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California Public Employees Retirement System... I've been a public employee for the last 4 years, and have a small amount invested already.
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What is considered very little?
Maybe $5000, give or take? That's only from a few years of contributions, and not always with full-time work... so it should grow a lot more before retirement, which is still many years away.
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What is a guaranteed nest egg?
Inheritance and trust funds... not going to share specifics, however, as I'm already saying more than I typically would in mixed company.
CalPERS is California State Employee pension. I think they pay into it, but not very much, as it is a pension and not a 401K... but she's guaranteed when she retires to get (correct me if I am wrong) 80% of her last years salary for the rest of her life. And at least from what I hear, they often pump up the last year as much as they can for their retirement.
Not sure about that last part, but you're correct about the rest... my mother was a public librarian (like myself) for 20+ years, and when she turns 65 in 2 years she'll receive 80% of her former salary for life. She's actually working for a private institution now, but that doesn't affect her public pension or when it begins.
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It's not uncommon for people that have a pension to not save tons of cash because they have that mindset that the pension is there forever... but she's also right about there being a danger in that mindset. Public employee pensions just could go the way of the rest of the private pensions.... extinct.
I'm not depending on my pension, and in fact I didn't even understand it until recently... I am fairly naive about finances, for reasons mostly related to my upbringing. It's a nice thing to have, of course, but it's definitely not my only "plan for the future."
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There's a huge backlash on public pensions out here. There are tons of cities throughout California whose pension pay ins are larger than the rest of their city budgets. It's strangling our cities. There have to be cut backs. The police have given back a little -- they are paying in more of their own salary... but it's still a drop in the bucket.
Most of the regular Joes who perform public jobs get a nice pension, but it's not exactly a fortune. I think my mother will be getting around $35K/year, after working in the public libraries for over 20 years (and in urban public schools prior to that). We're also talking about a librarian, which is a highly skilled & post-graduate education profession - so it's not like she "lucked into" a good job. I don't know enough to comment further, but I suspect it's somewhat hyped up in the media.
Not everyone should be invested in the markets, they may have a 401k/IRA, but many people don't know what they are invested in, but you know that already.
Like someone stated earlier, they have a 401k but it is invested in their business or themselves, where they actually run or own the company, that's not listed on the market. That's when I want to have one. I should have stated down the road that I'd have opened 401k/IRA accounts, but just not right now. I'm just in cash right now. I'm not in debt or broke, this is where I want to be, I'm not less or better than anyone either.
Drive on any highway in America and you will see "for sale" signs everywhere, on homes, lands, businesses, cars, trucks, motorcycles, boats, et cetera. I bought another car, and a truck recently, paid cash. I have waited patiently, now it's my turn to buy at good prices. People need cash.
My actions are my consequences, good or bad. I hope you can see from point of view. Stocks/Bonds aren't the only type of investment that pay dividends. There isn't only one road to success. If you have a define contribution plan or define benefits plan, good for you. Good luck to you all.
I'm not really saving for retirement. I save, but my game plan is to buy many rental property, invest in the stock market, and what not, no 401k or IRA, I understand them. Plan on just living my life. I have plenty of tricks up my sleeves to make money when I get older, don't really plan on retiring either.
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Originally Posted by Texas User
So why not invest in 401K and IRA's since that is the Stock market? They have tax savings.
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Originally Posted by kenvbtx
It's about risk. The market is volatile these days. I'm not in the mood to be a trader.
Not everyone should be invested in the markets,....
Huh???
You stated that you invest in the stock market, but don't have a 401(k) or IRA. Texas User then asked why you don't invest in the stock market within the confines of a 401(k) or IRA to gain tax advantages since you already stated that you invest in the stock market, and you then replied that the market is volatile and not everyone should be invested in the markets.
You stated that you invest in the stock market, but don't have a 401(k) or IRA. Texas User then asked why you don't invest in the stock market within the confines of a 401(k) or IRA to gain tax advantages since you already stated that you invest in the stock market, and you then replied that the market is volatile and not everyone should be invested in the markets.
Once again....huh??
I believe I wrote "not right now", "game plan", "in cash".
Maybe you should read my last post a few more times.
Anybody else have no serious plans to save for retirement? I can't think of a reason why I'd actually want to retire and therefore don't save for it in any sort of serious way.
Your attitude is very nieve. Did you ever think you may not be desirable to employees at 70 years old?
What if your health in old age prevents you from working?
You talk about how if yoru disabled you'll live off disability. DIsability with no other income is a pretty sad life.
Keep up this attitude and you coudl get lucky and have no problems but you could also end up eating cat food in a state subsidized apt in a bad neighborhood.
Your attitude is very nieve. Did you ever think you may not be desirable to employees at 70 years old?
I'm assuming you mean employers and as I've mentioned previously, I'm not considered about employers as I much prefer self-employment.
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Originally Posted by rfr69
You talk about how if yoru disabled you'll live off disability. DIsability with no other income is a pretty sad life.
Not really, I can simply purchase a home cash in a low-cost area and the disability checks would be sufficient to pay for everything else. Although this wouldn't be my preference, I can think of plenty of things to keep myself busy and happy in such a scenario.
Anybody else have no serious plans to save for retirement? I can't think of a reason why I'd actually want to retire and therefore don't save for it in any sort of serious way.
I'm assuming you mean employers and as I've mentioned previously, I'm not considered about employers as I much prefer self-employment.
Not really, I can simply purchase a home cash in a low-cost area and the disability checks would be sufficient to pay for everything else. Although this wouldn't be my preference, I can think of plenty of things to keep myself busy and happy in such a scenario.
ha ha ha ha ha..... more power to ya living that life...
ha ha ha ha ha..... more power to ya living that life...
"That life" is a worse case scenario and its very unlikely to occur, but if it does, I'm okay with that. Its much more likely that I'm dirty rich by the time I'm 60.
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It's a nice thing to have, of course, but it's definitely not my only "plan for the future."
