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Does anyone have any ideas on how to calculate and compare scenarios projecting finances? Here's a general idea of what I'm trying to figure out. Which works out best, financially:
1) work full time for 1 year, save aggressively in 403b, let State make its contributions to 403b, pay some (but not all) of debt off, cut back to PT at present job (there are numerous possibilities here - any percentage back to 50%), continue to pay off debt more slowly
2) work full time for 2 years, save aggressively, pay off debt, cut back to PT at present job for 1 - 3 years, begin withdrawing from 403b after that
3) work full time for 2 years, save aggressively, pay off debt, move and find PT income (probably freelance higher ed writing or similar)
4) work full time for 3 years, save, pay off, work PT for one year, get early SS
5) work full time for 3 years, save, pay off, work PT for 5 years, switch to withdrawing from 403b and SS at full retirement age
and there are many combinations of the above variables. Those are just examples. Whether I continue to save at present rate or lesser rate in 403b also plays into it, and of course whether I begin to withdraw from it. Age at which to begin SS is also a variable.
I'm a State worker, but one of those who does not have a pension....not all of us do, unfortunately. We have good options as far as the 403b, which is similar to a 401K. I haven't branched into Roth IRAs or other products other than a savings account.
Yes it is hard and gets harder the more you know. I am not sure how far you are into the process but a spreadsheet analysis of the above optons is the way to go for your questions. However if you are just starting to look at retirement I would look for the retirement secion of mutual funds and on line brokers. Try https://www3.troweprice.com/ric/ricweb/public/ric.do to get started.
Since you live on Long Island, you can seriously improve your retirement finances by moving to a less expensive part of the country. That will have a much bigger effect than any of your listed choices.
Yes it is hard and gets harder the more you know. I am not sure how far you are into the process but a spreadsheet analysis of the above optons is the way to go for your questions. However if you are just starting to look at retirement I would look for the retirement secion of mutual funds and on line brokers. Try https://www3.troweprice.com/ric/ricweb/public/ric.do to get started.
Thanks, rjm. My brother recommends the T Rowe Price site, too. He uses them for his investments. I'll take a look.
I tend to get overwhelmed by the numbers and the way everything grows or changes at different rates. Maybe that's why I'm a writer and not a math/finance person.
Since you live on Long Island, you can seriously improve your retirement finances by moving to a less expensive part of the country. That will have a much bigger effect than any of your listed choices.
That's definitely something I'm considering, jrkliny. I'm thinking of Florida. The situation is that my home (a co-op apartment) is paid for, so my expenses are under control, and there are other factors, among them: my mom, who is 84, lives nearby; other family is in the area; the job, which could be turned into part time, is here. I'm trying to weigh it all out - and it's giving me a permanent headache!
Also if retiring and depending on employer contribution or supplemnt make sure if moving to a different state or in many cases region of the state that it is tranportable to that area.Also keepup with the chnages the new healthcare laws will mean for your insurance. My company adopted the mandates to be grandfathered in the bill terms and there are many changes.
Also if retiring and depending on employer contribution or supplemnt make sure if moving to a different state or in many cases region of the state that it is tranportable to that area.Also keepup with the chnages the new healthcare laws will mean for your insurance. My company adopted the mandates to be grandfathered in the bill terms and there are many changes.
I know, I have to catch up on all that. This year at work our costs changed as far as what we have to pay toward health insurance. The State covers most of it. Supposedly my plan is good anywhere I can find doctors who accept it, but since it's a NY plan, most of those docs are in NY.
Retirement planning can be very challenging. All I can say is to echo what others have said and to use a variety of approriate caluclators and crunch the numbers hundreds of times over and over in with different inputs etc etc. Eventually a picture will emerge as you narrow options down and keep playing those over and over until you reach a level of confidence.
Retirement planning can be very challenging. All I can say is to echo what others have said and to use a variety of approriate caluclators and crunch the numbers hundreds of times over and over in with different inputs etc etc. Eventually a picture will emerge as you narrow options down and keep playing those over and over until you reach a level of confidence.
Good advice. It's hard to find calculators that will help me figure out certain things, for example:
- how much my 401k will grow with continued State and personal contributions if I work at 80%, 60%, 50%, etc. at current job.
- which is better value, working longer/paying off loan faster/then dropping back to PT? or dropping back sooner/paying longer, all the while getting State contribs to 401k.
Comparing the values and the rates of change among the various components is hard to figure out. Some may go up while others go down, if you see what I mean. The calculators I've worked with so far are fairly simple - there's not enough room to put in all of the factors that may come into play. So I'll be plugging along with one, and then there's no way for me to tell it about royalty checks or something, and it goes and tells me I have to work until I'm 99.
I think I know which is the safest route to take, but I also feel that I don't want to be tied to this job too many more years. I want to do other things that are very important to me, and not wait too long. So, in a way, I'm looking for a retirement date that's at the acceptable-risk point. It may not be entirely foolproof (what is?), but it should be an acceptable risk.
Agh, I just came back here and reread some of my old posts, and I was so confused back then! Much has changed in the past 2+ years since I started this thread:
I've worked hard and saved aggressively
the economy seems to be on an upswing
my last kid is leaving L.I. next month
my mom passed last October
I got married in May!
I've reached my savings goals
I'm fully retiring next year, probably end of June
We're most likely moving out of state, probably to Vermont, where my husband has a going business (and he hates L.I.)
I'm ready for a quieter life
2012 was a difficult year, but now it feels as if everything is coming together. It just goes to show that all you can do is make the smartest decisions you can at any point in your life, accept the fact that life will change and both good and bad things will happen, and always have a plan B!
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Update from Sweepea
