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10/20/2017 1:01:18 AM
9/22/2017 12:11:25 AM
Posted: 9/1/2005 5:30:11 AM EDT
How many of yall work for a company that has a pension plan?
How many are saving for retirement?

How much do you save for retirement?

I dont think many people are saving specially the guys in there 30's.
How will that affect the economy in 25 to 30 years when people want to retire and cant?

Im not saving much.. $180.00 per week in retirement... I'm worried what about you guys?
Link Posted: 9/1/2005 5:39:43 AM EDT
My company has a pension plan, not what it used to be since they changed to the cash balance type, better than nothing. Currently putting 5% of income into company 401K which they match 50%, then putting $4,000 a year into a Roth. Also saving $1,000 a month into savings and making extra mtg principal payments. I refuse to put more assets into the stock mkt, dont want all my eggs in one basket
Link Posted: 9/1/2005 5:55:49 AM EDT
Most younger workers (under 35) today do NOT have pensions. The traditional pension plan (you get 50 or 60 or 70 % of your best three years etc etc) is quickly dying... American companies like GM, Ford, Delta, etc have had these types of obligations have realized that they cannot support 10 or 20 thousand retirees for forty years from age 55 to 95...

The end result is simple: The introduction of the 'contribution' plans. Call 'em 401(k)s, 403(b)s, 414(h)s, or whatever, they work the ame way... If you want retirement income, YOU set aside part of your pay today, let it grow tax free for years, and they tax and withdraw it later. If you are working for a good company, they'll chip in some to help too.

Most people who under 40 never think about retirement funding. Its 20 or 30 years away, and they are more concerned with buying a new car and a bigger house. This is a HUGE mistake...

How much do you think you need for retirement? Half a million? A million? News flash: That ain;t enough. If you retire at 55 in the year 2025 with a half million bucks, you are going to be flat assed broke before you can even begin to collect Social Security (if it still exists) at age 62.

I'm 38. I'd like to retire at 55, but it will not happen. 60 to 63 is more likely. Thats 25 years out. I'd like the equivalent of about $35,000 a year in today's wages. That means I'll need about $70,000 a year then to equal the purcahsing power of $35K today...

If I live to early nineties, and assume social secirity is busted (and it looks like it will be), I need to take care of myself. I need a LOT of money to ensure I get that $70K a year, and to ensure that my income grows as inflation grows. I need a BIG nest egg to provide that kind of secure and regular income. Try TWO MILLION give or take ...

$180 per week = $9360 per year. I don't know how old you are but for arguement sake say you are 25 years out. Assume a modest 7% return rate, and annual contributions of $180 per week. In 25 years you'll have just shy of $600,000.

If your are 55 and retire with that $600K you are not in good shape. Assume you make 7% and inflation is about 3.5%. You'll need to tkae $70000 to roughly equate $35 K today. You'll need to take a little more each year after that. The end result is a ZERO balance inside aq decade.

Scary aint it?

How much am I saving? Depending on the year its been 23 to 28% of income...

How wil it affect teh ecomomy? It will be HUGE. Massive. Unthinkable. All these schmucks are happily chugging along buying new homes for $250,000 and more, taking 30 years mortgages, and carrying lots of debt on the new SUV. They are just living paycheck to paycheck until they hit 45 and start thinking about retirement. The news will be crushing: It will be too late. They will likely have to work until they are 70. It will be too late for the magic of compounding to work. There will be no convenient company pension. There will be no real savings on hand ($100 or $200,000 is chump change). And the government will be too damned broke (SSI will be DONE) to help out.

Too bad so sad. It's too damned late. Better get your wrinkled gray haired ass outta bed and get to work. You have a mortgage to pay and medicine to buy....

No one is worried about this because the mortgage payment is due next week and gas is $3.35 a gallon today. We (as a country) are living paycheck to paycheck. We cannot even begin to think about money on teh 30 year horizon. We want our 3500 sq foot four bedroom three bath Mc Mansion or the new 4x4 SUV NOW dammit.....

It's going to be very very ugly...

Link Posted: 9/1/2005 6:01:09 AM EDT
I retire in 16 years. I'll have a pension with health care and about $650,000 in liquid assests. I should be O.K..
Link Posted: 9/1/2005 6:10:26 AM EDT
My "retirement" plan involves a big scary rifle, couple cases of ammo, stolen Ferrair, high speed chase, lots of news coverage, a few choppers and a fiery crash at the end.







Ok ok, seriously. Company had pension plans (We just lost them), also have 401k, then myself I've set up a Roth IRA, Scottrade account and ING savings account.
The latter 3 dont see much money though, I piss most of it away on guns n shit.
Link Posted: 9/1/2005 6:11:09 AM EDT
I have a 401k, retirement, but that is 25 1/2 years from now
Link Posted: 9/1/2005 6:11:32 AM EDT
401K
Link Posted: 9/1/2005 6:15:42 AM EDT
Tagged, untill I have time to type.
Link Posted: 9/1/2005 6:18:01 AM EDT

Originally Posted By frozenny:
All these schmucks are happily chugging along buying new homes for $250,000 and more, taking 30 years mortgages, and carrying lots of debt on the new SUV. They are just living paycheck to paycheck until they hit 45 and start thinking about retirement.




That's an arguement for paying off your mtg even though in a rosy scenario if you can get a 8% return a year as far as the eye can see you'll supposedly come out ahead. A paid off house is piece of mind and negates having to use your retirement investments for housing payments. What if you put all your money into stocks chasing that magical 8% instead of house principal and bam! Stock mkt goes way down like tech stocks did in 2000/1? It's only a paper loss they say, well hard assets like a paid off house for retirement is better than paper. You wont wake up and see half you house gone like your stock portfolio, unless you live in NOLA
Link Posted: 9/1/2005 6:37:13 AM EDT
This should go to the investment board.

Do I have a plan? Yep.

Am I relying on Social Security or my company's pension plan? No.

I am considering partial retirement before I'm 40.
Link Posted: 9/1/2005 6:41:19 AM EDT
[Last Edit: 9/1/2005 6:41:41 AM EDT by Jon3]
Been paying into 2 different 401s since I turned 21.

I make double payments into them now, and I take the tax hit to do it.

My Condo will be paid off before I turn 40.

I'm not counting on social insecurity for more than the price of a cuppa coffee and a newspaper.
Link Posted: 9/1/2005 7:05:11 AM EDT

Originally Posted By DoNotTreadOnMe:
How many of yall work for a company that has a pension plan?
How many are saving for retirement?

How much do you save for retirement?

I dont think many people are saving specially the guys in there 30's.



I'm 33. I didn't start saving for retirement until I was 27, and I think that was late enough as it is!

We have a cash balance pension plan. The company pays 5% of my salary into it, without any contribution from me.

We also have a stock ownership plan. The company pays 2% of my salary into it, which is used to buy company stock. No out of pocket contribution from me on this plan either.

Last, we have a 401k plan. The company matches up to 4%. I have been maxing this out since I started participating.

Beyond that, I save and invest another $1000 (usually more) per month.

I'm doing okay for being 33, but I wish I started earlier.
Link Posted: 9/1/2005 7:10:34 AM EDT
Roth IRA since I was 18
Link Posted: 9/1/2005 7:23:17 AM EDT
Yep.

Someday I'm going to be leaning on my walker (with the manditory yellow tennis balls), wearing my stylish red vest and blue cap and say to you.....

<­BR>

"Welcome to WalMart"

<­img src=/images/smilies/smiley_abused.gif border=0 align=middle>
Link Posted: 9/1/2005 7:35:30 AM EDT
Frozenny great explanation of the problem. As you said everyone’s future is in their own hands. I work in the financial services industry. I sell money management services to stockbrokers/financial planners.

It’s pretty basic now. Our retirement is no longer the responsibility of your employer. Companies that used to provide pension plans no longer do. The companies had to carry these on their balance sheets as a liability.

Now we have to control our own financial futures through 401k, 403b, IRAs, and other retirement vehicles. Most companies will match your contribution to a certain percent (i.e. the first 3% dollar 4 dollar).

The two biggest factors are time and the dollar amount of your contribution. The earlier you start the less you will have to contribute. You can go to Vanguard or Fidelity’s websites and they have calculators that will help you figure out how much you should save. Generally, you would need about 80% of your current income to retire and maintain your current lifestyle.

Best idea is to pay yourself first!! If you take out x $ from your paycheck you would be surprised how you can adjust your lifestyle.

Social security for people now in their 30’s and 20’s probably will not exist after the baby boomer generation wipes it out. It is too tough of a political football to handle. I think you will see people working much longer. No longer will people retire at 65 but 75. It’s going to be a very different future for us (20, 30, 40 year olds) then it is now.
Link Posted: 9/1/2005 7:36:33 AM EDT
Yes, part of it's in here:

Link Posted: 9/1/2005 7:55:19 AM EDT
Traditional IRA - max contributory since I was 18 (now 24)
Simple IRA - put max in this year already (10K)

I keep 6 months liquid in case of emergency and the rest is tied up in retirement/investment programs.

Have less than 1K CC debt and vehicles are paid for.

Yeah, I think I'll be okay.
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