- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Should I be contributing to retirement?
Posted on 6/14/18 at 3:14 pm to Tigerfan56
Posted on 6/14/18 at 3:14 pm to Tigerfan56
quote:
I recently accepted a government position, with a pension that I will be vested in upon 10 years of service.
You're just starting? Sounds like those eggs just got laid. I wouldn't count on those chickens quite yet. What if you leave or get fired in year 9?
As for including an inheritance as part of retirement planning (assuming your parents aren't currently on their death beds), that's probably not a good idea. As you said, medical issues (or some other factors) could wipe that away, or at least severely reduce it.
Look at your income, construct a reasonable budget that you can live within and create a retirement/investment plan that will put you where you want to be at whatever age you want to plug in.
0
Posted on 6/14/18 at 3:18 pm to seawolf06
quote:
You should be maxxing out your Roth IRA every year at a minimum.
This, this, and more of this.
A Roth IRA you can withdraw your contributions at any time tax free. You can put $5500 per person in per year.
There would be absolutely no reason to not contribute to the Roth in your situation.
No, no way in hell I'd rely on parents or the government for retirement.
Posted on 6/14/18 at 3:41 pm to Tigerfan56
People that bet on inheritance are the ones that end up going week to week on social security late in life when they retire in their 70s. I would never bet on a penny of inheritance. Make your own money and determine how your life will go. If you get inheritance, great, spend it how you want. But don’t bet on it, and take pride in knowing that you set yourself up to be successful in life
Posted on 6/14/18 at 4:12 pm to Tigerfan56
quote:
So my calculation is based off 37 years of service and a much higher salary at the end
Check to make sure there isn't a percentage cap in the plan. I know ours is capped at 90%.
Posted on 6/14/18 at 4:28 pm to Tigerfan56
I do estate planning. Want to know how many trusts I've drafted leaving children out or leaving a majority of the money to grandchildren/charity?
This post was edited on 6/14/18 at 4:36 pm
Posted on 6/14/18 at 4:52 pm to TheOcean
All of this lol. Also if dad trades mom in for a newer, more expensive model.
Posted on 6/14/18 at 4:58 pm to iknowmorethanyou
Yeah there are many scenarios where kids get left out of an inheritance. FYI the worst kids are those who expect an inheritance.
Posted on 6/14/18 at 5:10 pm to Tigerfan56
I'm trying to figure out how a dual income household with no kids is tight on cash flow
Guessing it was based on previous assumptions that all failed though
Not sure why you would expect these assumptions not to as well
My advice - each put in 8% into your 401K. That's a pretty healthy amount with both incomes combined. If one of your assumptions doesn't turn out the way you think you've at least got something to fall back on.
I don't know many retired people complaining that they over saved for retirement
Guessing it was based on previous assumptions that all failed though
Not sure why you would expect these assumptions not to as well
My advice - each put in 8% into your 401K. That's a pretty healthy amount with both incomes combined. If one of your assumptions doesn't turn out the way you think you've at least got something to fall back on.
I don't know many retired people complaining that they over saved for retirement
Posted on 6/14/18 at 5:18 pm to Brummy
quote:
It seems you're basing this on a lot of assumptions of future events,
From personal experience, I made this mistake starting around age 30 and didn’t fix it until this year at age 33. When life goes well, it’s easy to assume that it will always go well - that every hypothetical will come to fruition - that every “I’m pretty sure this vision will come true” comes true.
I lived a very very good life. Privileged if you will until at age 30, I started making decisions based on assumptions.
It set me back big time.
Forget the inheritance and if it does come in, try to honor your parents’ hard work by using the money wisely at that time. The pension sounds grand but you should still put away money just in case. What if you hate the job? Being miserable in a job will ruin your life quickly.
Posted on 6/14/18 at 6:59 pm to Tigerfan56
You didn't mention what government you'll be working for. Is this federal or state/local? Lots of people in Detroit got screwed when their pensions didn't pay what they expected. Back in the early 90's there were lots of pensioners in the old USSR who died in poverty too. Pensions often work out but sometimes do not.
When making plans it's usually a good idea to assume something will happen along the way to upset things. You have no idea what it will be ... but it'll happen. I know a woman here in DC who lost her husband when she was pregnant with their second child in a random traffic accident.
This isn't to say you're doomed - just be ready when the world throws you hard uppercut so you can dodge it or at least get back up. Work hard, increase your income and save like crazy while young. If everything goes well you can spend time enjoying your "golden years".
When making plans it's usually a good idea to assume something will happen along the way to upset things. You have no idea what it will be ... but it'll happen. I know a woman here in DC who lost her husband when she was pregnant with their second child in a random traffic accident.
This isn't to say you're doomed - just be ready when the world throws you hard uppercut so you can dodge it or at least get back up. Work hard, increase your income and save like crazy while young. If everything goes well you can spend time enjoying your "golden years".
Posted on 6/14/18 at 7:17 pm to southernelite
quote:
but this is the reason we keep having raise taxes to fund these ridiculous pensions. What the frick.
Agree, nothing against the OP, but pensions need to go away immediately and be replaced at all levels of govt with a 401k like plan. Taxpayers are being completely overrun with govt pension issues.
Posted on 6/14/18 at 7:37 pm to kywildcatfanone
quote:
Agree, nothing against the OP, but pensions need to go away immediately and be replaced at all levels of govt with a 401k like plan. Taxpayers are being completely overrun with govt pension issues.
Hey, I agree completely. I’m not virtuous enough to turn it down or vote to end it if I’m vested into it, but I’m against it in principle
This post was edited on 6/14/18 at 7:40 pm
Posted on 6/14/18 at 7:53 pm to kywildcatfanone
quote:
pensions need to go away immediately and be replaced at all levels of govt with a 401k like plan
That is essentially the Thrift Savings Plan offered to federal employees.
Posted on 6/15/18 at 5:56 am to Tigerfan56
I was 5yrs into my state job with a similar retirement plan. Then the state closed that facility.
Hard to know what could happen 30yrs from now.
Hard to know what could happen 30yrs from now.
Posted on 6/15/18 at 7:13 am to Styxion
quote:
Damn, I didn't realize federal was that low.
There is a lot of misinformation about Federal government pensions. Yes, the benefits are great. Yes, there is a lot of time off. And, yes, there is a pension (which most private employers no longer have), funded by the taxpayers.
But, it is not the 2.5%, retire at full salary in 40 years type pension like in the '60s and '70s. Since the mid 1980s, they converted the CSRS over to FERS. They're doing the same thing now to military pensions. FERS is 1% per year of creditable service (instead of 2.5%), plus you get a 401k-style matching program (called TSP). It is nice, but it only works if you participate, at least up to the match. And, while CSRS didn't get social security, they also didn't pay the tax. FERS employees do both.
Posted on 6/15/18 at 7:33 pm to Ace Midnight
What Ace said.
The older federal pensions were a dream deal, the new one is still okay but much more meh.
The older federal pensions were a dream deal, the new one is still okay but much more meh.
Posted on 6/16/18 at 7:29 pm to foshizzle
Will you adopt me
Posted on 6/16/18 at 11:38 pm to Tigerfan56
Can you live comfortably on $90k in 37 yrs?
37 years ago $32k would be woeth $90k today. Could you live comfortably on $32k today?
37 years ago $32k would be woeth $90k today. Could you live comfortably on $32k today?
Posted on 6/17/18 at 7:32 am to Tigerfan56
I do estate planning for HNW clients and our group tells every client that an inheritance is not guaranteed.
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News