Three-legged stool in retirement

[IntoMyDream]

It is hard not to think about the additional catch-up contributions of $5,500 for those age 50 and older to 401K. As for me, I'm reluctant to contribute THAT extra money to my 401K. Why? Because I feel like I should enjoy some of the money now rather than later. I have been contributing the maximun contribution limits for several years now. Is it wrong to think this way? No one knows what the future holds for us. If I can live on half of my income now, then I think I will be OK in retirement. Based on what I think I might get from pension amd social security, this two-legged stool should cover my expenses in retirement. Personal savings and 401K should be an extra for my other dreams Whatever that is.

Anyway, I always feel like "spend some and save some" is a key to happy living.

[TuborgP]

Originally Posted by Robyn55

Perhaps you know - but for the sake of others who might not - that 7.2% includes both an interest payment and a return of your principal (i.e., your own money). So it's not like buying a 7.2% CD for 10 years - getting 7.2% in interest a year - and getting all your principal back in 10 years.

Do you know what your actual return is (the part that's not a return of principal)? And what is the death benefit? How is it computed? Robyn

The annuity sales folks aren't yelling that out at the top of their lungs.

[TuborgP]

403(b)wise . Wise Information for Participants . Get Wise

A great site for many who are and aren't public employees. They are on our side.