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Help a brother out with some retirement planning advice
Posted on 3/25/23 at 2:56 pm
Posted on 3/25/23 at 2:56 pm
So, I’m looking at jumping to a position with different company. Same job but much better environment/atmosphere better opportunities for advancement etc.
Pay will be slightly better ($5 an hour more) but I’ll be giving up 2% 401k match and new company has no annuity/pension benefit.
My current employer offers 8% match and annuity formula below.
11% of highest 5 year average X years of service before age 60. 32 years of service at age 55 would put me at around $420k
If I make the jump the idea is to apply the extra earnings to maxing out a Roth IRA for the next 28 years along with maxing 401k every year. How would this compare to the annuity at retirement age
Pay will be slightly better ($5 an hour more) but I’ll be giving up 2% 401k match and new company has no annuity/pension benefit.
My current employer offers 8% match and annuity formula below.
11% of highest 5 year average X years of service before age 60. 32 years of service at age 55 would put me at around $420k
If I make the jump the idea is to apply the extra earnings to maxing out a Roth IRA for the next 28 years along with maxing 401k every year. How would this compare to the annuity at retirement age
This post was edited on 3/25/23 at 3:00 pm
2
Posted on 3/25/23 at 3:24 pm to ThreauxDown
Does match vest immediately at both?
The $22,500 contribution limit or max match? 6%
If it isn't government work wouldn't be shocked if this was frozen at some point
quote:
maxing 401k every year
The $22,500 contribution limit or max match? 6%
quote:
11% of highest 5 year average X years of service before age 60. 32 years of service at age 55 would put me at around $420k
If it isn't government work wouldn't be shocked if this was frozen at some point
Posted on 3/25/23 at 6:24 pm to ThreauxDown
My 2 cents (pun intended):
Find work happiness. Then max the retirement opportunity from within that context. Time and your happiness should be highest priority. Frame decision on your opportunity to thrive, and money will follow, sure as sun rising in east.
Time is the most precious resource. Can get more money and stuff, but cannot get more time.
So, once you land best position for you to thrive over long haul, max the retirement in the position. Use prioritization posted on this board many times (401k up to company match, then Roth, etc, assuming emergency fund in place, etc).
Good luck.
Find work happiness. Then max the retirement opportunity from within that context. Time and your happiness should be highest priority. Frame decision on your opportunity to thrive, and money will follow, sure as sun rising in east.
Time is the most precious resource. Can get more money and stuff, but cannot get more time.
So, once you land best position for you to thrive over long haul, max the retirement in the position. Use prioritization posted on this board many times (401k up to company match, then Roth, etc, assuming emergency fund in place, etc).
Good luck.
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