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Wife is 37 she still works. she also has a 401.She will also collect my pension when she retires.
But the REAL question is....did she EARN it?! ..just playin' with ya jeff -
I couldn't resist because in my book pensions ARE earned. Companies don't just do it out of the goodness of their hearts - without the promise of a pension they'd have to pay more in order to keep employees around. If you're afraid the company won't be around (or you don't plan on sticking around long enough to be vested) then you keep looking for another job.
Like Suze Orman advice to NEVER put any more in 401k than amount needed to get company match because these are the lowest performing funds possible for 401k, only exception is company stock.
At age 29, I had $45k earning really modest pay. Developed health problems and let go from my job without unemployment pay or medical leave so all the money is gone, long gone. Needed the retirement money to survive earlier than expected...Lots of the local women have suffered similar problems with health or local sex harassment/hostile workplace scams and screwed out of retirement moneys early. Really have nothing to show for staying here.
Now I'm 41, and $2k in IRA, emergency fund, debt paid down but still no work after getting screwed by employer earlier this year. Having trouble finding counsel to advise and having to leave with restraining order some I'm left alone to file a discrimination complaint and try to get my small business started again...Only reason I'm okay financially was paid for broken back injury from 2 years ago about time I found out this employer was unethical and I was likely in for a hard time for a while. Did not need this but ...**** just makes you stronger.
Like Suze Orman advice to NEVER put any more in 401k than amount needed to get company match because these are the lowest performing funds possible for 401k, only exception is company stock.
Doesn't this really depend on your particular 401k? I have a Russel 1k index fund with a 0.03% expense ratio. That will track the S&P as well as the next 500 largest companies. My wife has Vanguard index fund options in her 401k.
Perhaps that is accurate if you are choosing between a 401k and an IRA/Roth, but if you have maxed out those then a 401k is a great option to continue to defer taxes assuming you have attractive investment options.
30 years old. About $37K in retirement. Husband is also 30 years old and has $7K.
I started young with my first employer and contributed to the match thanks to my dad telling me I had to do it. But then in 2013 I lost my job and remained unemployed for a year while we were transitioning to move (my husband is military). Started a new job in 2014, but wasn't eligibile for retirement benefits. Then changed jobs in 2015 for better opportunity, better pay, and better hours, but now my new job has zero retirement benefits. So I'm going on 3 years of no 401K contributions.
I have a Roth IRA that I contribute a small amount to, but it is definitely NOT enough. We are paying off debt right now, so once it is all paid off, I plan to maximize my Roth contributions and increase my husband's TSP contributions. But that is likely another 12-16 months away.
I feel incredibly behind.
Last edited by FinanceBabe; 11-16-2015 at 10:47 AM..
I'm 39. Roughly $100K in my IRAs and 401K accounts. I need to rebalance, but honestly, I look at it maybe once every 2 years. I invested in index funds wherever I could. It's done well, i think.
Like Suze Orman advice to NEVER put any more in 401k than amount needed to get company match because these are the lowest performing funds possible for 401k, only exception is company stock.
At age 29, I had $45k earning really modest pay. Developed health problems and let go from my job without unemployment pay or medical leave so all the money is gone, long gone. Needed the retirement money to survive earlier than expected...Lots of the local women have suffered similar problems with health or local sex harassment/hostile workplace scams and screwed out of retirement moneys early. Really have nothing to show for staying here.
Now I'm 41, and $2k in IRA, emergency fund, debt paid down but still no work after getting screwed by employer earlier this year. Having trouble finding counsel to advise and having to leave with restraining order some I'm left alone to file a discrimination complaint and try to get my small business started again...Only reason I'm okay financially was paid for broken back injury from 2 years ago about time I found out this employer was unethical and I was likely in for a hard time for a while. Did not need this but ...**** just makes you stronger.
Suze Ormond often gives terrifyingly bad advice, alongside nuggets of useful insight. Some 401k programs provide excellent options beyond the tax deferment and the matching. I think all of my retirement accounts offer a full range of low-priced index funds.
As for company stock, you should diversify away from the company that employs you. If your company goes under, not only do you lose your job, but your stock tanks in value. I worked for a company that used to give you stock alongside your annual bonus. When it tanked, those shares were worth precisely bupkis. The only reason I didn't sell it was because I hadn't vested.
Suze Ormond often gives terrifyingly bad advice, alongside nuggets of useful insight. Some 401k programs provide excellent options beyond the tax deferment and the matching. I think all of my retirement accounts offer a full range of low-priced index funds.
As for company stock, you should diversify away from the company that employs you. If your company goes under, not only do you lose your job, but your stock tanks in value. I worked for a company that used to give you stock alongside your annual bonus. When it tanked, those shares were worth precisely bupkis. The only reason I didn't sell it was because I hadn't vested.
Yup I get this right now. My first shares vest this February. I will be selling immediately and buying something else in my Roth. The only company stock I buy is with the 15% discount I get. Even then, when it runs up I sell.
My kid is 25 and has about $40k in Roth and SEP IRA.
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