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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52
votes
8answers
20k 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 ...
51
votes
2answers
8k views

When is employer 401(k) match not worth it?

I have always read to take full advantage of your employer 401(k) match. But what if the match is lower than most? My employer will match 10% of my contributions, up to the legal contribution limit. ...
40
votes
9answers
10k views

What are the downsides that prevent more people from working in high-income countries, and then retiring in low-income (and cost of living) ones?

Having experienced living in several different countries, the reality of different salary ranges and different costs of living has struck me. You can work at a high salary country and make huge ...
40
votes
4answers
6k views

Justification for aggressive investment strategy when young?

I've frequently heard that the conventional wisdom is to be invested in an 'aggressive' investment strategy when young, and as you approach retirement age, migrate to a more conservative strategy. ...
35
votes
8answers
8k views

How much should you save for retirement in a country that automatically takes care of retirement savings?

I live in Denmark. Most people will automatically receive three sorts of retirement incomes. There's the state pension which is universal (you will receive 12.500 dollars pre-tax annually, which can ...
33
votes
5answers
9k views

Why is half of your IRA Required Minimum Distribution forfeited if you do not make minumum withdrawals by 70.5 years of age?

I do not understand this rule: "IRA confiscates half of your account if you do not make your withdrawals by 70.5 years of age". Why? What does it mean to make withdrawals? Just to request your money ...
32
votes
5answers
7k views

What is the median retirement savings in the United States today?

http://www.cnbc.com/2016/09/12/heres-how-much-the-average-american-family-has-saved-for-retirement.html The median for all families in the U.S. is just $5,000, and the median for families with ...
29
votes
6answers
5k views

Is a Roth IRA good for a high schooler?

I am a high-school Senior who will not earn enough income working this summer to have to pay income taxes. I have a full ride to college, so I was thinking of using my earnings/savings for retirement. ...
28
votes
5answers
7k views

How much money do I need to retire?

Assume that I need $15,000 (USD) per year to cover all my costs including health insurance. How much money do I need to retire? The naive approach would be something like this: An ETF gives, on ...
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 ...
26
votes
11answers
9k views

Is 401k as good as it sounds given the way it is taxed?

I contribute full 18 to my 401k thinking I am letting my money grow untaxed for such a long time. However, looking at how 401k is taxed when I pull the money out, it does not sound like a great deal ...
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 ...
25
votes
10answers
3k views

Any experience with maxing out 401(k)?

I'm 23 right now, and I'm currently contributing about 6% of my salary to a 401(k) with an employer that matches 20% of my contribution up to 6%. Based on various calculators, continuing at this rate ...
22
votes
10answers
9k 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 ...
19
votes
6answers
6k views

If I make over 120k a year, what are my options for retirement plans?

I will be starting a job on Monday that yearly will net me in excess of 120k. I know that this income exceeds the maximum earnings for a Roth IRA and I'm sure other things. I'm a complete newbie when ...
18
votes
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 ...
17
votes
6answers
5k views

New company doesn't allow 401k deposits for 6 months, what to do with money I used to deposit?

I plan on taking a new job that does not allow employee 401k contributions for the first 6 months. I am used to maxing out my 401k, and this seems like a dangerous amount of money that I don't want ...
17
votes
3answers
1k views

Does the following kind of retirement product exist?

Say I am 65 and want to retire and I have saved up $1 million over my lifetime. I also want to use this money up before I die because I have no heirs. Let's say the average life span of humans is 85 ...
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 ...
15
votes
11answers
7k views

I am failing to see the purpose of a Traditional IRA for someone who already has access to a 401(k)

If I understand correctly, the Traditional IRA, if you have 401k with an employer already, has the following features per IRS: Your contributions are taxed Your contributions are NOT taxed upon ...
15
votes
4answers
2k views

How much money do I need to have saved up for retirement?

I'm 29, and just started a new job with an excellent mandatory retirement plan. I contribute 5.5 percent of my salary and my employer deposits an amount equal to 8.5 percent of my salary. I have a ...
14
votes
7answers
2k views

Pros & cons in Hungary of investing retirement savings exclusively in silver? What better alternatives, given my concerns?

For my retirement savings, my strategy is to buy a decent amount of silver (8% of my salary, roughly 1 month) every year to put away in coin form. I am currently investing in nothing else for the long ...
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 ...
14
votes
1answer
200 views

How are retirement needs calculated for a couple with disparate ages?

Given typical assumptions about changes in expenditures in retirement versus earning years, retirement advice and calculators do not appear to adequately address retirement planning for couples with ...
13
votes
1answer
2k views

Should I begin investing in a 403(b)

To start off, I'm very naive when it comes to these issues. I know virtually nothing about retirement funds. I'm 24 years old, and currently in my second year of a gap between undergrad and PhD ...
12
votes
9answers
873 views

Why is retirement planning so commonly recommended?

I'm just graduating college, and I'm starting to educate myself on economics, finance, and investing, and everything I see is sort of screaming at me "PLAN YOUR RETIREMENT!!" Now, I know this sounds ...
12
votes
4answers
5k views

Have I left investing until too late?

I'm 44 and have only the investment of a house. I was scared off ISAs (individual savings accounts) etc because of the complexity, choice, etc and only now have I come to make the decision to open an ...
12
votes
3answers
894 views

Should I get out of debt fast using Dave Ramsey's Tactics?

I currently am $31,000 in debt from school and a personal loan and I am looking to pay it off. I just started a new job; I am 21 years old, fresh out of college. I am making around 50K USD. I have ...
11
votes
3answers
2k views

Should I exclude bonds from our retirement investment portfolio if our time horizon is still long enough?

My wife and I (ages 35 and 38) have 25-30 years until we reach retirement age, and I'm doing some research regarding our asset allocation. In addition to various podcasts, articles, and online posts, ...
11
votes
2answers
524 views

Has anyone created a documentary about folks who fail to save enough for retirement?

In this question, the OP suspects that she simply needs to select the right annuity to solve her money problems. And in her defense, many financial institution commercials try to convince soon-to-be ...
10
votes
5answers
2k views

Scared of money being "locked away" in retirement accounts

I have a reasonably comfortable emergency fund, some other savings, and some accounts I manage myself invested in stocks and funds. However I have only a minimal sum in pensions and retirement ...
10
votes
3answers
2k views

Should I consolidate my retirement plans if both are performing well?

I worked for a company between 2010-2014, and have an established retirement plan through T. Rowe Price which they matched into. In 2014, I changed jobs and had a new retirement plan opened under ...
10
votes
3answers
2k views

How to take care of pension funds if career is spread over many different countries?

I am a young academic from The Netherlands presently working in Sweden. Due to the nature of modern Academia, I expect that within the next 40+ years, I will be working in many different countries ...
9
votes
3answers
806 views

I have a horrible 401k plan, with high expenses. Should I stay with it or move my money elsewhere?

I'm in need of help choosing options for my 401k. Unfortunately, they are not very good. Nearly all of the expense costs are over 2%! But I have brought it up with my HR to see if there is any way to ...
9
votes
3answers
556 views

How to find a good third-party, 401k management/advice service?

I have a 401k with my employer that offers a pretty good contribution matching benefit. I am young and I've had the plan for about 5 years and my money is starting to grow into a pool that is big ...
9
votes
2answers
24k views

Tax implications for a 100% 401k contribution limit

My company permits a contribution of a 100% of the paycheck towards the 401k. My question is, if I were to pick a 100% contribution amount, would I be liable for any taxes in the number of paychecks ...
9
votes
1answer
3k views

Options for a Simple IRA when leaving a job: Leave as is or roll it over?

I currently have a Roth IRA that I max out every year. My current company had Simple IRA and contributed 2% of my salary and I contributed 6000 a year. Now I am leaving the company and was hired by ...
8
votes
6answers
1k views

When should I start saving/investing for my retirement?

I just started out with my first job and I was curious, what is a good time when I should start with my long term saving plans? Update: Thanks for the advice and I was expecting that answer. So my ...
8
votes
6answers
762 views

How can I possibly retire comfortably?

I'm 35. I have $50k in an IRA. Using an online IRA calculator, I find that I'll have less than $900k at retirement, assuming I work until I'm 67, and I continue to make the full contribution to the ...
8
votes
4answers
13k views

How should one account for inflation when planning retirement savings and withdrawals?

Let's say one had a goal of saving $x, in order to live off of (say) 4-5% interest on the principal. How do you then account for inflation? Do you assume some rate and increase how much you would ...
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 ...
8
votes
2answers
1k views

Within the same calendar year: Current job does not offer a 401k. So I contributed to an IRA. Future job does. Can I still contribute to the new 401k?

Current job does not offer a 401k account. So I contributed yearly maximum to a Traditional IRA. My new job does offer a 401k plan. Can I still contribute to the new 401k for the year?
8
votes
1answer
879 views

Which retirement accounts can my spouse spend immediately if I die?

Which, if any, of my tax-advantaged retirement accounts would my spouse be able to access without tax penalties if I die before she is 59 1/2? I have a 401(k), a Roth IRA, and an HSA. My spouse is ...
8
votes
2answers
416 views

What, if any, IRA options are permitted with my high salary?

I am single, and make more money (more than $200k) than any of the limits I've seen for contributions or deductions for either Roth or traditional IRAs. My employer has a 401k plan. I currently do ...
8
votes
2answers
421 views

Should I prioritize retirement savings inside of my HSA?

This year I switched my family from a traditional PPO plan to a high deductible plan with an HSA. This is a great move for our family. I have been reading about using an HSA as an investment vehicle ...
7
votes
5answers
3k 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 ...
7
votes
2answers
1k views

Is my "retire young" strategy a sensible one?

My goal is to have enough to retire at 40. I have 11 years to go (I'm 29) as of the past 15th. To be clear, I don't plan on retiring, maybe ever, but I want to have enough to just quit one day if I ...
7
votes
1answer
1k views

Can I contribute money to a 401k, 457b, and an IRA all at the same time?

I am a retiree who is returning to full time work. Can I contribute the maximum to my full time job's 401(k) and to my part time job's 457(b)? And then also contribute the maximum to an IRA?
7
votes
1answer
370 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 ...
6
votes
1answer
2k views

cashing 401(k) including company match

If I cash out my 401(k) account with my previous employer, will I be able to take both my contribution and the company match at the same time ? I assume I will pay 40% of tax (penalty + tax) on both ...

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