Personal Retirement Funds

[Gulfstream 200]

Luck, timing, skill or desire is irrelevant. The fact is that I'm here and there are still places where you can safely and comfortably retire on a company retirement plan alone. My personal saving and investments are just icing on the cake.

Regardless of whether you have a company retirement plan or not the old adage of pay yourself first is still generally good advice.

he's 39 and banking on that UPS pension to be there in 30yrs

sounds like a Delta pilot to me.

scary.

 

[bafanguy]

... pension to be there in 30yrs

sounds like a Delta pilot to me.

scary.

Don't worry, we've been slapped by the first lesson with the "final" lesson to follow shortly.

 

[pilotyip]

Reminds me of when I was jumpseating in the DAL cockpit back before 911. I talking to the pilots, both had been in the reserves as pilots one USAF and one USN. They had both stopped drilling in the mid 90's after about 14 years of service. I mentioned that the military retirement at age 60 was something I was really counting on. I felt it was worth keeping in my back pocket since my spotted career had no pension. They both said it would be not much compared to their DAL retirement, and it was not worth giving up family time, and QOL to drill for another 6 years. I wonder if they are calling any guard and reserve unit right now?

 

[needapayraise]

he's 39 and banking on that UPS pension to be there in 30yrs

sounds like a Delta pilot to me.

scary.

Boy, you pax guys are sure jaded, and with good reason, about pensions, but UPS is NOT an airline! As much as I hate working here, this place has been in business almost 100yrs and is one of only a handful of AAA rated companies in the world. Our pension is going to be in the SAME plan as the managers. If they go after ours, they will be going after their own and you and I know that aint gonna happen. UPS has also been it's most profitable SINCE 9-11. I know it's hard for someone that doesn't work here to understand, but this place is a profit generating machine and I'm more that willing to stake PART of my retirement plan on having a UPS pension in 21yrs.

 

[Immelman]

I have been maxing out my 401k for a while now. If you can afford it, its great if for no other than to see the portion of your paycheck going to King George being greatly reduced. Remember, 401k contribs skim off the top, before taxes come along... so for every dollar you put into the 401k, ~70 cents or so is what comes out of your net pay.

 

[Dangerkitty]

I have been maxing out my 401k for a while now. If you can afford it, its great if for no other than to see the portion of your paycheck going to King George being greatly reduced. Remember, 401k contribs skim off the top, before taxes come along... so for every dollar you put into the 401k, ~70 cents or so is what comes out of your net pay.

If you are not investing in a Roth IRA then you are really screwing yourself.

While 401k monies grow tax defered, Roth 401k monies grow tax free.

Maxing out a 401k is great but if you are not investing in a Roth IRA you are pissing money away.

 

[JohnDoe]

Any recommendations on companies to use for the roth? I was about to start a vanguard, and noticed that as of Nov 1st., their minimum starting contribution went from $1000 to $3000. Not that big of a deal, just seeing if they were worth it.

 

[shamrock]

Any recommendations on companies to use for the roth? I was about to start a vanguard, and noticed that as of Nov 1st., their minimum starting contribution went from $1000 to $3000. Not that big of a deal, just seeing if they were worth it.

I've had good luck and been happy with T Rowe Price for my Roth. There's no minimum to start a Roth IRA as long as you sign up for automatic contributions of at least $50 per month. They tend to be a bit more expensive than Vanguard but back when I wanted to open a Roth I didn't have $1000, so I went with them. I may look into Vanguard again for some future investments but I'll most likely continue with TRP as well.

 

[PC800]

RockyMtn1,

You dont need Long Term Care Insurance until you hit your late 50's or early 60's.

Not necessarily. There are many people in skilled nursing facilities due to accidents, not old age-- and such people often end up staying in those facilities for decades. While accidents can happen to anybody, younger people are more prone to engage in high risk hobbies (motorcycling, skydiving, etc.), so they're especially at risk.

I wouldn't say that LTC insurance should be a high priority purchase for everyone, but for those interested in covering all the bases, it's a prudent move-- and relatively inexpensive for younger folks, even with inflation protection and no-limit payouts.

 

[smellthejeta]

Yes, that is what I am saying. I know it sucks to miss out on company matches with 401k's but use that as your motivation to get out of debt, FOREVER.

You stated that if you make obscene payments to pay down your debt it would take you 4-5 years to pay it off. Well, what if you pay half that? Then it's going to take you 10 years to pay that off. If you pay off your debt and pay it off NOW you can then use your biggest wealth building tool (your job) to start building a financial nest egg for the future.

I dont know your situation, but if you could somehow take on a second job and bring in some extra income then you could really bust your tail to get your debt paid off. Think about it. What if you paid $1,000 a month towards your debt and got another part time job bringing in another $1,000 a month.

With $2,000 a month going towards your debt you could have that loan knocked out in just over 2 years or so. You then have nothing in your way developiing a HUGE pile of cash for your future. I know it would suck for a few years trying to get all that paid off but you will be in a much much better financial position if your do so.

Most people are resolved to the fact that the will never get out of debt. Thats why people who seem rich are actually flat broke.

Being in debt is only a scam brought on by the banking industry and the credit card agencies that have been adopted by the general public. When you are deeply in debt you have no chance getting financially secure unless you break that cycle. Being in debt only means you are getting the banks wealthy.

Thanks for the thoughts. However, I already work two jobs and overtime at the first It just sucks that the cost of living in this area is so high that in any other part of the country I'd be "doing great." I'm trying to establish a house downpayment/rainy day/job pisses me off and I want to quit/emergency fund. My goals now are to have $10,000 in that account (it's interest bearing at 4.00% -- not huge, but does the trick, no fees, and can be liquidated for no penalty) and then I'll reeveluate what I'm doing with the money going into that account. Given my past financial position, nobody can convince me that I am better off putting that money against student loans and then living off of my credit cards if something were to happen with my current job. I did that once already, and it was NOT pretty. The current job is by no means a career job, but I'm doing what I can to make it work while I'm waiting for the career to roll around. Pending the successful resolution of a hairy medical issue, this career job should be rolling around this summer. The offer's on the table, so it's not an "I hope it'll happen" type of job.

But I am with you on the whole debt mentality. The car got paid off 1.5 years early, the credit cards are paid off, and the only thing left is student loans. I'm actually paying those

 

[pilotyip]

Pilots without college degrees do not have student debt, start their careers four years earlier, which gives them a higher of income and with no student loans a lower rate of outflow. Nice margin for investmet.

 

[Dangerkitty]

Not necessarily. There are many people in skilled nursing facilities due to accidents, not old age-- and such people often end up staying in those facilities for decades. While accidents can happen to anybody, younger people are more prone to engage in high risk hobbies (motorcycling, skydiving, etc.), so they're especially at risk.

I wouldn't say that LTC insurance should be a high priority purchase for everyone, but for those interested in covering all the bases, it's a prudent move-- and relatively inexpensive for younger folks, even with inflation protection and no-limit payouts.

I realize that. However, LTC insurance DOES NOT pay for skilled nursing care.

Thats what Medical Insurance is for.

 

[Dangerkitty]

Thanks for the thoughts. However, I already work two jobs and overtime at the first It just sucks that the cost of living in this area is so high that in any other part of the country I'd be "doing great." I'm trying to establish a house downpayment/rainy day/job pisses me off and I want to quit/emergency fund. My goals now are to have $10,000 in that account (it's interest bearing at 4.00% -- not huge, but does the trick, no fees, and can be liquidated for no penalty) and then I'll reeveluate what I'm doing with the money going into that account. Given my past financial position, nobody can convince me that I am better off putting that money against student loans and then living off of my credit cards if something were to happen with my current job. I did that once already, and it was NOT pretty. The current job is by no means a career job, but I'm doing what I can to make it work while I'm waiting for the career to roll around. Pending the successful resolution of a hairy medical issue, this career job should be rolling around this summer. The offer's on the table, so it's not an "I hope it'll happen" type of job.

But I am with you on the whole debt mentality. The car got paid off 1.5 years early, the credit cards are paid off, and the only thing left is student loans. I'm actually paying those

Smellthejeta,

I will send you a PM in a few hours. Read it when you get the time.

 

[Dangerkitty]

Pilots without college degrees do not have student debt, start their careers four years earlier, which gives them a higher of income and with no student loans a lower rate of outflow. Nice margin for investmet.

Pilots without degrees also box themselves into a corner and limit their job prospects.

Like it or not many pilot employers require a college degree for someone to work there.

If I had not had my college degree I wouldn't have been hired at American Airlines, Delta Airlines nor the one Fortune 500 Company I flew for and the Fortune 500 Company I fly for now.

If someone looses their medical that can have a huge impact on their earning potential in other lines of work. Because like it or not many employers require that employees have a college degree.

Finally it is possible to have a College Degree and not have sutdent loan debt.

What you have against College Degrees and pilots is beyond me. But to encourage someone to not get a college degree is irresponsible to say the least.

 

[PC800]

I realize that. However, LTC insurance DOES NOT pay for skilled nursing care.

Thats what Medical Insurance is for.

Uh, no, it's not.

I have a very comprehensive Blue Cross/Blue Shield medical policy, and it provides very limited coverage skilled nursing care coverage-- and only for those enrollees that have Medicare Part A. Their benefits brochure specifically states, "Note: If you do not have Medicare Part A, we do not provide benefits for skilled nursing facility care."

OTOH, skilled nursing care coverage is a benefit of my John Hancock LTC policy. This is quite common in LTC policies, and often required by state law. For instance, for LTC policies sold in the State of New York, "The home care benefit must cover skilled nursing care, home health care, personal care and assisted living care."