Questions tagged [retirement-plan]

This tag should be used for any questions related to schemes for retirement or post-retirement planning or saving. A country specific tag should also be used if the question pertains to specific geography. There are some tags specific for certain retirement plans like 401k, roth-401k, rrsp that can also be used.

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97 views

Retirement Plan Returns Formula

My income after tax is $48,060 and I'm contributing 6% of my income into my retirement account. My estimated income increase is 2.6% per year, which I hope to include in my retirement account. The ...
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1answer
142 views

What is a Mega Backdoor Roth IRA?

The so-called "Mega Backdoor Roth IRA" was coined in the following article in 2014: I don’t hear about new ideas very often, but here is one that a few people might find very useful. I call it the “...
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5answers
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Why do baby boomers have to sell 5% of their retirement accounts by the end of the year?

This article on Marketwatch quotes Raoul Pal of Goldman Sachs claiming that baby boomers have to sell 5% of their retirement accounts by the end of the year. Here is the specific passage: Pal says ...
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1answer
215 views

How long would it take someone born in 1940 to save 25 times their annual salary?

Assume the person starts working at 25 and earns the average salary for whatever year it is at the time (changing every year). Assume that they save 20% of every pay cheque and invest it in an account ...
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8answers
26k views

Practicality of 30 year fixed mortgage at 55 years of age

I understand that lenders cannot discriminate based on age, but is there really data to support that lenders do not do that? But suppose if one gets the mortgage when he/she is 55 years or older and ...
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0answers
57 views

What to do if company is not honoring vesting schedule in Pension Protection Act?

Let's say someone works for a company that lets employees contribute to a 401k, and the employer offers a match. Based on my read of the 2006 Pension Protection Act (beginning on p. 2 of the linked ...
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2answers
148 views

Index funds vs 3 funds financial products for long-term investment / retirement

Some company is trying to sell me financial products where there are 3 funds: Apologies that it's in German. Rough translations: Left one: This fund secures the selected guarantee. Center one: This ...
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0answers
32 views

DCA into an index? [duplicate]

We have acquired a large sum from the sale of a home and want to invest it responsibly. Our long term return expectation is a mere 6.8%/yr, selected by looking at the worst 20yr stretch of the SP500 ...
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2answers
128 views

basic retirement planning for someone middle-aged

I'm in my early 40s and haven't done anything for retirement yet. I do own some property which I plan to sell later this year, and I'm planning to use the proceeds to plan for retirement. The proceeds ...
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1answer
39 views

Is there any loss to removing default 3 fund houses of National Pension Scheme India?

As a government employee in India (CG), we are not allowed to choose aggressive investment strategy in NPS. Apart from that any change in the scheme requires us to choose only one Fund house which I ...
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1answer
89 views

In one year, what's the maximum I can contribute to RRSP, from past unused contribution room?

My dad is 63 and lives in Ontario.. He maxed out his TFSA. His annual pre-tax income is $50K. Here is a screen-shot of his CRA online account: He never opened a RRSP, thus the $100K must've been ...
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0answers
41 views

One RA vs multiple RA's (investments in general as well)

I am young and trying to work out how I want to get a retirement annuity sorted. My question is, is it better to put 9 in to one RA, or 3 3 3 in to 3 different RA's? (here I just use the numbers to ...
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1answer
44 views

Not quite vested in a defined-benefit plan

Another question on this stack made me curious about this: From 1999 to 2003 I worked at an unpleasant place. The retirement plan was a defined benefit plan in which one was vested after 5 years. ...
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4answers
593 views

Where to save for retirement

TLDR: Given the option to save for retirement in Europe, USA or Japan where is the ideal place to save up money and why? So I'm somewhat of a global citizen who has been moving around the world ...
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1answer
169 views

How much real rate of return should I assume on a retirement portfolio?

With an annuity calculator I can calculate how much money do I need to collect so I can retire and live off it. I can estimate my monthly living expenses and my remaining lifespan. But I have no good ...
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1answer
91 views

What are the limitations on rollovers to an IRA?

My friend wants to consolidate his various retirement account accumulated over the past 20-30 years to make it easier to manage/track his retirement savings. He doesn't recall immediately all the ...
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1answer
62 views

Do I have to pay taxes on external savings?

I am thinking on moving to Canada to work, save for retirement, and move back to Portugal due to the lower cost of living to live my retirement. I will contribute to the Canada Pension Plan and also ...
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2answers
151 views

TFSA and have $1M dollar after 40 years at 5.5% interest with $500 year bump 2% annual inflation rate : Is it an efficient way to be a millionaire?

Is it true that if I fix 5500 dollars at a TFSA (Tax-Free Savings Account) at 5.5% interest and 500 dollars yearly bump then after 40 years someone will retire with a million dollar? Is it an ...
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8answers
19k views

Aging parents with no investments

My aging parents (75/77years) own a house on 35+ acres (14+ hectares) in rural NE USA (no mortgage). They have: No investments (other than the obvious property) Savings of maybe $30k in a bank ...
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4answers
20k views

Have I saved too much for retirement so far?

I currently have a roth ira as well as a 401k from fidelity. I have around 350k in my 401k and another 10k in my Roth IRA. I just turned 40 recently. Am I saving too much for retirement and should I ...
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1answer
315 views

Ought a 63-year old working hotel employee commence an RRSP?

If I understood Global News, MoneySense, the Wealthy Barber, and Reddit, my dad ought NOT start or contribute to an RRSP! Right? Thanks. Facts He's 63 years old, and has no children under 18. He ...
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3answers
224 views

How to balance saving for retirement with saving for a house?

Situation: Married w/ kids, 29, about to finish grad school, no debt. Accepted a job offer with $87k salary and an employer contribution to an SEP-IRA equal to $13k/year. No additional household ...
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1answer
112 views

End balance after x years of an account with fixed interest rate and growing withdrawals

I am looking for a formula to calculate the balance on my savings account after x years whereby this savingsaccount has a fixed interest rate and my withdrawals increase each year (because of ...
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1answer
367 views

My 401k failed the nondiscrimination test — how to avoid taxable distribution?

As in this question, and this question, my ex-company's 401(k) failed the nondiscrimination test. I've recently received a letter from the company's HR to the effect that I will receive a corrective ...
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0answers
48 views

Do I need to pay tax in the US on funds withdrawn from a pre-existing PF account in India

I have a PF [retirement] account through my employment in India, before moving to the US in Aug 2012. However, there were no fresh contributions made to this accounts during my residency in the US. ...
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2answers
87 views

Investing in a target date fund for retirement [closed]

Any suggestions about investing in a Vanguard target date fund 2045 for a Roth IRA? I'm 38 years old. Is 90/10 stocks/bonds too heavy for my age?
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1answer
44 views

Are Governmental Roth 457b Distributions taxed if someone still works for the employer?

If someone has a Roth 457b plan, they're allowed to withdraw all the cash tax-free after they no longer work for the employer (as long as it's a qualified distribution). But if someone Still Works ...
4
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2answers
233 views

Options for non-US person outside US with 401(k)

This question is somewhat related to this one. I'm a non-US person (mid 30s) currently living and working in Europe. Previously, I lived and worked in the US (Massachusetts) for >3 years. In order to ...
2
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2answers
280 views

Can I reduce the tax penalty on a 401k loan default by making an additional contribution?

I changed jobs recently, not of my own volition. I'm now rolling over a 401k account with my previous employer to one with my current employer. Three years ago I took a 401k loan with a 10 year term ...
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2answers
172 views

If your 401(k) doesn't match contributions, should you max out your IRA contributions before contributing to it?

I've seen described three main advantages of 401(k)'s over IRAs: Employers often match 401(k) contributions. If your employer offers a 401(k), then the deductability of contributions to a traditional ...
4
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1answer
150 views

Why are the investment options in a 401(k) so limited?

Why is it that with my IRA I can buy individual stocks, ETF's, mutual funds, etc yet in my 401(k) plan I am limited to select funds? Luckily the funds I have to choose from are decent but I can't ...
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2answers
153 views

How to calculate how long my money would last

I want to calculate how much money I'll need in retirement. For that I want to calculate how long my money will last. I'm not sure if there is a formula for that. Lets say we have this simple ...
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1answer
578 views

Minimum Required Nest Egg Formula?

As a follow-up to this question, what is the minimum size of a nest egg to support 30 years of $5,583.33 monthly distributions? I want the $5,583.33 to increase with inflation each month. The ...
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5answers
2k views

Is this a reasonable financial plan? - Spend all of your money every few years? [closed]

Ok, the title is intentionally a bit facetious. But a bit about my current situation. I live in Europe (a high cost of living country) and save around 10,000 Euros per year. I have been doing this ...
2
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3answers
220 views

Effective Tax Rate in Retirement

Suppose that I'd like to net $5k of monthly income ($60k per year after taxes) from my 401k when I retire in 20 years. For 2017, I would need $69.5k gross distributions from my 401k because my ...
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2answers
148 views

Allocation basics not so basic [closed]

I've been trying to put together a long-term (15-20 years) ETF portfolio (stocks only, no bonds). As I read about the investment and allocation basics, I realized it's far from simple. I would like my ...
18
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2answers
4k views

Continue to save?

I'm in my late twenties and have, thus far placed a keen focus on having a healthy personal finance. I'm reaching a point where I'm starting to question if I'm placing too much emphasis on it. My ...
4
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2answers
241 views

How to save for pension in Switzerland when moving around?

I am a 28 year old Swedish citizen living in Switzerland as a PhD student. It is possible that I will move internationally one or more times before settling down. I will stay for at least 3 years, ...
4
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2answers
296 views

Roll Over High-Fee 401(k) but lose unvested employer contribution?

I'm still a student (2 more semesters), but recently completed an internship with GoodCompany that provided me a 401(k) matching plan. While I have about $1200 in it, I'm only vested in my ...
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3answers
110 views

When planning for retirement, should $18k plan be from employer and employee?

As the title states, if I am saving and my employer matches equals $18k or more, does that meet the intent of saving at least $18k a year for retirement? For example, hypothetically saving $3k and ...
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6answers
258 views

What, if any asset classes, acted contrarily correlated during crash of 2008

This is a meta question about diversification, and if it truly exists for passive investors. i.e. Investors investing in 401ks, IRAs, Roths, primarily using ETFs or fund with large pool of stocks. ...
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0answers
56 views

Roth 401(k) Loan

I am thinking about taking out a loan from the Roth 401(k) plan. The idea behind the loan is to put more money into the Roth 401(k). I would like to charge myself a very high rate of interest, say 20%,...
4
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2answers
354 views

What is the source for the maximum total annual 401k contributions?

Not that it would make much sense to put all of your income into a retirement account but why could I not deposit say 100k into a 401k in one year? What exactly prevents me from doing such a thing if ...
0
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1answer
65 views

When will i get my defined contribution and 403b match?

I started working at this org at the end of January. I was wondering when I will be eligible for the defined contribution plan, and the 403b match. I am kind of confused, thought maybe someone could ...
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3answers
332 views

Is it safe if I rely “only” on mutual funds for retirement planning?

I am investing in mutual funds to raise retirement fund. My portfolio is 25% debt and 75% equity currently. I have self occupied property. Before few years of retirement, I will start to switch fund ...
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1answer
237 views

Is Private Pension Worth It

I am 23 and now looking into what to do with some leftover monthly money. My question is whether getting a pension is worth it or not. Are pensions in general just scams? Am I just wasting money on a ...
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1answer
2k views

Meaning of EPF codes PUPUN Full Form - Should this not be MHPUN

I have searched PF code meaning for Pune - Maharashtra. It is showing PU/PUN. Generally my understanding is say for Karnataka First two alphabet is KN which means Karnataka state. So Maharastra it ...
3
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2answers
194 views

How are Social Security Benefits adjusted after early retirement, when collection is delayed to 70?

After trying multiple calculators, from ssa.gov (https://www.ssa.gov/benefits/retirement/estimator.html) and others (for example https://www.aarp.org/work/social-security/social-security-benefits-...
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0answers
158 views

Retirement plans for my mother

My mother has never had a retirement plan (she has worked for years in family houses but that kind of work is often underpaid and doesn't count towards retirement) and now I am very worried about her ...
2
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1answer
134 views

Should I Contribute to my roth 403b or roth IRA?

I currently have a Roth IRA Account I started a few years back when I was in college. Only have like 1300$ in it now. I started a full-time job now and I have a 403b plan. The thing is, I will not be ...