Questions tagged [retirement]

This tag should be used for any questions related to retirement or post-retirement, such as planning or saving for retirement, or asking about benefits or issues after retirement.

Filter by
Sorted by
Tagged with
166
votes
6answers
32k views

What happens to people without any retirement savings?

I'm not sure if this is a naive question. I'm struggling mightily with a family member (and everyone has a similar story) who just cannot make the right financial decisions. This person will forever ...
151
votes
24answers
53k views

Why do people save so much?

When I am old and retired (70 years +), I don't plan to spend a lot of money. I'll be living in my own house that is already paid off at that point, so no rent or mortgage payments. Since I don't need ...
128
votes
8answers
22k views

Oversimplify it for me: the correct order of investing

I have been reading the top posts here, and the recommendations for what to invest in are often similar. What I'd like to know, in as simply of terms as possible, is what the consensus is on priority ...
63
votes
3answers
11k views

Saving for retirement: How much is enough?

How to save I'm in my late twenties and am trying to get started off on the right foot saving for retirement. I have learned that retirement savings should usually be placed in retirement accounts in ...
57
votes
11answers
7k views

Should you always max out contributions to your 401k?

I am a year out of college, and therefore, i don't have any real retirement/investment plans kicked off. I was having a discussion with my boss, and he was making a few claims I would like to get ...
52
votes
6answers
8k views

What is the best asset allocation for a retirement portfolio, and why?

Based on financial conversations I've had with trusted family members, I believe that asset allocation is one of the more critical things to "get right" during retirement savings. Based on 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 ...
40
votes
4answers
14k views

Is a higher salary worth not having a 401(k)?

An individual recently got offered a job that paid significantly more than what she is making now (more than $18k - which is the maximum 401(k) contribution). She currently makes $30k a year. However, ...
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 ...
34
votes
6answers
9k views

How risky is real estate?

I have a friend who plans to retire by putting all of his money in local real estate. He makes a huge return on investment on the property he has now - something like 25%. Fundamentally, I think ...
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 ...
32
votes
3answers
10k views

Would compound interest work better if all my accounts were combined into one?

My wife and I currently have three retirement accounts from different jobs. The only one currently getting paid into is my TSP account. Would we realize better gains if we combined the other two ...
30
votes
1answer
959 views

What are the differences between a “traditional” IRA and a Roth IRA?

I hear that a traditional IRA offers a tax deduction whereas a Roth IRA doesn't, but there's got to be more to it than that: What makes a Roth IRA any good, if it doesn't provide a tax deduction? ...
29
votes
16answers
10k views

Why should a person approaching retirement age make their portfolio less risky?

It seems to be common knowledge that a younger person should invest their retirement funds in growth stocks since they can ride out any market swings. It is also common knowledge that as a person ...
28
votes
4answers
9k views

How to retire early without penalty?

Logistically speaking, how would one retire early without getting hit with withdrawal penalties? As far as I know, most tax-incentivised retirement accounts slap you with penalties for making ...
27
votes
6answers
4k views

“One should save about 15% of their income for retirement.” What assumptions are tacit in that statement?

I read a lot of websites that say, "I've run the numbers, and you should be saving around X% of your income for retirement in order to be safe, and have fruitful golden years." With X% being a number ...
27
votes
6answers
6k views

Ideal net worth by age X? Need comparison references

Is there a website resource that gives suggestions for how much savings or net worth I should have at any given age, based on my education level and salary? I'm in my 30s, have no debt, and have been ...
25
votes
3answers
6k views

If I switch jobs to a lower tax bracket right before I retire, do I save on 401k taxes?

I'm curious about how your withdrawal tax bracket is determined for your 401k Here are the scenarios: A) Let's say I am making $100,000-$200,000 per year for my whole career with a Traditional 401k. ...
25
votes
3answers
6k views

Can I buy Social Security credits?

I have 39 credits and no longer work in the US. (Gave up resident card after 10 years in the US). Retired in Norway. Is there any way I could buy the last credit point I need?
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 ...
24
votes
7answers
7k views

Should I stop contributing to retirement accounts, and instead focus on expanding our real estate investments?

My wife and I are in our later 30s and make about $100,000 per year from salary. We also net about $40,000 from rental properties that we have purchased over the past several years. Our essential ...
23
votes
4answers
2k views

Is it worth saving HSA funds until retirement?

I recently discovered that there is no lifetime limit to contributing to an HSA account - provided that you don't contribute more than the limit per year. Assuming that an individual makes a decent ...
22
votes
2answers
1k views

Is permanent life insurance necessary in retirement?

I have a salesman trying to convince me that permanent is a great option. What I can't wrap my head around is why I would want permanent life insurance in my old age if I have a retirement nest egg. ...
21
votes
3answers
5k views

Laid off at age 54 1/2, am I eligible to withdraw my 401k money without penalty?

I will be turing 55 this year in November. I got laid off 2 weeks ago (April 4, 2016). I worked in New York City and live in NJ. Can I withdraw my 401k without penalty?
21
votes
5answers
2k views

What retirement accounts are available without age based withdrawal penalties?

If you retire early and have money invested in a Roth IRA or a traditional 401k, that money can't be touched without penalty until you're 55/59. (Let's ignore Roth contributions that can technically ...
20
votes
3answers
3k views

Target Funds for a casual investor - benefits/drawbacks

I want to invest in something but don't have much knowledge; I'm considering a target fund based on approximate retirement date. What are the benefits / drawbacks to a casual investor, of investing ...
20
votes
7answers
3k views

Investing in a leveraged index ETF for retirement. Risky?

I'm 23, and in addition to my 401k at work, I have a few thousand saved in an IRA. Right now I have it sitting in Treasurys earning around 3%. Over the past 50 years the S&P has averaged around ...
20
votes
3answers
1k views

Abundance of Cash - What should I do?

There seems to be a glut of information and I don't know where to start. My situation is: No debt/kids Own Home and Vehicles Have a years worth of living expenses in my savings/checking Max out my ...
19
votes
4answers
4k views

Do I need term life insurance at age 57?

I am looking at a term policies for my wife age 56 $250k worth of coverage with an initial cost $957/yr and myself $400k worth of coverage with an initial cost of $1450 /yr. We have about $100k left ...
19
votes
7answers
2k views

Is Real Estate ever a BAD investment? If so, when?

Even in a bad market, over 30 years won't the value of Real Estate always go up? Is it always a sure bet? If not, what should an investor or buyer consider?
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
3answers
9k views

what happens if you don't start collecting social security until you're 75?

My father recently turned 70 and distrusts banks somewhat. He doesn't feel he currently needs the extra income that social security would provide and that if he took the extra money now that that ...
17
votes
6answers
5k views

devastated with our retirement money that we have left

I am 48 and my husband is 54. We have approximately $60,000 left in our retirement accounts. We want to move our money into something so that it will grow. We've been looking at annuities. We've ...
17
votes
3answers
2k views

Why would you not want to rollover a previous employer's 401(k) when changing jobs?

Are there any valid reasons to not rollover a former 401(k) when changing jobs? I have several little ones that I never quite got around to rolling together - with an upcoming job change, should they ...
17
votes
1answer
746 views

Employer time requirements to transfer from paycheck to 401(k)

Are there any rules or requirements as to a time frame of when money is removed from a paycheck and when the money is posted into a retirement account? My current 401(k) receives funds from my ...
17
votes
3answers
985 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
3answers
8k views

Want to retire at 55, but 401(k) starts paying at 59.5 years old

Right now, I am on my late 20's, and I have this plan on retiring at 55 years old, instead of the usual retirement age of 62. For this, I plan to save money enough to cover my expenses from the day of ...
16
votes
3answers
2k views

Pensions, why bother?

Ok this question is going to show my age, but its something I've been thinking about for a while and can't quite figure it out Why bother with a pension? I don't understand, why should I put away £...
16
votes
4answers
3k views

What's are the differences between “defined contribution” and “defined benefit” pension plans?

I've often heard of these two types of pension plans offered by companies: Defined contribution (DC) Defined benefit (DB) What are they and how do they differ? Is one better than the other?
16
votes
1answer
7k views

Is the Social Security retirement benefit calculation based on the last 40 quarters, or overall?

Are Social Security payouts based on the last 40 quarters, or overall earnings? That is: If the last 40 quarters of my working career are lower than these past 40 quarters worth, how does this affect ...
15
votes
6answers
2k views

Is it okay to be married, 30 years old and have no retirement?

I am a 31 year old attorney with a 10 month old baby. I make $130K a year. My husband is also an attorney, and makes approx. $60K a year. WE both do not have any retirement savings or college ...
15
votes
3answers
1k views

Own my home, have no debt, and must start taking RMDs on an Inherited IRA. What should I do?

My father passed away and I have a sizable amount of money in an inherited IRA (about 2 times my yearly salary). I don't have any debt to pay off as I already own my home, auto, no credit card debt, ...
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
2answers
1k views

Will the Windfall Elimination Provision reduce my Social Security?

I have recently changed careers after working for 20+ years outside of education, and now I'm being told I will never be able to access any of the SS dollars I have contributed because now my ...
14
votes
3answers
750 views

Should I “hedge” my IRA portfolio with a life cycle / target date mutual fund?

I'm fully contributing to my Roth IRA every year into a brokerage account that is 100% in mutual funds. I've done basic mutual fund research and picked about 5 different funds that match what would ...
14
votes
1answer
190 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
6answers
2k views

What size “nest egg” should my husband and I have, and by what age?

Of course I know I should have a substantial sum of money that generates its own income, off which my spouse and I will live, when we retire. But what is the right amount to have, or even a range? I'...
12
votes
8answers
2k views

Why is a Roth 401(k) good if there is a long time before retirement?

This article from Fidelity mentions that the longer you have before retirement, the more likely it is that you should choose a Roth 401(k) over a traditional 401(k). This point is mentioned ...
12
votes
5answers
6k views

When do you actually pay taxes on Roth IRA contributions?

I'm in my mid 20s and opened up my first retirement savings this year, in the form of a private Roth IRA (having nothing to do with an employer or paychecks). From the research I did beforehand, I ...