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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.

52
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 ...
49
votes
2answers
7k 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. ...
41
votes
4answers
5k 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. ...
39
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 ...
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 ...
25
votes
4answers
19k 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
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 ...
24
votes
10answers
2k 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 ...
19
votes
6answers
5k 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
5answers
4k 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
981 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 ...
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
1answer
188 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
809 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 ...
11
votes
3answers
780 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 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 ...
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
505 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
1k 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
2answers
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
775 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
501 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
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
680 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
11k 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
2answers
914 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 ...
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
2answers
18k 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 ...
8
votes
1answer
861 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
302 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
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 ...
7
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 ...
7
votes
2answers
312 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 ...
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 ...
6
votes
3answers
677 views

Is Cash Value Life Insurance (“whole life” insurance) a good idea for my future?

I sat down with an insurance representitive today and listened to their proposal regarding Cash Value Life Insurance (CVLI) and long term investing. I am a 36 year old guy recently married with no ...
6
votes
3answers
770 views

Can't withdraw from 401k because plan trustee can't be found

My previous employer (startup in Silicon Valley) was acquired by a foreign company about 2 years ago, and the parent company laid off pretty much everyone about 1 year ago, which I was a part of. I ...
6
votes
3answers
247 views

Suggested ways to save for a comfortable retirment in the UK given the lifetime allowance limits on pensions?

I've heard the rumor that this March's UK Budget will lower the Lifetime Allowance (LTA) from £1M to £800k or even less. They might index this for inflation. That seems to me to be a pretty low ...
6
votes
2answers
280 views

Sell home and buy a smaller one for cash?

Wondering what the unknown gotchas that would be involved in my selling my home and with the profits, buy a smaller one for cash to avoid mortgage payments. Some info: I live in California, U.S.A.; I ...
6
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?
6
votes
1answer
105 views

Can a 403b contribution be rescinded?

My wife started a new job very late in 2015. She signed up for the retirement plan, a 403b plan and contributed approximately $200. Now doing our taxes, (married, filing jointly) we find we cannot ...
6
votes
2answers
142 views

When is it worth looking at charitable remainder trusts?

My alma mater, like many colleges and charities, offers the option for larger donations of setting up a charitable remainder trust. Basically, in exchange for your committing the donation while you're ...
6
votes
1answer
246 views

Pensions - Where to start? (UK)

What are the key decisions that I need to make and what key information should I know before starting a Pension in the UK? I am 24 and living in the UK. I want, well more like should, start a pension ...
6
votes
1answer
431 views

On average, is it a good idea to check off the “automatic rebalancing” checkbox on a managed retirement plan?

In my area, my employer offers a managed retirement savings plan with generous matching contributions. The plan offers very limited control over investment choices (a narrow range of abstract mutual ...
6
votes
1answer
148 views

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

If I apply the information from Global News, MoneySense, the Wealthy Barber, and Reddit to the facts beneath, then then my dad oughtn't contribute to RRSP, correct? Thanks! Facts He's 63 years old, ...