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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) 79 86.81%
No 401K/pension plan of my own but may receive benefits from my spouse's plan(s) 1 1.10%
Never had a 401K and/or pension plan and neither does/did my spouse 11 12.09%
Voters: 91. You may not vote on this poll

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Old Yesterday, 03:52 PM
 
1,712 posts, read 597,472 times
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Quote:
Originally Posted by Tallysmom View Post
We had 401k’s that were AWFUL! And high fees to boot.

As soon as we became self employed we transferred the 401ks into rollover IRAs and we opened a SEP IRA, and I managed our retirement funds.

So — I didn’t have a choice to pick.
Sorry about that... being completely unfamiliar with 401Ks (other than that they are offered by employers, as opposed to an IRA which the worker funds themselves) I didn't even realize that they could be converted into an IRA at a later date. I just assumed "once a 401/pension, always a 401/pension"... My bad.

I also confess that I was totally unaware of the other "numbered" retirement vehicles such as TSP, FSR, 403s, 457s and whatnot but I guess they all fall under the "offered/provided by employer" umbrella.

Tallysmom, I would say that because the money in your current IRAs originally was from your employers, the best fit would be the first one (plan from employer) because that was where all or most (?) of that money originated.
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Old Yesterday, 03:55 PM
 
1,712 posts, read 597,472 times
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Quote:
Originally Posted by SoCal_Native View Post
I'm surprised it's that high. Of all Americans, how many are working? Not kids in school. Not a lot of stay at home moms.
Of those working, how many have a 401(k)? Not government employees. Not independent contractors.

Ah, that is true. Although government employees will get a government pension rather than a 401K so they will have a comparable (or possibly better? I don't know anyone who worked/works for the government) revenue stream to a 401K.
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Old Yesterday, 03:55 PM
 
376 posts, read 63,371 times
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I'll bet a lot of people don't realize that a non income earning spouse can have a Roth IRA funded by the working spouse AND you can fund a Roth IRA AND a 401(k). So even though I have a 401(k) we also contribute to my Roth and my non income wife's Roth.
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Old Yesterday, 04:00 PM
 
Location: NC Piedmont
3,950 posts, read 2,895,869 times
Reputation: 6347
Quote:
Originally Posted by BBCjunkie View Post
Sorry about that... being completely unfamiliar with 401Ks (other than that they are offered by employers, as opposed to an IRA which the worker funds themselves) I didn't even realize that they could be converted into an IRA at a later date. I just assumed "once a 401/pension, always a 401/pension"... My bad.

I also confess that I was totally unaware of the other "numbered" retirement vehicles such as TSP, FSR, 403s, 457s and whatnot but I guess they all fall under the "offered/provided by employer" umbrella.

Tallysmom, I would say that because the money in your current IRAs originally was from your employers, the best fit would be the first one (plan from employer) because that was where all or most (?) of that money originated.
I think your intent is well understood. I have 401k money to retire with and that is still what it is even if it isn't all in a 401k anymore. that was the retirement savings vehicle.
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Old Yesterday, 04:02 PM
 
2 posts, read 144 times
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Default Pension with403(b)

The job I have now we had a pension. In 2012 a pension representative recommended I add to the pension with a 403(b) tax differed account. I began to add that, and I am glad I did. I never used to think about retirement but I sure do now. In 2017 the company did away with the pension and went with a 401K. Older employees were able to stay in the pension if they wished and I did. I am grateful for the pension I have, and I feel I just made it under the wire.
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Old Yesterday, 04:10 PM
 
1,712 posts, read 597,472 times
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Quote:
Originally Posted by Serious Conversation View Post
The people with no sort of investments at all and zero/negligible savings will basically have to cobble together what they can from SS, any other government benefits they're eligible for, some work, and private charity.

Are you counting non-investment-vehicle IRA accounts (such as Certificates of Deposit) as "savings" though?

If yes, then I agree with you.

But if not, then people with no investments could have at least something. For example, the first year IRAs were available was 1974. Take a hypothetical 21 year old that year who put in the maximum allowable contribution every year until retiring this year but used IRA CDs only. They'd contribute:


8 years (1974-1981) at $1500 = $12,000
20 years at $2000 = $40,000
3 years at $3500 (using the 50+ catch-up) = $10,500
1 year at $4500
2 years at $5000 = $10,000
5 years at $6000 = $30,000
6 years at $6500 = $39,000
1 year at $7000


That would be a total of $153,000 in yearly contributions without factoring in any interest rates of the CDs that this money was in during the 46 years this person worked.... which is an exercise way beyond my limited mathematical abilities, LOL. I would think, especially since a chunk of those years were ones in which banks were paying interest in the double digit ranges, the resulting RMDs might be considered acceptable.... though maybe not on this forum, LOL
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Old Yesterday, 04:18 PM
 
Location: Denver CO
21,242 posts, read 11,879,583 times
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I have a 401k, a 403b (same thing but for a not for profit employer) and a smallish pension (will be about 600 per month), along with SS.
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Old Yesterday, 04:42 PM
 
Location: Florida -
8,780 posts, read 10,888,867 times
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My wife received a sizeable, lifetime pension (with a nice annual COLA) - along with SS - and a decent-size 403B. This (and paying-off our condo (which has increased 50%+ in value), enabled us to supplement our income with my SS ... and then roll my entire 401K into self-directed IRA investment stocks and an annuity.

After 10-years, we've yet to touch the 401K, but, just activated the annuity to offset inflation ... and be able to significantly help with grandkid's college. Although we maxed-out her lifetime pension, we backed it up with a sizeable 20-year term-life policy. We also carry LTC insurance to offset an unexpected or catastrophic health care issue.

We've been truly blessed in every way, including financially. However, nothing 'just happened.' It took serious planning along with financial discipline and living within our means, both during our careers -- and now in retirement. (BTW, we never made a huge amount of money, but, always faithfully tithed and gave. You can't out-give God!).
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Old Yesterday, 05:19 PM
 
6,745 posts, read 3,791,154 times
Reputation: 13896
I wouldn't group 401k and pension together, since they are different. A 401k is not JUST from the employer; the employer contributes SOMETHING to it, but it is a joint employer-employee contribution investment retirement account.

A pension is 100% from the employer. It also isn't protected by law to the same extent as a 401k.

I had a 401k that I and my employer contributed to. I had a Roth IRA that only I contributed to. I get Social Security.

If a person doesn't have a 401k, that is a choice, isn't it? A lot of people don't consider retirement benefits, when choosing a job or employer. I've asked a time or two if someone's new job had a 401k or what, and they I just got a blank look. Young people don't care about that. I didn't either, when I was young.

Most big companies have 401k's or pension plans, though. Although the quality of them varies a lot, I'm sure.

People who work for the govt often have to give up Social Security in return for some sort of (smaller) govt benefit, or choose between one or the other, I've been told.
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Old Yesterday, 05:41 PM
 
Location: Boca Raton, FL
5,200 posts, read 8,723,157 times
Reputation: 6228
Default Small 401K

Small 401K from a past employer but only $6000 in it.

I decided it was too late and I've invested in real estate. Two properties not including my primary home - that is my 401K - LOL.

They are rentals. Need to find 2 more.

I meant to say that the rentals are my 401K (LOL). I still owe $$$ on my primary.

Last edited by Bette; Yesterday at 06:04 PM..
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