OT: Retirement ?

I've been retired for 13 years and have a pension which is 60% of my last 3 year's average salary. If my wife pre-decreases me it'll jump to 79%. If I beat her to the finish line, she'll continue to get about 80% of what I'm getting now.
I worked a part time job for 12 years after retiring (100 days per year @$500 per day). I also have a 403(b) like a 401k but have blown most of that on strippers.

Anyone under 50 who doesn't have a 401k or a healthy Keough is crazy. I know strippers in their 30's who have well over 6 figures invested which is only going to grow for another 30 years.

Yeah – but 401ks can be unreliable with the turns of the market – not a guaranteed payment like a pension – and w/ today's longevity; issues w/ outliving one's money is a real concern.

Unless i strike it rich im just assume that I'm fucked

Jay age 35

When I retired I took my pension as a lump sum and rolled it into my IRA. The money I had put into my IRA over the years was much greater than the pension amount. I have even more money in investments, which I haven't had to touch yet. Social security is another source of monthly income, but it's small compared to my IRA distributions.

My monthly after-tax disposable income is more than what is was before I retired. I am no longer making IRA contributions or paying Social Security tax. If it weren't for strippers and blow, I don't know what I would do with my money.

I'm under 50 and had a partial pension but it was frozen several years ago. Then it got rolled over into my 401k funds when another company took over. It seemed like a tragedy having some 20k frozen for several years not making jack. My options in my 401k are limited but at least I can invest it in company stock or an index fund. I think 401k rules suck because I would prefer to roll it all over into my brokerage account and invest in whatever I want.
As is, I either have to quit my job or wait most of my life working for such a company until I'm close to retirement.

That is before I can roll the money over into a brokerage account so that I can invest in what I want. If you save 5 or 6% all your life but it's trapped behind 401k rules you feel like most of your money is trapped. We're all screwed. Now the democrats are looking at the trillions of dollars people have saved in retirement accounts and scheming up ways to tax it or confiscate it. One way Hillary would like to confiscate everyone's money is simply apply a 1% tax every time you buy and sell something with your lifetime savings. That might be like saving all your life for a retirement, then the government takes away 50,000 in a single year if you saved up a lot and made only 10 trades. Now if you made like 30 trades over say extra years, they could take away 10% of your savings every year. We're all screwed. It looks like the Clinton's made a deal with Trump to take over and screw us all.

Got hurt in military so I've been retired since my early 20's. Been raising kids and now most of them are grown so I'm looking for places to invest my money now. Y'all got any tips or info let me know.

I'm a young guy early 20s and work for a large company that offers a 401k. I haven't signed up for it yet but plan to do so next year.

The reason I immediately signed up for the company 401k is because they matched funds on the first few percent. If you don't sign up and contribute to get the matching funds, it's like saying, ok give me a pay cut. The money you contribute reduces your taxes come tax time too. My 401k is 100% cash right now. Company stock is down over 20% this year. I expect the whole stock market to possibly tumble down to 1600ish for the SP500 but could be wrong for 2016. The experts say if you plan to invest for the long term, some type of automatic lifetime retirement plan is the way to go. I think that is good for most people. I think I can beat that return though. I'm also saving in a Roth IRA and a taxable account instead of maxing out my 401k savings. I know someone saving the max 17% per year but I think he makes a lot more than me. If I can't spend the money on topless strippers though, my savings will go up faster. My health will likely go downhill faster because I might get depressed and then I will die early. I will have saved for nothing. I still have hope the crappy Strip club situation will improve.

I have both a 401K and a pension plan. The pension, which is called a Defined Benefit Plan where I work, is currently funded at 6% of my base salary, and is invested in some sort of investment that is guaranteed a fixed rate of growth. The calculation on how much I'll make per year is a bit strange. If I leave the company before I retire it's based entirely on how much money I have in the account. If I retire with the company, then it's based on the amount of money in the account plus a percentage of the average of my last 4 years worth of salary and the number of years I worked for the company. The rate also grows at a very small percentage each year in retirement.

The company added a 401K many years before I hired on, and there has been talk every year about doing away with the 401K for new hires, but every year it has stayed. I suspect it will soon be eliminated. The company matched up to 3% of my salary and bonus each year. I also have an RIA I rolled over from my previous company which has better funds than my crappy 401k funds, as well as a Roth IRA.

When I retire, assuming the economy doesn't tank too many times in the next 15 years, My last calculations using several retirement calculators as well as my own calculations. I'll end up with about 118 percent of my base salary, which comes 69 percent from my IRA's and 401K. 23 percent Social Security and 8 percent pension.

While I am at it I must give you a warning on retirement calculators, especially those from companies whose business is to sell retirement plans, and get you to contribute the highest amount, so they can make money off what you invest. They are designed to sell individual RIA's and base their calculations to way under estimate your retirement savings. I did several where the numbers came out I would only have from 65 to 75 percent of my needed money for retirement.

I was very suspicious, since it didn't correspond to any of my calculations. So I looked at the fine print at each step where I entered the numbers, and all the "further information links," and almost every time the rate of return calculations were far lower than the suggested average of 7 percent to use. Four to Five percent seemed to be very common percentage range to use, which can be a significant reduction in earnings.

Several had over simplified calculations that amounted to nothing more than simple interest calculations, and not compounding. Once you got to their suggested contribution rate, the correct calculations would leave you far too much money remaining in the account once you died.

Using their suggested contribution amount, the common amount left over once a person making 100,000 a year, which I used to make the calculation easier was 1.2 million dollars at age 92. Enough to over 100. Unless you are planning on leaving your retirement money to your children who are likely to also be retired by then, that's way too much to have at 92, assuming you even live that long.

Papi, most 401ks are offering guaranteed options as an investment similar to how a pension behaves. Of course like the movie Tommy Boy, what they are selling you is a guaranteed piece of crap. If you know the basics of asset allocation then regardless of market conditions, over a long period of time investing without the guaranteed like annuities inside a 401k and just using basic asset allocation will bet you better returns, way better. Guarantees, even when coupled with a regular pension are very costly. U notice insurance companies almost never go bankrupt? It's because they make so much money, and pensions and annuities are backing those guarantees. The costs out weigh the benefits, but most people are too stupid to understand basic market cycles and asset allocation so they become a sucker for the guarantee game.

I have a 401k, no pension. Still has some money left in it despite the divorce. I won't mention numbers since that makes people uncomfortable but I am planning to retire early, before 60. Just gotta make sure that I have enough stripper funds to last me in retirement.

I'm in my mid-30's. I have IRA, 401k and a pension. I contribute the maximum amount to the IRA and 401k every year. Altogether they have 200K right now. I don't expect Social Security to be around when I retire in 30 years.

I was receiving a monthly retirement from the company I retired from at 55. I was offered a lump sum amount last year and took it. With that amount never being touched (well I did pay off my mortgage to save thousand in insurance premiums) it is doing quite well in a brokerage managed account. I went back to working (boredom) a little over 6 years ago and that 401K will be rolled over to an IRA soon. Drawing SS and my SO starts this month, but don't touch that money. Goes into another investment account.

All in all, We should be just fine when I plan to retire again at 70. May be sooner since I am getting tired of work BS!!!

"Live fast, die young" is my new motto for 2016 and beyond. No retirement savings since I don't have a family of my own but I do keep a large emergency fund. I hope to pass away before I am eligible for Social Security...assuming of course if it is still around.

401k, IRA, Roth IRA, current company still has cash balance pension but i doubt i will stay with company long enough to be vested. Early 30's.

Mostly stocks some mutual funds, I'm getting closer to thinking about how to retire, but I'm having second thoughts as to how I will spend my time in retirement. Most of my major stuff is paid off or funded not really too worried about finances, I am much more concerned with what will I do, when I no longer have something that I need to do.

By retirement age, people already own their home and cars. What other big expenses are there? The only thing I can think of are medical insurance and strippers.

I live a modest life. Don't care about material things. It would be nice to have a million dollars by the time retirement rolls around, but I don't think it's necessary if you don't have an extravagant lifestyle to maintain. As long as I don't have a CF or DS when I'm retired, I'll be OK.

Great comments Great comments – appreciate all your thoughts and input.

Sounds like Aaron H is off to a good start. Assuming a ~6-7% average return, portfolio should double in value every 10-12 years. Even if he doesn't make any more contributions, he will probably have $1.2-$1.6M when he retires in 30 years. If he continues to contribute the max for the next 30 years, he'll probably have a portfolio north of $5M waiting for him in 30 years, especially if company matches some of his contributions.

I'm 54. I don't have a 401k, an IRA, or a pension. The franchise I work for had a 401k for a little while, but when the economy tanked, they shut it down.

Yeah, I'm gonna be delivering pizzas until the day I day.

Should be "until the day I die."

Urgh.

Phantom, if you can find a governmental job for the next 12 years most of those agencies have a pension. Albeit if you worked only 12 years a common state/governmental agency with a pension would only replace 20-25% of your salary, it would go a little my ways to fill in the gap since social security will likely replace 30-35% of your income.

These figures are for those who make average incomes, but at your age retirement doesn't have to be a pipe dream. Living off of 50-60% of your income is easily doable if you have no debt, and since most people are living longer you could retire full time in your late 60's and transition to part time workfe your late 60's until your mid 70's.

Of course many people have a fear of planning and just figure that dying will be their retirement plan, but you don't have to go that route if you choose to.

Or stay with your current job and max out the $24k into your 401k and $6500 into your ROTH IRA. Anyone who makes close to $85-$100k annually should be able to manage those contributions since the tax breaks into your 401k only amount to about $16k in lost gross income. Of course this would put a cringe into your strip club hobbies, but go to the dive bars and drink draft beer, you'll be ok.

I'm lucky in that I actually get a 50% match on 401k contributions.

Meat, I'm lucky to clear $20k a year. Dropping $30k+ into a couple retirement funds, yeah, it ain't happening any time soon. I really should try to find a grown-up job though, but between Dad's dementia and helping him out with everything from things around the house to legal and financial matters that have cropped up since Mom's death back in August, shit, I feel like I'm pulling overtime with all that by itself.

Phantom dude u can relate somewhat to the dimentia stuff your dad is going through. Best wishes to finding strength to carry through those challenges.

If your dropping $30k annually into a retirement fund there is no doubt you will have the means for retiring in your late 60s. The $30 k multiplied over 23 years can come close to $500k which should net you about $2,000 month income. Couple that with about $2000+ in social security payments should get u $4,000 monthly income with hopefully enough health left for you to deliver pizzas only a couple times a week. $4k monthly is good income in the more isolated parts of the country, but maybe your family should be close by if they aren't up to visiting u in a rural area.

We should start a gofundme account for Phantom so he can get out to the clubs once in a while for a break from real life! That way it won't eat into his retirement planning. TUSCL members could spring for a $500- $1000 donation for a night out with his ATF if each person contributed only $25-$50? It's the thought that counts.

^^^ should be $30 k multiplied by 12 years= close to $500k (With growth). Damn fat fingers help me look stupid. I sometimes feel like Juice after reading my comments.

Thanks, Meat, much appreciated, but like I said, I don't make anywhere near $30k. I only make about $20k in my dead-end, minimum-wage job. Retirement is just not an option.

It depends on what you do and how much you can save. My job offers 401k with a 3% match and a pension (but it will go away soon, I'm sure). I personally contribute to the max (18K) per year, and this is pre-tax money. I also contribution additional $5K or $5500 (also the max) to my IRA. So basically I save $23K per year. This is really all I can do. Anything else above and beyond is just personal investment that is not strictly retirement. So this is why I am happy with my hobby with strippers~~~

Obviously, I am not going to tell anyone how to live their lives. But if you make a decent living (close to 100K), you really should be saving the legal limit (23K) for your retirement. Then you should blow the rest on whatever and whomever you fancy.

What is a pension? LOL

Seriously, vast majority of Americans are not saving at an adequate rate. Pension plans beat 401(k) plans for security -- if adequately funded (see Illinois state retirement system for future nightmare).

If under age 40, make Roth contributions and invest aggressively. Get the full company 401(k) match no matter your age or station in life. Save at least 10% of your pay from age 21 to 30, before the wife and kids suck up everything laying around. Oh yeah, then insist on a pre-nup.

Lastly, for everyone under 40, figure $1,000,000 minimum. Billionaires are the new Millionaires. $1,000,000 will not seem like a lot in 25 years.

“... While I am at it I must give you a warning on retirement calculators, especially those from companies whose business is to sell retirement plans, and get you to contribute the highest amount, so they can make money off what you invest. They are designed to sell individual RIA's and base their calculations to way under estimate your retirement savings ...”

What retirement calculator(s) have you found that are good?

They're all pretty basic. Finra website is the least bias. The online websites generally all will allow you to put in your own assumptions for rate or return/contributions etc. the time value of money is quite the objective tool, and that's what drives most online calculators. They will tend to frame your projections that don't take into account social security and pension income or outside sources of income.