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Question for those that are more knowledgeable than me. I'm 37, considering a possible job change and the retirement plan is a big factor. Which one is better. To put 10% of my earnings away into profit sharing until I retire, (which who knows if that will even be possible in the next 25-30 years),. Or, have a pension that currently pays .60 cents on the dollar and just get that when I retire? I appreciate any input.
To put XX% of my earnings away into profit sharing until I retire...
Is this part of a 401K pretax & matched retirement plan? Maybe so.
Otherwise... the last place to INVEST retirement money is with the same company where you work.
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Or, have a pension that currently pays .60 cents on the dollar and just get that when I retire?
Is this part of a 401K pretax & matched retirement plan? Maybe so.
Otherwise... the last place to INVEST retirement money is with the same company where you work.
The NEW company has a pension plan?
My current company has the pension. It's through the Teamsters
My current company has the pension. It's through the Teamsters
Assuming the #of hours available and wage rates are comparable...
so that whichever job you take will gross similarly...
the Teamster Pension will be hard to beat as a retirement component.
That said... you should also do other things like funding a pretax IRA
(and investing in one or two of the quality index funds). LINK
Question for those that are more knowledgeable than me. I'm 37, considering a possible job change and the retirement plan is a big factor. Which one is better. To put 10% of my earnings away into profit sharing until I retire, (which who knows if that will even be possible in the next 25-30 years),. Or, have a pension that currently pays .60 cents on the dollar and just get that when I retire? I appreciate any input.
What happens if the company goes under? Employees at Worldcom and Enron had great profit-sharing and pension plans!
See a good fee-based CFP. Open an IRA, either Roth or traditional, and fund it every paycheck to the max. If there's a 401(k) plan, fund it as much as you can and hold a properly-balanced mix of assets.
Is this part of a 401K pretax & matched retirement plan? Maybe so.
Otherwise... the last place to INVEST retirement money is with the same company where you work.
The NEW company has a pension plan?
Profit sharing doesn't have to be invested with your company. My wife has a profit sharing plan and she gets X amount at the end of each year and invests it into Vanguard index funds.
You might be able to have your cake and eat it, too.
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Originally Posted by supertrucker212
My current company has the pension. It's through the Teamsters
How much longer do you need to work at your current company before you are vested in the Teamsters pension?
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Originally Posted by mizzourah2006
Profit sharing doesn't have to be invested with your company. My wife has a profit sharing plan and she gets X amount at the end of each year and invests it into Vanguard index funds.
And this is a good point. Exactly how is the profit-sharing plan at the new company set up?
Question for those that are more knowledgeable than me. I'm 37, considering a possible job change and the retirement plan is a big factor. Which one is better. To put 10% of my earnings away into profit sharing until I retire, (which who knows if that will even be possible in the next 25-30 years),. Or, have a pension that currently pays .60 cents on the dollar and just get that when I retire? I appreciate any input.
Stay with what you have, if you can stand it.
Funding their own retirement has not panned out for the great majority of people. We have several friends who did not understand the complexity of managing their own money or were badly disappointed in the results provided by a professional.
Google up "Failure of 401k plans".
It all sounds so simple and so sure on paper. Invest X. Then spend Y.
Late last year a relative got The Call from his professional money manager. The manager had turned in steady results for years. Then something (I don't know what) didn't work out.
Even well connected Bernie Madoff couldn't really deliver the steady return he claimed.
why can't you invest while earning a pension? or does the job not pay enough?
rather, if the other job pays a lot more, then put in more than 10%...
going by user name, and teamster... truck drivers/teamster have been having a pension fight the past few years, the pensions have been slowly getting reduced, it might be 0.30 to the dollar in 30 years. Should invest on your own even if you get a pension
Should invest on your own even if you get a pension
This is very sound advice. Opening an IRA or a Roth IRA is a good move for everyone, and you can always save using taxable accounts, too.
And if you're not too many years away from vesting, you could stay with your current position just long enough to vest into the pension, and then see if you could find another job that offers profit-sharing. Then you could have both.
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