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Topic: Pension Plans...?< Next Oldest | Next Newest >
 Post Number: 1
rangersven Search for posts by this member.

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PostIcon Posted on: Jun. 17 2013, 1:59 pm  Skip to the next post in this topic. Ignore posts   QUOTE

Reading several money-related articles, it seems less and less companies are offering traditional pension plans.  In-lieu of pensions the 401k plan is the new norm.  According to many of these articles future retirement looks bleak due to these offerings.

Do you still have a traditional pension?  And if so what do you do?  If not, are you able to save enough for retirement in your 401k plan?  I know many high-earners who are able to save a lot;however, those who have families and goes who make less than stellar salaries seem to have a hard time saving enough for retirement.

Happy Trails,

RS


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PostIcon Posted on: Jun. 17 2013, 2:12 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

I have a state plan through the NC retirement system.  At my current salary I'm looking to draw $500 per month less than what I am earning now.  The catch, I won't be paying nearly $300 in hospitalization for the kids and I won't be contributing $200 per month to my retirement plan so basically my salary will stay the same once I retire.  Add to the fact I won't have to drive 30 miles rounds trip daily to get to work, that's going to save hundreds of dollars in gas per year.

The only thing that scares me is complete economic collapse thanks to the current administration.  The sad part is, this will happen while the republicans are in control.  It was designed to fail that way. :(


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PostIcon Posted on: Jun. 17 2013, 2:14 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Traditional ("defined benefit") pensions have been on the wane since the '90s!

Lucky for me, I had worked 11 years for an insurance corporation and thus have claim to a traditional company pension.  My retirement nest egg is a three-legged beast:  pension, ss, and my own tax-deferred investments.

For the majority now who don't have a traditional company pension -- there is ss (hopefully) -- and your own savings/investments.  But it's still quite do-able.  Here it is, in order of importance:

1.  Live within your means.

2.  Set up a "rainy day" fund -- bank account -- good for 3-6 months' worth of living expenses.   Less if your pay is stable.  More if your pay fluctuates wildly.

3.  Contribute as much as you can to your company 401K plan (or equivalent) -- to take advantage of tax benefits and esp. any company matching.

4. Save up another stash that's in between emergency (#2) and retirement (#3).  This stash is for everything from daily needs to vacation, car, college fund, etc., etc.  If you don't have the money, don't buy the stuff unless it truly is a necessity.  Again, aim to live within your means.

5.  Contribute to IRA's /  Roth IRA'S (or equivalent) -- if you still have money to save -- such as bonuses or future pay raises.

Everyone's financial situation is different -- but take a good hard look at your finances -- and try to squeeze some savings out.  Your future depends on it.


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PostIcon Posted on: Jun. 17 2013, 2:21 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Lottery tickets

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PostIcon Posted on: Jun. 17 2013, 2:38 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

No such thing for most college educated folks of my generation (entered the workforce late 90's)  I've had a 401(k) pretty much since I graduated college and it's the only thing I'm actually relying on to have in retirement.

It's an interesting phenomenon I've watched with my parents and friends parents.  Those who had white collar parents had nice cars, houses and clothes growing up while the blue collar families struggled to get by.  Fast forward to our parents approaching retirement and those blue collar folks (including my mom) are retiring with a nice pension, while the white collar folks (a lot of my friends' parents) lost everything in the market crash and are nowhere near being retired.


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PostIcon Posted on: Jun. 17 2013, 3:29 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

WalMart Host.

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PostIcon Posted on: Jun. 17 2013, 3:42 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

I learned a very long time ago that nobody was going to do it for me and did it myself. I have a 401k and IRA's but do not put into anything right now as I'm contemplating retirement of some sort now and don't want to have to wait another 12.5 years to touch what I have saved.
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PostIcon Posted on: Jun. 17 2013, 3:43 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Pension?  HAHAHAHAHAHAHA!
Retirement?  OHHOHOHOHOHOHO!
I will be given a shovel and a nice 6X2 plot of ground when I can no longer work.


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PostIcon Posted on: Jun. 17 2013, 4:02 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Welcome to McDonalds!!!

Would you like to Supersize that order?


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PostIcon Posted on: Jun. 17 2013, 4:17 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

When I announced my retirement to a client she offered me the job as the elevator man in the building she manages, in case I got bored.  I must have given her a blank stare while I thought about which part to respond to first.  She said the current operator was the President of the bank in her building before he retired.  Some people actually like that job, or social event.  Apparently she was serious.  I haven't been back in that building.
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PostIcon Posted on: Jun. 18 2013, 6:40 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

My company still has a pension, with $2,000,000,000 in the pension account, so it should be there for me. 401k is there. Not really counting on anything from ss.

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PostIcon Posted on: Jun. 18 2013, 9:15 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Yup I have a pension!  I retired in 2011 and so far so good.

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PostIcon Posted on: Jun. 18 2013, 9:30 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

As one of those Blue Collar people, I had a nice retirement acct., but I never planned on just that.  I saved my own $$ in an IRA, and aggressively put $ into it.  Because there were 2 wage earners in my family, we tried to live on one salary and save the other.  Didn't always work out, but that was the plan.  I now have a nice nest egg that I refer to as my Passport Acct, which will allow for a nice expensive vacation once a year, or several less expensive ones.  All of my trips within the US are paid for out of my monthly income.

My current pay is only about 80% of my working pay, but it is more than enough for my living style.  I have found the most difficult mental process about retirement is shifting from the Saving mode to the Spending mode.  I spent 30 years saving each month, and now I do not like seeing those balances diminish even a little.  I am taking about 4% withdrawal from them, so they are continuing to grow with their interest and gains, but I feel like I should be saving still.  


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PostIcon Posted on: Jun. 18 2013, 9:40 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

I have dutifully saved into a 401(k) for many a year, and minimized my debt. I think I will be able to retire, but as a Gen X'er, I don't think retirement will be as easy as generations before. Especially since so many aren't saving. I think the Millennium generation will look at retirement as a quaint notion that existed for ~75 years.

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PostIcon Posted on: Jun. 18 2013, 5:30 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Retirement?  What's that?  I had/have a pension that was frozen when our company was taken over.  I now have a frozen retirement benefit that will hopefully buy a few crumbs at the grocery store on occasion.  I do have a 401K, and I have dumped as much money as I can into it.  But being in a marriage where one of the people could not exercise spending restraint, hurt more than I can fathom, and then paying her money from that when we divorced, also hurt a lot.  I am hopeful that A.) I can stay employed for the next 20 years, and B.) I can afford to retire then.
Pensions are pretty much a thing of the past I believe.  And I doubt that public companies will continue to carry out that fanciful notion much longer.
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PostIcon Posted on: Jun. 18 2013, 6:34 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

The reason have been working in hi tech the last few years is to squirrel away money into my bank account that had tanked after the economy collapsed in 2008.  Never owned real estate, never any debts, no dependents, peon assets.   Piddly remaining value in stocks though at one point had multi 6 figures in stocks that sunk underwater. Easy come easy go.  Few private companies during my life much less these days have had retirement plans except for executive management.  Many of the public employee retirement plans here in California have resulted in bleeding or insolvent governments.

Have occasionally had IRAs and 401K accounts but never put much in and a few years ago sucked what was there dry.  I qualified for max SS long ago so can count on at least $2200 a month for the rest of my life which is a lot more than many of my peers.  For someone cheap and frugal that won't be difficult though won't been taking any fancy vacations,


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PostIcon Posted on: Jun. 18 2013, 9:32 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE


(ol-zeke @ Jun. 18 2013, 6:30 am)
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My current pay is only about 80% of my working pay, but it is more than enough for my living style.  I have found the most difficult mental process about retirement is shifting from the Saving mode to the Spending mode.  I spent 30 years saving each month, and now I do not like seeing those balances diminish even a little.  I am taking about 4% withdrawal from them, so they are continuing to grow with their interest and gains, but I feel like I should be saving still.  

That's an interesting point, Zeke.  I could see us having that problem, after two lifetimes of being very frugal.  For that matter, we see the interesting struggle in my Father-in-law.  He is quite able to do the big expenditures, trips, etc.  But he can't bring himself to buy decent coffee, real vanilla, premium ice cream. . .  I actually do better the other way.  I've learned not to be totally stingy on the day-to-day stuff (mostly food; clothes I'd as soon not have to ever buy), but am very reluctant to spend big on vacations, etc.  And I still get a total thrill out of a truly successful dumpster-diving expedition.

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PostIcon Posted on: Jun. 19 2013, 8:05 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

If you are talking about non-contributory pension funds, aka they are funded 100% by the company, those have been a thing of the past, for most companies, for decades.  That is nothing new.  There are still a few around, but only major companies.  And often they are only funding for those employees who have been with the company for many years.  New employees are not even told about the old benefit.

I'm sure that someone will be able to quote a small company that still funds a pension plan for their employees, but it is certainly not the norm.

I am fortunate enough to have some money in one pension plan with a company I was with for 15 years.


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PostIcon Posted on: Jun. 19 2013, 8:18 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Pensions?  I'm a millennial with my own engineering r&d firm.  Nobody's even asked about a pension.  Maybe I'm just too young to appreciate pensions but I'd rather receive a higher salary and invest it myself.
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PostIcon Posted on: Jun. 19 2013, 9:39 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Been contributing to 401k for years now. It got cut in half back in 2009 but then I bumped it up and started investing in stocks on my own. Just about to put a condo I've lived in for ten years as a rental. Hopefully can pay it off and use that money to invest/save.
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PostIcon Posted on: Jun. 19 2013, 9:58 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

1/3 of my retirement is pension, 1/3 is TSP (401K), and 1/3 is social security

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PostIcon Posted on: Jun. 19 2013, 11:50 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Last night just watched a new Frontline special:

The Retirement Gamble

http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/

Came down hard on the way Wall Street with their Mutual Funds came in to dominate the 401K options that though originally well intentioned have over the years on average been of questionable benefit to people mainly due to the 2001 and 2008 crashes while managing to worm a long list of obscurre and hidden fees into the process that in the end has only made the funds and their managers rich.  In the end a lot of people nearing retirement sucked into the funds gamble have much less to work with now than they originally planned and put so much into.  Also discussed how companies and corps bailed out of pension plans decades ago so what is left is mainly government public employee and union plans.

Recall back when 401K's first came out, I rejected the option of selecting higher returns backed by mutual funds and instead went with lower returns from CDs.

The last few years I've been receiving piles of junk mail  about retirement planning, supplemental medical plans and immediately toss most.   What I have noted is that such scare marketing tends to overstate how much people will actually need for retirement as though they are preaching to people that have been living a fat lifestyle, expect to live in one of those expensive retirement communities, travel the world in class, and have lots of medical bills.   Yikes!   In other words lifestyles that have always been alien to my sense of worth and interest.


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PostIcon Posted on: Jun. 19 2013, 1:15 pm Skip to the previous post in this topic.  Ignore posts   QUOTE

Be careful when talking to Deborah about this.... she has "done the numbers!"

I have a small pension with my company.  I used to contribute to a 403B (non-profit's 401K), the company did not match or contribute to that.  About a year and a half ago, I opened a Roth IRA and am currently moving money from my 403B into that Roth.  I will have to pay taxes on the money I move out of my 403B, but,I swear the way this country is going, I'd rather pay the taxes now, than whatever huge amount they will be later, even in my retirement.  I have some money in investments, and I'm working on building my money up in an emergency savings account.  It's been a while since I had a bit of extra money, ( been supporting my daughter and grandkids) so it feels good to be putting money aisde again.

Of course, after having the detached retina, those bills are now coming in in masses!  Yikes!


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