Do you have a retirement plan in place?

[16kOrBust]

Having started my new job this week, I've spent a lot of time lately putting together a budget and doing out possible financial plans to see what my best options are for ridding myself of remaining debt and enjoying my life while still saving/investing enough for retirement (I'm currently 26 years old). After seeing the numbers and knowing the kind of money I'm now making versus what other people I know are making, I can only imagine that the majority of people out there are not thinking much about retirement (especially around my age).

I look at how people live and the kind of spending they do and debt they have and I don't see how it's really possible for most people to be putting away any significant retirement savings. I won't have a pension and I'm not counting on any sort of social security, so my only real option is to rely on myself and whatever company-sponsored plans are offered to put away enough. I'm now making what I consider a mediocre income for a single person my age with little debt and a very inexpensive living situation, plus my company has a generous profit sharing plan, but I still have a hard time finding a balance between covering my expenses, having a little spending/fun money, and putting away enough so that I might actually be able to retire in my early/mid 60's when I'll probably only have about 20 years or less to live.

Anyways, I thought I'd post up this poll. Feel free to post any relevant info such as age, retirement savings experience, etc if you feel comfortable with it. I enjoy financial conversations and do a lot of reading on the subject so I'm always looking for more info and experiences.

 

[66speed]

City pension. And a nice one at that.

 

[HYBRED]

My company used to offer a pension in addition to a 401k, but last year they took away the pension for people with less than 5 years experience and instead upped their 401k matching. Now for my 5%, they match 9%.

 

[16kOrBust]

Whoops, I meant to post this in Road Side. Can a mod move for me, please?
I also should have probably distinguished between company pension and company 401k (or similar) in the options. Definitely a big difference there.

 

[harry gilbert]

Been setting aside savings for 40+ years. Semi-retired, now. Gonna move to Mexico and let the government take care of me with it's generous social welfare plan. Oh, wait, that's why all the Mexicans are moving here....

Hey, you young suckas, better save your pennies, 'cause there ain't gonna be any "social security" when YOU retire. That Ponzi scheme has been robbed by the politicians and is going belly up.

 

[5.0 Ford Power]

I'm 24 and putting away about 10% in a 401k.

 

[WP64]

My company used to offer a pension in addition to a 401k, but last year they took away the pension for people with less than 5 years experience and instead upped their 401k matching. Now for my 5%, they match 9%.

That isn't too bad of a compormise, I know a lot of people who's pensions were frozen and/or their employer stopped their 401K matching altogether. Of course, you, knowing where I reside, will understand these stories are more common here then where you live...

OP, I stopped putting money into retirement plans about 15 years ago when I got married, my wife and I chose to instead invest in rental property, both redisental and commerical; if, or maybe when, you have the means, an investment in property that can generate income will far out perform all but the most agressive retirement plans over the long haul. I couldn't convince my wife of this 100%, so she still invests in her companies 401K, never hurts to have both I suppose.

 

[VirtualSVT]

I was told that you never trust anyone with your money for your future. I have a company 401K that I dumped money into.

I also opened a Roth IRA at 18 and max out my yearly contributions.

When I hit 59 and a half I'll be doing very well.

 

[DaleM]

My plan is to fish.

 

[xXGadfly09Xx]

19 here out 12.5% of my income into bonds
Havent actually started work (just summer jobs) but it isnt too early to think about retireing right?

 

[mustangsf4life]

I have a county retirement plan in place. I'm almost 24 with 3 1/2 years on the job. Plus i have a 457 plan in place through ING which i put so much a check away in a separate account. Ill be pretty well off as long as my body can hold up to the job and not get a severe injury or so on after 30 years.

 

[PowerWheels]

Always pay yourself first, been doing it for 20 years and it works. Sure the budget gets tight sometimes, but don't touch savings, you will regret it and never reach your goals that way.

You may not reach them investing anyway, markets are unpredictable and governments are run by a good percentage of traitors IMO, the source of most of the problems.

Also make sure you diversify outside the USA significantly, long term the dollar will decline against real assets due to negligence by the fed . Don't kid yourself that inflation isn't occurring as the CPI reflects.

Putting money in a Roth is good for tax diversification, we all know what Obama and Team Traitor wants to do with taxes. I'm sure bailouts of states like CA have already been discussed, wonder who will pay for that mess?

 

[Rubix Cube]

I have a fixed amount of money direct deposited into my savings account and the rest into my checking each paycheck. That way I don't miss it, it builds interest and I never have to worry about it losing money. I also just bought a house (at 26) by myself in one of the most expensive states to live (Kali) at a great price. I plan to buy at least another one while the market is depressed, rent this one out, and with the low mortgage I have that should be very easy, then when the market comes back around (assuming it ever does) sell both and buy something for cash in a part of the country with a lower cost of real estate. I hope all of this can come together in the next ten or so years. If it works out that should put me in my mid to late thirties without a mortgage. Then hopefully I can find a decent job wherever I end up and just stock away for retirement and enjoy life.

 

[PowerWheels]

Been setting aside savings for 40+ years. Semi-retired, now. Gonna move to Mexico and let the government take care of me with it's generous social welfare plan. Oh, wait, that's why all the Mexicans are moving here....

Hey, you young suckas, better save your pennies, 'cause there ain't gonna be any "social security" when YOU retire. That Ponzi scheme has been robbed by the politicians and is going belly up.

One thing I've learned, saving 10% is not enough if the markets don't cooperate as they have done over the past 10 or more years. Save 20% to make sure you will have enough. Yes I know, it seems impossible for most, but that's reality. If you arn't saving that you are at risk of working for a long, long time.

Count on:
Higher taxes
Anemic growth
No SS
Increased retirement ages
Inflation

Good Luck

 

[PowerWheels]

I have a fixed amount of money direct deposited into my savings account and the rest into my checking each paycheck. That way I don't miss it, it builds interest and I never have to worry about it losing money. I also just bought a house (at 26) by myself in one of the most expensive states to live (Kali) at a great price. I plan to buy at least another one while the market is depressed, rent this one out, and with the low mortgage I have that should be very easy, then when the market comes back around (assuming it ever does) sell both and buy something for cash in a part of the country with a lower cost of real estate. I hope all of this can come together in the next ten or so years. If it works out that should put me in my mid to late thirties without a mortgage. Then hopefully I can find a decent job wherever I end up and just stock away for retirement and enjoy life.

If it's in a savings account you did lose money. Inflation ate some of it at the current savings rates.

I like the rental plan if you are cut out to do that.

 

[xtremeskime21]

Pension and Individual plan. Hope to live comfortable after I retire.....in 24 yrs..

 

[Rubix Cube]

If it's in a savings account you did lose money. Inflation ate some of it at the current savings rates.

I like the rental plan if you are cut out to do that.

You have a great point but I am not enough of a gambler to do much else with it and I also like having it at my fingertips in case I ever did need it.

 

[Sniperdog]

Get a Roth ira tomorrow

with that said, I have a 401k (company stopped matching after 9-11) but, I max it out every yr, we also have life ins that double as retirement plans, not sure if its whole or life :shrug:, plus a Roth that we (me and wife) also max out each yr,., I am not a finance guru, but my oldest daughter just graduated with a degree in finance, and says we are on the right track, plus we have had a finance planner for a few yrs to get us started.


p.s. my dad has harped on a roth ira for years, I wish I started at 26

 

[WP64]

Why is this in Smack Down :shrug:

OP, did you screw that one up or was it intentional?

 

[Sniperdog]

he goofed., and he also asked for it to be moved :-D