U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-11-2016, 11:43 AM
 
Location: SoCal
13,252 posts, read 6,345,210 times
Reputation: 9873

Advertisements

For retirement, my motto has been, try to save as much as you can, try to minimize cost as much as you can even if you can afford it. This is why I never worried about whether it's 3% or 4% withdrawal rate. I spend less than that. I'll just withdraw what I need or what's required for RMDs. This is from my one year anniversary of being retired.
Reply With Quote Quick reply to this message

 
Old 12-11-2016, 11:49 AM
 
Location: NE Mississippi
13,689 posts, read 8,589,783 times
Reputation: 19915
Quote:
Originally Posted by DaveinMtAiry View Post
Not a fan of the tax deferred growth a 401 can give you? Interesting take. Your "plan" will offer no growth at all, to get to $1,000/month the poster will have to deposit his entire check, then sell stuff on eBay and maybe donate some plasma.
Well, Gee, Dave, can you think of any other way to get deferred growth? Because I can, and I used them. Perhaps your way is not the only way.
I actually retired without a 401k. But I'm used to people who are fans and who tout the 401k.

The reasons I didn't use one and don't like them are subtle and not easily understood by most people.

I am happily retired without a company pension and with money left over each month.

Last edited by Listener2307; 12-11-2016 at 11:59 AM..
Reply With Quote Quick reply to this message
 
Old 12-11-2016, 12:34 PM
Status: "Gaining Stability." (set 15 days ago)
 
5,685 posts, read 5,939,305 times
Reputation: 4432
Quote:
Originally Posted by Rox54 View Post
Goodlife36: "There are so many unknowns. All I can do is my best . . .

The next 22 years will be filled with many financial "game changers." Some will be personal; some will be a complete change of the financial & political arena as it is today.

Come what may, life below your means, save what you can, and find a happy balance between today & the future. Your posts indicate you will be successful in whatever choices you make. If a choice does go bad, pick yourself, dust off, & chalk it up to "not gona' make that mistake again." Good luck to you!
Thank you!
Reply With Quote Quick reply to this message
 
Old 12-11-2016, 03:26 PM
 
Location: Myrtle Creek, Oregon
12,278 posts, read 12,520,484 times
Reputation: 19441
Quote:
Originally Posted by DaveinMtAiry View Post
Not a fan of the tax deferred growth a 401 can give you? Interesting take. Your "plan" will offer no growth at all, to get to $1,000/month the poster will have to deposit his entire check, then sell stuff on eBay and maybe donate some plasma.
If the OP just has $1000/month income outside of SS he will be OK, but if he has another income stream a tax deferred account is a guaranteed massive loss in retirement. There are Roth 401k plans that may not look so impressive on the deposit end, but in the withdrawals you end up with a lot more money in your pocket.
Reply With Quote Quick reply to this message
 
Old 12-11-2016, 05:19 PM
 
Location: Central Massachusetts
4,800 posts, read 4,851,516 times
Reputation: 6379
Quote:
Originally Posted by Larry Caldwell View Post
If the OP just has $1000/month income outside of SS he will be OK, but if he has another income stream a tax deferred account is a guaranteed massive loss in retirement. There are Roth 401k plans that may not look so impressive on the deposit end, but in the withdrawals you end up with a lot more money in your pocket.
you are correct but as I read the rules only your contributions go to the Roth account. Any matching is put in traditional so it is kind of an offset.
Reply With Quote Quick reply to this message
 
Old 12-11-2016, 11:31 PM
 
Location: Wildside of Oahu
1,412 posts, read 2,785,050 times
Reputation: 2433
Quote:
Originally Posted by DaveinMtAiry View Post
Yes we are happy for you Perry. But I guess the thought is in a thread started by a poster who is unable to save $560/month I'm not sure what the purpose of posting that you are saving over $35,000/year other than to make yourself feel good, possibly at the OP's expense.
Reps. Why insert your ego into someone elses situation?
Reply With Quote Quick reply to this message
 
Old 12-12-2016, 06:16 AM
 
Location: Mount Airy, Maryland
10,467 posts, read 5,935,374 times
Reputation: 16170
Quote:
Originally Posted by goodlife36 View Post
I am essentially starting from scratch. I made some decisions that wiped me out financially. My primary goals are to save and pay off debt over the next two years. I do live significantly below my means. If I did not, I would not be able to save and pay off debt. Once that is done, I can purchase a condo and start putting money in a 401k.


My current rent is low but my payments will double when I buy a condo. It cannot be helped. That is the market and there is nothing I can do about it. I will be lucky if I can get a condo for that price.

Currently, I am responsible for paying all of my benefits. It sucks but what can I do. It is not easy to find a job today. I still feel somewhat lucky because I know people who are still unemployed and some who had to take a $20,000 pay cut. I have to make it work.

I made a projected budget for 2019 and I can only contribute $300 per month towards my 401k. The problem is health insurance. If my employer does not pay for it, I have to. I project it will cost about $500 per month. If my employer pays for it, I will most likely be able to contribute about $600 per month. I am hopeful but who knows. The jobs market really sucks for me.

I am hopeful about retirement. I went on the social security website to register. The dollar amount quoted is not too bad. My salary has been really low for the past three years. I anticipate it will go up dramatically because I am back to making what I did before my big mistake.

I also contacted my old employer about my pension. I feel so fortunate to have worked at such a good company that offered amazing benefits. It is the old fashion pension. I will get the money until I die which is so awesome. Employers don't offer that anymore. They stopped in 2007. I have my paperwork for that. Not bad.

I have decided to keep working once I reach retirement age. I really do not like being home. A part time job or a long term temp job will do just fine. Someone mentioned working in a library. That would be perfect.

The big variable is the 401k. I was hoping for $1000 per month but what can do?

I do not believe a million dollars is necessary for a comfortable retirement. My best friend is a senior. She is married and they doing okay. I do not believe they have a 401k. Many people are getting by with social security and working.

I did a projected budget and I think I will be okay. Paying off that mortgage will help immensely.

There are so many unknowns. All I can do is my best. This is my plan. Hopefully, I will catch a break. Life has been tough these past years but I am hopeful. Hence the optimism.

This is good to read and I agree with Perry that you don't need a million dollars to retire. The other good news is if you now earn a higher income those projected SS benefits are too low. Look closely at the statement. There is a line saying the projections are based on your current income continuing until you file as the figures are based on your last year of income reported If your income will be dramatically higher your future statements will reflect the assumption that the new higher income will be earned until retirement. This will give your benefit a bump.

Good luck and feel free to stop by for 401 investment advice,

Last edited by DaveinMtAiry; 12-12-2016 at 06:26 AM..
Reply With Quote Quick reply to this message
 
Old 12-12-2016, 02:02 PM
 
2,484 posts, read 864,856 times
Reputation: 1731
Quote:
Originally Posted by Listener2307 View Post

I am not a fan of 401(k)'s unless your employer has a very good plan.
Like many employers, mine will match 50% of what I contribute up to 6% of my pay. Can you find another investment that pays a guaranteed 50%?
Reply With Quote Quick reply to this message
 
Old 12-12-2016, 02:38 PM
 
Location: Mount Airy, Maryland
10,467 posts, read 5,935,374 times
Reputation: 16170
Quote:
Originally Posted by Listener2307 View Post
Well, Gee, Dave, can you think of any other way to get deferred growth? Because I can, and I used them. Perhaps your way is not the only way.
I actually retired without a 401k. But I'm used to people who are fans and who tout the 401k.

The reasons I didn't use one and don't like them are subtle and not easily understood by most people.

I am happily retired without a company pension and with money left over each month.
Well Gee Listener if you have another way for deferred growth you certainly didn't explain it. I was responding to your post where your instructions were to put all of the opening poster's post tax paycheck, then withdraw what you need. Your suggestion would yield less than 1% at current rates and of course the money market interest is taxable every year.

Me? I'm good with a diverse 401 (k) that is funded with pre-tax dollars (read a larger weekly deposit than post tax) and will be withdrawn after earning a conservative 6% and will be taxed at a future, lower tax rate.
Reply With Quote Quick reply to this message
 
Old 12-12-2016, 03:59 PM
 
Location: Central Massachusetts
4,800 posts, read 4,851,516 times
Reputation: 6379
Quote:
Originally Posted by DaveinMtAiry View Post
Totally agree. Save what you can and pay off your mortgage. It's all you can do, pay no attention to those saving $1,700 a month plus 35 grand.


Quote:
Originally Posted by Listener2307 View Post
Well, Gee, Dave, can you think of any other way to get deferred growth? Because I can, and I used them. Perhaps your way is not the only way.
I actually retired without a 401k. But I'm used to people who are fans and who tout the 401k.

The reasons I didn't use one and don't like them are subtle and not easily understood by most people.

I am happily retired without a company pension and with money left over each month.
The issue is a lot more people are getting access to 401k funds everyday. There is a good reason for them. They are a tool to recruit good people and keep them around. Even where my wife works (a plastics molding injection factory ie.. sweatshop) have access to a 401k and even get a match of 4% of wages. They have access to Roth as well as traditional and a relatively good variety of funds. They may not be to your level of an idea for investing but it is something. Even still as more than half of American workers have saved less than 10k it would seem that they are not taking advantage of the opportunity.

Quote:
Originally Posted by DaveinMtAiry View Post
Well Gee Listener if you have another way for deferred growth you certainly didn't explain it. I was responding to your post where your instructions were to put all of the opening poster's post tax paycheck, then withdraw what you need. Your suggestion would yield less than 1% at current rates and of course the money market interest is taxable every year.

Me? I'm good with a diverse 401 (k) that is funded with pre-tax dollars (read a larger weekly deposit than post tax) and will be withdrawn after earning a conservative 6% and will be taxed at a future, lower tax rate.
Some times we just have to keep explaining the reasons for saving to your best ability.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top