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View Poll Results: Your Employment-related Sources of Retirement Income
I have/will have 401K and/or pension plan income from my employer(s) 141 88.68%
No 401K/pension plan of my own but may receive benefits from my spouse's plan(s) 4 2.52%
Never had a 401K and/or pension plan and neither does/did my spouse 14 8.81%
Voters: 159. You may not vote on this poll

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Old 07-30-2019, 12:16 PM
 
Location: Tennessee
23,812 posts, read 17,734,769 times
Reputation: 27879

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Quote:
Originally Posted by BBCjunkie View Post
I've lived all my life on Long Island which is generally considered (on the whole) to be middle/upper-middle class and beyond ... sometimes waaay beyond, LOL. It's one of the highest COL areas in the country and while I do see a few people of my acquaintance doing exactly what you describe by heading toward places like Alabama and Tennessee in retirement, those friends are all in the middle rather than upper middle class economic segment. The "upper middle" people I know plan to eventually migrate to places like the Carolinas or Florida, or they have decided to remain here. Often the overriding factor for those who chose to stay is family. In my case that's not true although I'm sure some people I know assume so; it's easier to let them think that than to go into a lengthy explanation of why I'd rather have less money here than more money elsewhere, LOL
A lot of those folks could bail out here with basically nothing saved up if they had a paid for house. Sell the paid for up north in cash, move down somewhere like here, pay $150k-$200k for a typical local home, pocket the remaining few hundred thousand. It's not a ton, but would be survivable somewhere like this with careful financial management. The person who has nothing here won't have much equity and won't have anywhere cheaper to bail out to.

I've been trying to line something up in Raleigh for most of the past year. It's been my favorite "livable" city of the places I've been lately. It's a generally middle to upper middle class place, with far more opportunity than here in several areas over the long haul, without the expenses of a Boston or NYC.

Quote:
Originally Posted by NewbieHere View Post
I moved to Boston when I first graduated from college with zero money. Of course it’s easier said then done, it’s also easier to complain then do something about it. For the records, I made $24k in 1982, I paid $450 a month for a condo in Andover, a very nice area.
I had no choice, at least I didn’t think I had any choice, either that or staying in SoCal, where both of my brothers were under employed for years. Yes, I could say I’m always a risk taker. Maybe you are not that type.
Those are basically the low end wage/COL ratios here today. That $12/hr guy can find a dumpy apartment in the city for that much. It's not a nice lifestyle, but it's doable.

Today, that entry level person might make $40k, but the apartment's $1500/month. The situation is very difficult for newcomers.
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Old 07-30-2019, 12:28 PM
 
Location: ☀️ SWFL ⛱ 🌴
2,458 posts, read 1,691,680 times
Reputation: 8822
Quote:
Originally Posted by NewbieHere View Post
I moved to Boston when I first graduated from college with zero money. Of course it’s easier said then done, it’s also easier to complain then do something about it. For the records, I made $24k in 1982, I paid $450 a month for a condo in Andover, a very nice area.
I had no choice, at least I didn’t think I had any choice, either that or staying in SoCal, where both of my brothers were under employed for years. Yes, I could say I’m always a risk taker. Maybe you are not that type.
It is a leap of faith many times, and it is not for the faint of heart. We moved from a LCOL in the Midwest to a HCOL area north of NYC. Looking back, it was the best thing we could have done for ourselves and our careers. During the early years though, in the midst of hard decisions, a budget with no wiggle room, and without any nearby family as a safety net, we weren’t so sure it was such a great idea. I’m not so sure it’s being a risk taker as much as being positive/ having faith it will all work out.

Last edited by jean_ji; 07-30-2019 at 12:37 PM..
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Old 07-30-2019, 12:45 PM
 
Location: SoCal
13,490 posts, read 6,448,935 times
Reputation: 10088
Quote:
Originally Posted by jean_ji View Post
It is a leap of faith many times, and it is not for the faint of heart. We moved from a LCOL in the Midwest to a HCOL area north of NYC. Looking back, it was the best thing we could have done for ourselves and our careers. During the early years though, in the midst of hard decisions, a budget with no wiggle room, and without any nearby family as a safety net, we werenít so sure it was such a great idea. Iím not so sure itís being a risk taker as much as being positive/ having faith it will all work out.
It was for sure an adventure for me. There were days I could say I was living from paycheck to paycheck.
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Old 07-30-2019, 01:17 PM
 
664 posts, read 328,043 times
Reputation: 1974
Curious as why the 401K and Pension incomes were lumped together? To me they are two very different savings vehicles; especially as many jobs did away with pensions when 401Ks came out.
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Old 07-30-2019, 01:19 PM
 
500 posts, read 953,566 times
Reputation: 638
Quote:
Originally Posted by Dreamingisfree View Post
We are not retired yet but my wife and I are both Federal employees, we have their version of a 401K (TSP) and will get a pension. I consider us very fortunate.
You should also be eligible for SS
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Old 07-30-2019, 01:27 PM
 
1,723 posts, read 604,869 times
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Quote:
Originally Posted by BabyJuly View Post
Curious as why the 401K and Pension incomes were lumped together? To me they are two very different savings vehicles; especially as many jobs did away with pensions when 401Ks came out.

Because as I understand it (unless I'm wrong?) both of those originate with one's employer directly. In other words one has to work for a company that offers (or offered) such a thing. That's why I described them as being "employer dependent".

IRAs, on the other hand, are not employer dependent in the same sense. An independent contractor (1099'er) can fund an IRA if they want to. So can someone who doesn't work for a company or entity that offers any kind of a retirement plan. Again, perhaps I am not understanding the situation properly but I have always thought of 401Ks, Pensions, and all similar vehicles as being "Employer Centric"; I consider IRAs to be "Worker Centric" because the only person who cannot contribute to an IRA is someone who is not working at all. Who you work(ed) for is irrelevant when it comes to IRAs. But when it comes to 401Ks, etc, who you work(ed) for is the determining factor.
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Old 07-30-2019, 04:03 PM
 
26,142 posts, read 33,144,896 times
Reputation: 32508
Quote:
Originally Posted by BBCjunkie View Post
Because as I understand it (unless I'm wrong?) both of those originate with one's employer directly. In other words one has to work for a company that offers (or offered) such a thing. That's why I described them as being "employer dependent".

IRAs, on the other hand, are not employer dependent in the same sense. An independent contractor (1099'er) can fund an IRA if they want to. So can someone who doesn't work for a company or entity that offers any kind of a retirement plan. Again, perhaps I am not understanding the situation properly but I have always thought of 401Ks, Pensions, and all similar vehicles as being "Employer Centric"; I consider IRAs to be "Worker Centric" because the only person who cannot contribute to an IRA is someone who is not working at all. Who you work(ed) for is irrelevant when it comes to IRAs. But when it comes to 401Ks, etc, who you work(ed) for is the determining factor.
Would have been interesting to added other options to the poll.

I have a couple of IRA accounts from previous employer 401k rollovers.
With my current employer (from where I will retire) I have a deferred compensation plan (457b) - no employer contributions - and also a pension plan that I contribute to.
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Old 07-30-2019, 04:17 PM
 
967 posts, read 209,718 times
Reputation: 1503
Quote:
Originally Posted by BabyJuly View Post
Curious as why the 401K and Pension incomes were lumped together? To me they are two very different savings vehicles; especially as many jobs did away with pensions when 401Ks came out.

I have both. When my company started the 401K plan they still had pensions.
It wasn't until years later that they phased it out.

There's still a good amount of workers/retired that have both a 401K and a pension.


How many American workers participate in workplace retirement plans? | Pension Rights Center
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Old 07-30-2019, 05:17 PM
 
29,910 posts, read 34,976,474 times
Reputation: 11812
Quote:
Originally Posted by TMSRetired View Post
I have both. When my company started the 401K plan they still had pensions.
It wasn't until years later that they phased it out.

There's still a good amount of workers/retired that have both a 401K and a pension.


How many American workers participate in workplace retirement plans? | Pension Rights Center
At least in the public sector the option to have both is the norm. That is the non profit 403B equivalent to the for profit company 401K
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Old 07-30-2019, 06:33 PM
 
Location: Forests of Maine
30,754 posts, read 49,594,922 times
Reputation: 19180
I have a pension from the US Navy. I have paid into SS since I was a teenager, that I plan to begin tapping in a few more years.

My Dw has a tiny pension from the Federal agency, and she also has a SS policy.
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