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.

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10
votes
2answers
1k views

529 vs IRA for kids education and future scholarship

I have young kids going in preschool. I have already started investing in 529. However, many of my friends mention that if I invest single penny in 529 plan for my kids, they will miss out on any ...
2
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3answers
212 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
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1answer
203 views

Saving question - I do not know where to start

I just finished my degree and I have been working in Malaysia for 3 months. Let's say that every month I have a salary of $2,550 and my expenses are: $300 taxes $500 to parent $300 toward ...
28
votes
8answers
6k views

50% portfolio in single stock, JPM - appropriate for 80 year old?

I've recently taken a look at my 80-year old mother's finances, run by a money manager at Morgan-Stanley. Half of her $3.5M portfolio is in a single stock, namely JPM = J.P. Morgan. This seems to ...
1
vote
1answer
100 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
3answers
105 views

What are some long term and low risk investment options for someone closer to retirement?

I started late. I’m 50 and have about $200k in savings, no debt and a small mortgage with $200k/year in salary. I have $300k in 401k. I’d like to put that $200k somewhere other than the bank. I don't ...
0
votes
2answers
196 views

401k Taxes (USA) — Traditional vs Roth (not IRA)

Good afternoon, Looking for the 401k tax pros out there. I have four primary 401k tax related questions: 1) Income Tax Bracket at Retirement: When retiring and "cashing out" on a trad 401k: I ...
3
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2answers
198 views

If I'm 25 and work 10 years to cover the 40 credits required to qualify for Social Security, will my payments be indexed to inflation when I retire?

If I'm 25 and work for the next 10 years to cover the 40 credits required to qualify for Social Security, will my payments be indexed to inflation when I retire?
34
votes
3answers
9k views

How safe is the 4% rule if U.S. returns trend towards World returns?

I keep hearing about the 4% rule. I know it's based on historic returns, but aren't those returns based on U.S. stocks, at a time when the U.S. was ascending to the peak of "world superpower" ...
0
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0answers
170 views

Am I on the right track? Feedback welcome!

Here's my situation: 43 y/o, married w/ two kids under 10. I'm in a defined benefit program and I have a formula where I can retire at 60 with 2% of my highest salary times the number of service ...
0
votes
1answer
218 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 ...
2
votes
3answers
229 views

Are the fees on this 401k plan too much?

My employer uses a relatively new company called "Human Interest" for our 401(k)s. I have 401(k) accounts with Fidelity and TransAmerica from former employers, and I'm trying to decide which is best. ...
1
vote
2answers
111 views

Is the math wrong on these future value and draw-down calculations?

Let's say I plan on retiring in 10 years, have some IRAs (401(k) rollovers), a conservatively invested taxable account and plan on contributing 15% to my 401(k) until I retire. I'm using round ...
1
vote
2answers
95 views

Traditional IRA with No Deduction Allowed

Martha is a W-2 employee, lives in the U.S., and works for a company that doesn't offer a 401(k). She is maxing out her traditional IRA every year 2010-2019 but she is not qualified to take any ...
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 ...
3
votes
3answers
160 views

alternative to reverse/Balloon mortgage

Hypothetically, suppose a person who is close to retirement, who has comfortable savings that will last his/her lifetime( if need not to pay monthly mortgage) and is close to retirement and has 2 or 3 ...
1
vote
3answers
252 views

Reasons to invest in 401k vs pay off loan in 1 year?

I have ~$70k across 401k and Roth IRA. I have federal student loan at $17k with 3.8%. Thus, my NW is $53k. If I choose to invest $19k into my 401k and assume the average rate of return of 7%, my 401k ...
0
votes
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 ...
6
votes
1answer
119 views

Is selling in IRA and then buying similar stock in regular account a wash sale?

Suppose I buy 10 shares of XXXX at $300 in my IRA account on Jan 2nd for total $3,007. XXXX drops to $250 on Jan 10th and I then buy 10 shares in my taxable account for a cost of $2,507. On Jan ...
6
votes
4answers
596 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 ...
3
votes
3answers
285 views

How to maximize my retirement money?

I am 69 years old, have $200,000 in a savings account, and $1000 a month in social Security. I have $30,000 in car debt. I rent, but really would like to own some type of housing. Really worried about ...
2
votes
2answers
123 views

What compounding frequency should I choose for this retirement calculator if I invest not in bonds, but in S&P500

I am trying to use a retirement savings/investment calculator using this: https://www.getsmarteraboutmoney.ca/calculators/compound-interest-calculator/ I chose initial investment of $1500, monthly ...
2
votes
2answers
3k views

Is this claim fraudulent: “I Can't Believe This $16,728 Social Security Bonus Was So Easy”? [duplicate]

When I browse the Motley Fool Website, I see an advertisement that says "I Can't Believe This $16,728 Social Security Bonus Was So Easy", and it seems a fraud. Does any one on this forum have ...
3
votes
1answer
111 views

Medicare and living in Mexico

If a US citizen moves to Mexico, can he/she live in a town near the border, maintain his/her coverage of Medicare and come to the US for medical care? He/she would want his medical care to be paid for ...
36
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 ...
2
votes
4answers
365 views

What to do w/ extra money in bank account?

I'm privileged/blessed. I'm 38, I have a healthy emergency fund, I max out my IRAs (mine and my wife's), and I am making a good bit of money above that every year now. What should I do with that extra ...
4
votes
1answer
535 views

Investing in a Roth IRA with a Personal Loan?

Okay this might be a dumb question but here it goes. Does it at all make sense to invest in a Roth IRA contributing the max by taking out a loan? So say I take out a $6k loan at the beginning of the ...
1
vote
2answers
83 views

Put savings in Shares or Superannuation

I am 25 and live in Australia. As such my employer must pay 9.5% of my wage into a superannuation retirement account. I have and continue to save and currently have 18k in a savings account earning ...
10
votes
1answer
878 views

Are UK pensions taxed twice?

I, like many, have a workplace pension. I pay taxes through PAYE and file a self assessment covering all other income. My understanding is that your personal pension pot is 25% tax free then you pay ...
5
votes
2answers
279 views

When is paying into a UK pension bad tax planning? (LTA)

UK Pensions are great for the tax breaks that they give as you pay into them (up to 45%), and as the pension generates value, but if you exceed the lifetime allowance (LTA = £1,055,000 in 2019-2020) ...
1
vote
1answer
289 views

How can a stay-at-home parent save for retirement?

With my wife transitioning to a stay-at-home mom role, how can we save so she can retire? She won’t be able to contribute to her 401k and I don’t think we qualify for a Roth IRA based on my income. ...
4
votes
4answers
596 views

Those retiring early - what other steps can I take to ensure retirement at 50?

I want to retire early (am 40 - want to retire by 50). For those who have done it in and around that time (without inheriting a ton of money from someone) what steps or things can I do to help make ...
1
vote
0answers
52 views

How much money do I lose when I move from defined benefit pension plan to a hybrid pension plan

I am moving from a company with a defined benefit pension plan to one with a hybrid pension plan(DB + DC). I understand that the defined benefit pension plan uses a set formula to calculate the ...
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 ...
1
vote
2answers
138 views

Formula for retirement withdrawal amount same as principal decreases

I created a retirement calculator The idea is if you save enough you can so when you withdraw say 4% you don't eat too much into your savings. But based on my calculation 4% of 500000 is $20k but ...
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 ...
2
votes
0answers
84 views

Retirement Conversion to whole life insurance or not

Both my husband and I had term life insurance policies that were convertible at age 60 to whole life. I am 67 and converted mine years ago. My younger husband is reaching the deadline date for ...
4
votes
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 ...
2
votes
0answers
29 views

Residential requirement for Canadian living abroad to collect pensions?

I have been told by numerous individuals that one is required to return to Canada for a certain period of time, whilst living abroad, in order to continue to collect my Senior benefits from the ...
1
vote
1answer
33 views

Adding nondeductible 1099-R reduces refund

I'm using TurboTax to do my taxes for FY2018. I make nondeductible (after-tax) contributions to my Traditional IRA, and once the funds settle (but before investing the funds), I convert the entire ...
0
votes
1answer
184 views

401(k) losing money, considering withdrawal to pay off mortgage

I left my job 13 years ago with $80,000 in a 401(k) plan and $500 a month pension. Two years ago the company told me that I had to get money for pension. I had already lost $45,000 of my 401(k) due ...
2
votes
4answers
504 views

Buy 2nd house vs investing?

I've an interesting dilemma that will occur in a few years. My wife and I are currently overpaying our mortgage and will be mortgage free by the age of 35. We are also already putting away some money ...
3
votes
3answers
2k views

Vanguard Target Year retirement funds track record

Some personal finance "gurus" recommend funds with a track record of at least 10 years. Both my current and previous employer default to Vanguard target year retirement funds. These funds from 2015 ...
2
votes
1answer
209 views

401k Statistics

This article claims: In fact, the average 401(k) balance at Fidelity — which holds 16.2 million 401(k) accounts and is consistently ranked as the largest defined contribution record-keeper — ...
1
vote
2answers
113 views

What is the reference salary for retirement savings by age, defined as a multiplier of salary?

Many retirement articles list how much you should have saved by age, in multiples of your salary. However, they don't explicitly state whether they are trying to base the multiple off your original ...
4
votes
1answer
110 views

Social Security disability 10 year rule

I am 62 years old and have worked all my life. In 2007 I started teaching high school to give back to my community. Now I discover that since I have worked for a school district and made no Social ...
5
votes
4answers
956 views

What are the advantages of a tax deferred investment account?

So, I suspect I am missing something huge about this. But I notice there is a lot of talk about retirement accounts recently such as 401-Ks and IRAs. I understand these come in two flavors, ...
2
votes
2answers
121 views

Vanguard Total Stock Market vs Vanguard STAR for retirment

I'm about 17 and my vanguard roth ira is now ready for an investment. I was wondering which of the above two funds would be suited as a retirement fund, or if there is any significant difference at ...
0
votes
1answer
142 views

AIG Single Premium Deferred Fixed Annuity

I would very much appreciate if someone could explain the "investment" benefits of a Single Premium Deferred Fixed Annuity. I know NOTHING about this type of investment plan, which my financial ...
5
votes
1answer
296 views

How stable is my retirement plan?

I am in Ontario, Canada as stated in previous posts. I am 23 and have $20 000 in investments after working at my first job for 10 months. My job pays me $42 000/year before taxes ($33 000/year after ...