering pensions. Admitedly I need to look into other options (Roth) but know very little about them. Hey Steve...obviously at that rate you will be fine. Quick question, do they have any kind of stock purchase plan there? Just curious how that would work . Link to comment Share on other sites More sharing options...
/dev/null Posted April 28, 2015 Share Posted April 28, 2015 Put 17% into my 401k (that's the maxed allowed) because I started working at my company 4 months after they stopped offering pensions. Admitedly I need to look into other options (Roth) but know very little about them. Does your employer match any of that 401k contribution? My biggest reservation with the Roth has always been that by the time I'm eligible to retire, Uncle Sam will have found a way to double dip Quick question, do they have any kind of stock purchase plan there? Just curious how that would work . Varies by company, but the most common that I have seen is they deduct your contribution from each pay check and hold it in escrow until the end of the quarter. Then they sell you stock at the quarterly low Link to comment Share on other sites More sharing options...
KD in CA Posted April 29, 2015 Share Posted April 29, 2015 Do I have a pension? A previous employer had a pension plan. The limited time I was there I am entitled to a pittence, like less than $100 month by the time I reach retirement age. But still $100 a month more than I would have had otherwise I have one like that from my first job out of college. I just made the five year vesting cliff before I left, so $300/month when I retire! Woo!! Otherwise, just trying to knock out the 401k max each year and sock enough into the kids' 529s. Link to comment Share on other sites More sharing options...
plenzmd1 Posted April 29, 2015 Share Posted April 29, 2015 Varies by company, but the most common that I have seen is they deduct your contribution from each pay check and hold it in escrow until the end of the quarter. Then they sell you stock at the quarterly low Oh, I know lots of different ways stock purchase plans can be accomplished, just curios how Steve's would work. My gut says no option like that, but if he does , it would be cool to know how they do it. Link to comment Share on other sites More sharing options...
stevestojan Posted April 29, 2015 Share Posted April 29, 2015 We do not have stock options. We do have a profit sharing an that contributes to our 401k as well. Link to comment Share on other sites More sharing options...
plenzmd1 Posted April 29, 2015 Share Posted April 29, 2015 (edited) We do not have stock options. We do have a profit sharing an that contributes to our 401k as well.Thank you. Was wondering if you an an option to buy stock in a purchase plan...but I just could not figure out how that would be possible LOL. My wife been with same company 23 years, public with a stock purchase plan, 401 k match etc, ....covers for a dip chit like me. We are both in early 50's, and that compounding chit they talk about is really true So, kids, as they always they always say...SAVE EARLY Edited April 29, 2015 by plenzmd1 Link to comment Share on other sites More sharing options...
Marv's Neighbor Posted April 29, 2015 Share Posted April 29, 2015 Planning will only get you so far. Look at all the: auto workers, steel workers, airline employees etc. that lost their pensions due to "bankruptcy." How many WNY'er's know about PBGC? People work 20-40+ years, for the same company, and have huge pieces of their financial futures just fall away. If you end up with PBGC, you're dealing with the government, so it's being paid for by the taxpayers. A PBGC pension is a much reduced benefit and has no COLA adjustments-ever. What you see is what you get, till you die, hope you can make it!. Social Security is taxed when it goes in AND taxed when you withdraw it, thanks to Pres. Clinton. I don't trust ROTH IRA's because who's to say that those rules won't be changed too? It's not a very pretty picture for a whole lot of people! Link to comment Share on other sites More sharing options...
Nervous Guy Posted April 29, 2015 Share Posted April 29, 2015 401K and pension. So for you pension experts....lump sum or annuity? I have an option since I was recently laid off..., do early retirement take the lump throw it in an IRA (potential to double in 7 years), or just wait another 7 or 8 years and take then make the decision (lump sum or annuity)...already ran the models through Fidelity and if I let the pension sit there it'll grow a max of about 2-3% per year for 7 years. It'll be interesting to see replies on this one. Link to comment Share on other sites More sharing options...
plenzmd1 Posted April 29, 2015 Share Posted April 29, 2015 401K and pension. So for you pension experts....lump sum or annuity? I have an option since I was recently laid off..., do early retirement take the lump throw it in an IRA (potential to double in 7 years), or just wait another 7 or 8 years and take then make the decision (lump sum or annuity)...already ran the models through Fidelity and if I let the pension sit there it'll grow a max of about 2-3% per year for 7 years. It'll be interesting to see replies on this one. Well I have no idea which one is better, but I think the thought of retirement money doubling every 7 years is a big stretch right now . Chef would be the guy who knows, but he doesn't need advice, not give it for free! Link to comment Share on other sites More sharing options...
Marv's Neighbor Posted April 29, 2015 Share Posted April 29, 2015 How stable is your Company? Will they still be around in 7-8 years? If they are merged or acquired, what happens to the pension promise? 401K and pension. So for you pension experts....lump sum or annuity? I have an option since I was recently laid off..., do early retirement take the lump throw it in an IRA (potential to double in 7 years), or just wait another 7 or 8 years and take then make the decision (lump sum or annuity)...already ran the models through Fidelity and if I let the pension sit there it'll grow a max of about 2-3% per year for 7 years. It'll be interesting to see replies on this one. How stable is you company? Will they still be around in 7-8 years, and beyond? If they are merged or acquired, what does that do to your pension? I think the doubling in 7 years is unrealistic but if that's true, how does that compare to the 2-3% over the same period? You need a couple of reliable financial opinions before you make any moves. Most individuals are unequipped to correctly handle such a lifetime decision. I am not a financial adviser, but have been faced with a similar situation, except I didn't have the choices that you seem ti have. Best of luck! Link to comment Share on other sites More sharing options...
KD in CA Posted April 29, 2015 Share Posted April 29, 2015 Planning will only get you so far. Look at all the: auto workers, steel workers, airline employees etc. that lost their pensions due to "bankruptcy." How many WNY'er's know about PBGC? People work 20-40+ years, for the same company, and have huge pieces of their financial futures just fall away. If you end up with PBGC, you're dealing with the government, so it's being paid for by the taxpayers. A PBGC pension is a much reduced benefit and has no COLA adjustments-ever. What you see is what you get, till you die, hope you can make it!. Social Security is taxed when it goes in AND taxed when you withdraw it, thanks to Pres. Clinton. I don't trust ROTH IRA's because who's to say that those rules won't be changed too? It's not a very pretty picture for a whole lot of people! This is why the defined benefit system has largely been discontinued by private enterprise in favor of defined contribution plans. Government should do the same. The problem with defined benefit plans is that you can only guess how much money you need to invest today to pay people retirements in 40 years. Compound that with the rules that allow under-funding (even after taking the best guess), which bad management, corrupt unions and government all are happy to continue to allow (so they can get what they want today regardless of what happens in the future), and you have a recipe for disaster -- everyone is happy to dump the liability onto the taxpayers, who are certainly justified in wanting reasonable limits on retirement benefit promises that exceed the available funds. With a defined contribution plan, the money goes into your account right now. No surprises, everyone knows what's in there. The employer doesn't owe you anything. Link to comment Share on other sites More sharing options...
DrDawkinstein Posted April 29, 2015 Share Posted April 29, 2015 (edited) Rental Properties is my answer. I currently have 4, and am slowly building my mini-empire. Counting on those rent checks as income in my later years, and worst case scenario, I can always sell and take the pile of cash. The renters will pay off the houses for me over the next couple of decades, and then Im sitting on free money so I dont need to worry much about property values. Edited April 29, 2015 by DrDareustein Link to comment Share on other sites More sharing options...
Nervous Guy Posted April 29, 2015 Share Posted April 29, 2015 How stable is your Company? Will they still be around in 7-8 years? If they are merged or acquired, what happens to the pension promise? It's stable, but not if you work there! They would do the acquiring or merging, trust me. No one big enough to eat them. How stable is you company? Will they still be around in 7-8 years, and beyond? If they are merged or acquired, what does that do to your pension? I think the doubling in 7 years is unrealistic but if that's true, how does that compare to the 2-3% over the same period? yeah...probably double in 10 years at an average of 7% growth/year. You need a couple of reliable financial opinions before you make any moves. Most individuals are unequipped to correctly handle such a lifetime decision. I am not a financial adviser, but have been faced with a similar situation, except I didn't have the choices that you seem ti have. Best of luck! I'm lucky to have options...just wanted to see the advice I'd get from these knuckleheads. Link to comment Share on other sites More sharing options...
ICanSleepWhenI'mDead Posted April 29, 2015 Share Posted April 29, 2015 401K and pension. So for you pension experts....lump sum or annuity? I have an option since I was recently laid off..., do early retirement take the lump throw it in an IRA (potential to double in 7 years), or just wait another 7 or 8 years and take then make the decision (lump sum or annuity)...already ran the models through Fidelity and if I let the pension sit there it'll grow a max of about 2-3% per year for 7 years. It'll be interesting to see replies on this one. Depends a lot on how good you are at managing your own money, and your expected longevity. Personally, I'd lean towards the limp sum, but FWIW: http://wealthmanagement.com/data-amp-tools/six-ways-pension-annuities-almost-always-beat-lump-sum You also might find this helpful when evaluating your options: http://betterexplained.com/articles/the-rule-of-72/ Link to comment Share on other sites More sharing options...
plenzmd1 Posted April 29, 2015 Share Posted April 29, 2015 Rental Properties is my answer. I currently have 4, and am slowly building my mini-empire. Counting on those rent checks as income in my later years, and worst case scenario, I can always sell and take the pile of cash. The renters will pay off the houses for me over the next couple of decades, and then Im sitting on free money so I dont need to worry much about property values. Would love to get into that...I may PM you for some advice. Link to comment Share on other sites More sharing options...
DrDawkinstein Posted April 29, 2015 Share Posted April 29, 2015 Would love to get into that...I may PM you for some advice. Of course! Feel free anytime. Link to comment Share on other sites More sharing options...
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