LA pension or 401(k)? | TigerDroppings.com

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The Hamburglar
LSU Fan
McDonaldland
Member since Jan 2005
3059 posts

LA pension or 401(k)?



pension formula is:
(average salary of highest 5 years)X 2.5% X(# years worked)

OR

personal retirement where employer contributes 5.625% to 401k.

In both cases, I contribute 8%.

What would you do at 30 years old?







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MikeD
LSU Fan
Baton Rouge
Member since Jan 2004
1491 posts

re: LA pension or 401(k)?


Do you think the pension will be around when you retire? Or do you think that there will be major reform between now and then?






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LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
736 posts

re: LA pension or 401(k)?


What's vested dates for each? Payout and actuarial adjustments for pension?

Do you expect to stay there long term (ie retire there)?






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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
23203 posts

re: LA pension or 401(k)?


quote:


pension formula is:
(average salary of highest 5 years)X 2.5% X(# years worked)


do you plan to be there 20 years?






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TDsngumbo
LSU Fan
Member since Oct 2011
5580 posts

re: LA pension or 401(k)?


I work for the state also and I went with the 401k. The pension is great if you think you will work there forever or if you expect the pension to actually still be there when you retire.
I don't trust the economy or the state government to stay off of my pension retirement so I switched to the 401k shortly after my start date. I'd rather trust the market over the next 30-35 years.






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