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.

Filter by
Sorted by
Tagged with
3
votes
3answers
316 views

Should I contribute to a 401k pre-tax or Roth after tax if I plan to work for a year and then go back to grad school?

I am completely new to investment for retirement, and just got my first job. My job offers a 401k pre-tax and a Roth after-tax. However I plan return to grad school after one year of working. Is it ...
1
vote
2answers
99 views

Lifecycle Investing through index options

I'm a young DIY investor who is looking for ways to consistently implement the approach outlined in the Lifecycle Investing book by Barry Nalebuff and Ian Ayres. In short, they suggest using moderate ...
4
votes
4answers
185 views

What am I not considering in my current Financial Plan?

Standard Caveat: I understand the opinions expressed on this forum do not represent financial or legal advice. With that said, I have a long term goal to preserve and build wealth (in that order) and ...
2
votes
1answer
39 views

CARES-related withdrawal: eligible plan vs. opt-in

It seems a qualified individual with an eligible retirement plan can apply CARES act provisions with regard to withdrawals/distributions received during calendar year 2020, whether or not the plan ...
8
votes
3answers
1k views

Are traditional pensions still optimal in the 21st century? [closed]

I have long had an issue with traditional pensions, I searched around and found some people at least seem to share some similar thoughts. In short, my concerns are: Too restrictive (you can't use the ...
2
votes
0answers
54 views

What to do with US retirement plan after moving to Canada

I have accumulated a few tens of thousands of USD in 403(b) retirement plans with TIAA and Fidelity. I recently moved to Canada. I am not planning to return to the US anytime soon or ever. Is it wise ...
20
votes
10answers
6k views

Does the “15% into retirement” rule include employer contributions?

I keep seeing that you should be putting 15% of your income (link2, link3) into a retirement account. Does that include the employer match? For instance, if my employer has a 4% match, do I still put ...
6
votes
2answers
170 views

How do I get confidence that I am planning for retirement correctly

So, I am not a big spender. I have some investment in stocks and focus on monthly savings and don’t usually splurge money. That said, I don’t know if I am doing enough to save enough money for ...
2
votes
1answer
129 views

401K Liquidation

I contributed to a 401(k) for the past three years and due to market volatility there is no gain in my contribution. Its hard earned money. Is it possible to sell all the stocks and bonds contributed?...
16
votes
12answers
4k views

How can I offset the risk of a market crash when making a retirement plan?

Most retirement plans in America today are built upon investment portfolios - whether it's a 401K or some other scheme similar to it, they're built upon the idea that stocks will, over time, increase ...
1
vote
1answer
20 views

What is a 3(21) or 3(38) fiduciary? [321, 338]

My financial guy mentioned different kinds of fiduciaries by number, 3(21) and 3(38). What do they mean? Where are they defined?
2
votes
1answer
128 views

Can a previous employer contribute to my closed 401k after termination

I was terminated in late January of 2020 by my previous employer. I had worked for them for 5 years and 2 months. I had over 5k in my 401k account and withdrew it all a couple days after termination (...
1
vote
1answer
372 views

Is it possible to retire investing $20,000 a year for 43 years? [closed]

If I put $20,000 a year in a retirement fund for 43 years, is it possible to reach $1,000,000 in 43 years?and if so, what retirement funds are good to invest? And I am talking about a retirement fund ...
0
votes
1answer
201 views

How much should you put in a 401k plan?

I am making ~$145,000 per year and was wondering if it is wise to contribute 12% pre-tax to my 401k? Is this too much? Is there any disadvantage in contributing nothing? I am already well off (come ...
1
vote
0answers
50 views

Excess contribution to 403b

We had 39000 taken out from our payroll last year and put into the company 403b plan. Now we realize that this is more than the 25000 allowed. (19000 + 6000 over 50 years old) How can we handle ...
0
votes
0answers
30 views

Do employers receive any financial benefit from offering a RRSP/401K matching program? [duplicate]

I understand that companies that offer RRSP matching programs may be more attractive to work for/have better employee retention, and the employers may get warm fuzzies from offering it to their ...
0
votes
2answers
77 views

Is employee's 401(k) contribution still a tax deduction for employer through “wages paid”?

Small business owners can claim wages paid to employees as tax deduction. If one of his employees would elect to contribute $15K of his salary into 401(k) account then would the employer still be able ...
3
votes
1answer
472 views

Why are Vanguard's 2050 and beyond target retirement date funds badly underperforming the S&P?

At work, we're in the process from switching from an IRA to a 401(k) and I've been looking at the different fund options. What struck me as very strange was how poorly the Vanguard Target Retirement ...
-2
votes
1answer
530 views

Can you retire when owning 3 or 4 houses, and what if you still have to pay mortgage on some of them?

I did some calculations before, and found out if a person own 3 or 4 houses, townhouses, or condos, then the person can probably retire. That's including living in one house, and getting rent from 2 ...
3
votes
0answers
83 views

Can one take retirement benefits from both Europe and the US?

Person A, a German citizen who currently holds a US green card and lives in the US, worked earlier in their life in three different European countries, contributing to various government-sponsored ...
1
vote
0answers
37 views

Is an online “savings withdrawal” calculator a reasonable model for retirement investment draw downs?

I want to calculate a two-phase retirement, with Phase I being the period prior to filing for Social Security retirement benefits, and Phase II being the post-filing period. Is it reasonable to use ...
1
vote
2answers
62 views

Do post-retirement earnings affect the amount of the benefit?

Suppose Person A, who does not have a full 35 years of earnings, and was not a high earner, files for retirement benefits at age 62. The benefits will be rather small. What if Person A starts ...
1
vote
1answer
82 views

Are the low earning spouse's earnings basically irrelevant for Social Security retirement benefit purposes?

Spouse A is in their mid-sixties and was the lower earner by far. Spouse B is five years younger and had a very good salary, but only from the past twenty years. (The previous years' income was zero.) ...
0
votes
1answer
26 views

Can EPF be withdrawn at this time?

I am considering to withdraw my EPF account, will the return amount be lower if removed now, than waiting for the future as my current situation is bad , as i am leaving my organisation.
2
votes
1answer
237 views

I plan to cash out my entire 401k within 2 years, should I maximize my contributions or should I minimize them and invest in money market/index funds?

I have a serious medical issue that makes collecting my 401k benefit a near impossibility. I have about 20k saved up in my 401k and we’ll call it $60k in the market mostly in index funds/ETFs. I ...
2
votes
3answers
262 views

Estimating nest egg and inflation

First a couple paragraphs for me to lay out my understanding and then my actual question. It is often reported that one can estimate how much they need for retirement by taking their current expenses ...
1
vote
1answer
106 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 ...
1
vote
1answer
190 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 “...
27
votes
5answers
11k views

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 ...
0
votes
1answer
232 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 ...
14
votes
8answers
28k 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 ...
2
votes
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 ...
2
votes
2answers
178 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 ...
0
votes
0answers
36 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 ...
1
vote
2answers
134 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 ...
1
vote
1answer
40 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 ...
0
votes
1answer
131 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 ...
0
votes
0answers
48 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 ...
1
vote
1answer
46 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. ...
6
votes
4answers
619 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 ...
4
votes
1answer
174 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 ...
3
votes
1answer
117 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 ...
0
votes
1answer
74 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 ...
2
votes
2answers
165 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 ...
51
votes
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 ...
25
votes
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 ...
7
votes
1answer
358 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 ...
4
votes
3answers
261 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 ...
1
vote
1answer
118 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 ...
3
votes
1answer
434 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 ...

1
2 3 4 5