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I also have a weird thing most folks don't have which is a pension. I'm currently putting 15% into 401k (no matching) but I also get a pension based on hours banked. If I keep working this job until 65, my pension payout calculation is $4500/mo until I die and I also get pension health as well. Not sure if my pension health extends to my wife tho.
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Nov 11, 2021 21:02
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Inner Light posted:Ugh, I do already have a trad IRA due to rolling over an old 401k into a Rollover IRA (which I think is considered a trad IRA) a long while ago. Look into rolling your Rollover IRA into your current 401k, if you have one and it's decent. Doing that will make a backdoor Roth easier/doable. It'll have to be done by December 31st if you want to backdoor this year. Alternatively, if it's a small IRA, you can pay taxes on it now and convert it to Roth along with the backdoor.
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Nov 11, 2021 21:36
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N. Senada posted:These were both very helpful. We decided to each create an IRA and are starting that process today. Trying to set up with Vanguard but I cannot create an account with them - keep getting some technical error :| Not a problem! I have saved thousands of dollars by discovering BFC, so I am very happy to pay it forward. I was not very educated until I started reading here. Also, I am biased and like Vanguard, but Fidelity is totally fine, just make sure it’s the equivalent target date fund and a expense ratio of less than 0.2%.
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Nov 11, 2021 23:36
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Fidelity in particular likes to push their lovely target freedom funds that are like a .6% expense ratio. They have better, low cost ones, but good luck finding them on the site. If you're having trouble just post what year you want here and we can help find the ticker.
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Nov 11, 2021 23:53
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Yeah, the difference is to look for "Fidelity Freedom Index {Date} Fund - Investor Class" vs. "Fidelity Freedom Index {Date} Fund" I screwed that one up for a little bit when rolling my wife's Fidelity 401k over to a Fidelity IRA, but the difference for at least the 2040 fund is 0.12 vs. 0.75. I only looked into fixing it, because people said Fidelity was competitive with Vanguard and I thought something seemed sketchy.
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Nov 12, 2021 00:15
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Shaocaholica posted:Trying to catch up on all this. Read the OP. Still reading If You Can. The example in the op is $2mil by 65. Does that assume the retiree is paying rent/mortgage until they die or are living in a paid off house? As others have mentioned, your number depends on expenses, not income. To incorporate a mortgage, your number will be something like this: [Annual expenses excluding (the principal and interest portion of your mortgage payment)] * 30 + [outstanding mortgage balance].
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Nov 12, 2021 01:37
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I’ve accepted a new job and I’m reading over the benefits package, all of which sound great, but are new to me, so I don’t understand them all. Along with googling, I’m asking here and I’ll be sure to check with the benefits department about this stuff. They have a pension plan, which appears to be 5.5% of my pay and they also offer a 401k on top of that that offers what looks like 4.5% match. It would be a no brainer to do both, correct? I’d like to max out the 401k if at all possible. There are no 401k limits combined with pension contributions, are there? They also offer something called non-qualified pension and savings plans payable in the absence of IRS limits. This doesn’t appear to be the pension/savings plan and I don’t have any idea what it is. The savings plan says they contribute 4.5% to that as well, so is that the 401k plan or something else? I’ll probably roll over my previous 401k into a vanguard Roth rollover IRA and put it in VTSAX, but I’m unsure what to do with the other options above.
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Nov 13, 2021 21:37
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that better be a hell of a pension if it costs 5.5% of your gross
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Nov 13, 2021 21:42
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How likely are you to be at this work place long enough that you might actually use the pension? If you don't see yourself there for a long time, it might be better to just increase your 401k contribution since that is much more portable.
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Nov 13, 2021 21:48
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pmchem posted:that better be a hell of a pension if it costs 5.5% of your gross It says that’s the amount credited per year, which I assume is withheld from my paychecks? I don’t know how to determine how good of a pension it is. Normally it’s 4.5%, but I’m >40, so it’s higher. E: maybe I explained it incorrectly - it appears that the employer credits my account with 5.5% per year, plus annual interest credits, but the benefits paperwork doesn’t say how much it will actually withhold. drainpipe posted:How likely are you to be at this work place long enough that you might actually use the pension? If you don't see yourself there for a long time, it might be better to just increase your 401k contribution since that is much more portable. Ideally, the remainder of my career, probably 10-15 years. I’m still planning on maxing the 401k as long as there’s no restrictions to do so with a pension plan. Cacafuego fucked around with this message at 22:07 on Nov 13, 2021 |
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Nov 13, 2021 22:04
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A real pension, AND a 401k match? Where the gently caress do you live, Germany ?
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Nov 13, 2021 22:12
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Duckman2008 posted:A real pension, AND a 401k match? Where the gently caress do you live, Germany ? The company HQ is in Germany, yes  I’m in the US though.
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Nov 13, 2021 22:58
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Cacafuego posted:E: maybe I explained it incorrectly - it appears that the [German] employer credits my account with 5.5% per year, plus In the states we call this a "5.5% employer match", I think is how I would translate that Here 4% is pretty common, I've seen 2% and 3% and occasionally as high as 6%. Pensions in the US are mostly extinct unless you're in education or utilities
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Nov 14, 2021 00:23
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pmchem posted:that better be a hell of a pension if it costs 5.5% of your gross As a federal employee (civilian) my pension eats like 4.4% or something. If I’d started a year earlier it would have been 3.1%, and before that 0.8%, in a wonderful case of union negotiations loving over new employees while grandfathering in older employees.
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Nov 14, 2021 00:56
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Hadlock posted:In the states we call this a "5.5% employer match", I think is how I would translate that It’s pharma
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Nov 14, 2021 01:09
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Education here, my pension contribution is 6.2%, and my uni kicks in another ... 12.4%? Something ridiculous. Six more years until I vest, though. To make up for it, our 403 "match" is 3% of the first $18k, so $540. No COLAs, no raises in the match. Back in the 1990s, that match was alright.
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Nov 14, 2021 02:03
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Cacafuego posted:It says that’s the amount credited per year, which I assume is withheld from my paychecks? I don’t know how to determine how good of a pension it is. Normally it’s 4.5%, but I’m >40, so it’s higher. It sounds like it reads like my pension. Company puts in money for you and you don't. Then you get the 401k on top. It is best to just ask HR how it works. My pension is 10% of my salary put in by the company each year (i put in $0) plus interest. Then a 4% 401k match on top of that. Those golden handcuffs....
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Nov 14, 2021 02:06
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Cacafuego posted:I’ve accepted a new job and I’m reading over the benefits package, all of which sound great, but are new to me, so I don’t understand them all. Along with googling, I’m asking here and I’ll be sure to check with the benefits department about this stuff. They have a pension plan, which appears to be 5.5% of my pay and they also offer a 401k on top of that that offers what looks like 4.5% match. 401k limits don't interact with pension contributions, so you're good there. if it's a qualified pension then your contributions should also be tax deferred. a non-qualified pension can range from being a kind of 401k like deferred compensation contribution to an insurance vehicle, your benefits department is probably going to be able to help you there more than we will pmchem posted:that better be a hell of a pension if it costs 5.5% of your gross as a ca non-law enforcement state employee, my pension deducts about 8% from my gross pay (technically i don't have to contribute from like the first $550 dollars in each paycheck), for 2% of max salary per service year at 62 with cola, plus zero cost health insurance after retirement. so depending on the benefit it's in the range of a major us public sector employer
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Nov 14, 2021 03:26
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Velius posted:As a federal employee (civilian) my pension eats like 4.4% or something. If I’d started a year earlier it would have been 3.1%, and before that 0.8%, in a wonderful case of union negotiations loving over new employees while grandfathering in older employees. As OG FERS locked in at 0.8% you have my sympathy. The revisions really hosed over later employees. I don’t know that any public sector unions had a hand in that though. As always, you can blame congress for deciding that underpaying federal civilian employees wasn’t nearly good enough punishment for their service.
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Nov 14, 2021 03:30
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spwrozek posted:Each year I put in $0 plus interest. New thread title?
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Nov 14, 2021 03:36
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GhostofJohnMuir posted:
Hello fellow CALPERS. Maybe STRS. 2@ 62 is a drat crime. Especially if I had been hired 2 months prior, it woulda been 2@59.5. And 2 years prior, 2@55. And they upped vesting to 10 years. Good god.
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Nov 14, 2021 03:56
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Loucks posted:As OG FERS locked in at 0.8% you have my sympathy. The revisions really hosed over later employees. I don’t know that any public sector unions had a hand in that though. As always, you can blame congress for deciding that underpaying federal civilian employees wasn’t nearly good enough punishment for their service. Yeah, I probably shouldn’t blame the union but it feels like this sort of thing doesn’t happen if multiple parties aren’t on board with loving over the employees of the future. Velius fucked around with this message at 04:24 on Nov 14, 2021 |
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Nov 14, 2021 04:16
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Noah posted:Hello fellow CALPERS. Maybe STRS. 2@ 62 is a drat crime. Especially if I had been hired 2 months prior, it woulda been 2@59.5. And 2 years prior, 2@55. i'm a new hire and this poo poo with bargaining units and a union that's nominally representing one single slice of the state employees seems like it's going to be a pain in the rear end. still, coming from a tiny employer in the private sector i feel lucky to have this
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Nov 14, 2021 07:14
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Velius posted:Yeah, I probably shouldn’t blame the union but it feels like this sort of thing doesn’t happen if multiple parties aren’t on board with loving over the employees of the future. It’s been going on for decades at this point. In Connecticut, to be in the Tier 1 pension you had to be hired before 1984. That was the 2% at age 55 with 25 years of service plan, which has run a deficit forever.
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Nov 14, 2021 15:08
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I got hit by a car while riding a bicycle and got a pretty decent insurance settlement (still not worth getting hit by a car). I have around 100k left on my mortgage. Should I pay off my mortgage and invest the amount for the mortgage into my retirement or invest the 100k directly into my retirement.
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Nov 14, 2021 15:47
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Sounds like compound interest on that bulk sum would bring in much more than paying off mortgage and then doing monthly deposits, if I understood correctly, but I'm curious what experts here think.
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Nov 14, 2021 16:01
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Milosh posted:I got hit by a car while riding a bicycle and got a pretty decent insurance settlement (still not worth getting hit by a car). What is your mortgage rate? Do you have any other debts and if so what interest rates? Do you have a 3-6 month emergency fund in cash? Do you expect to need more treatment/will be getting more medical bills as a result of the accident? If all of the above is in order, like low mortgage interest rate, no debt, you have an emergency fund, no more bills then this is a "hot topic" where the answer depends on what you personally want to do. Mathematically and realistically, locking up money in a house is making it very illiquid. Investing that money in a taxable brokerage account means you have much easier access to it, and even a simple conservative portfolio of low cost mutual funds are typically going to far outperform what you're paying in interest on your mortgage.
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Nov 14, 2021 16:02
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Motronic posted:What is your mortgage rate? Do you have any other debts and if so what interest rates? Do you have a 3-6 month emergency fund in cash? Do you expect to need more treatment/will be getting more medical bills as a result of the accident? Paid off all my debts besides student loans (I should qualify for loan forgiveness) with the initial part of the settlement. Our mortgage interest is ~3%. Sounds like investing it conservatively is the way to go. Thanks goons!
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Nov 14, 2021 16:06
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Vanguard has been begging me for years to transition my Roth IRA to their new platform. I can't find anything that breaks down how the fee structures or anything will change by doing this. I can't find anything on fees at all. What new fees will I incur by switching platforms on my Roth IRA that I contribute the max to, once a year, but otherwise completely ignore? I have a Vanguard target date retirement fund.
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Nov 14, 2021 18:00
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I'm pretty certain I incurred no fees nor did my fee structure change when I moved to the new platform. I think it's just an unfortunately laborious back end process on their side which takes up to a week.
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Nov 14, 2021 18:07
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GhostofJohnMuir posted:i'm a new hire and this poo poo with bargaining units and a union that's nominally representing one single slice of the state employees seems like it's going to be a pain in the rear end. still, coming from a tiny employer in the private sector i feel lucky to have this The big money is in the medical post-retirement which can actually start at 52 (pro-rated pension payouts). I'm not sure what your bargaining unit / union segment is, but there's definitely some disparities across CA employment. Godspeed you! public sector.
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Nov 14, 2021 19:27
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Velius posted:As a federal employee (civilian) my pension eats like 4.4% or something. If I’d started a year earlier it would have been 3.1%, and before that 0.8%, in a wonderful case of union negotiations loving over new employees while grandfathering in older employees. Up here in Canada, federal employee pension takes 8.89% of my gross each pay. Changes every year due to contribution adjustments, but it's still a pretty big chunk of each cheque.
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Nov 14, 2021 21:25
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If this is the wrong place to ask just say so and I will delete it. But I have some coworkers who have refinanced their homes for 30 years in anticipation of increased and sustained inflation. Is this crazy?
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Nov 15, 2021 03:41
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Mortgage rates are still historically low, and doing a refi to lock in ~3% fixed over 30 years is some of the cheapest leverage you’ll ever get regardless of inflation. And if we do see some sustained inflation and rate raises it’s even cheaper.
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Nov 15, 2021 03:49
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Guinness posted:Mortgage rates are still historically low, and doing a refi to lock in ~3% fixed over 30 years is some of the cheapest leverage you’ll ever get regardless of inflation. Thank you, When I talked to my wife about it I told her it feels like trying to time the market, but I also feel like inflation is going to stick around for a few years.
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Nov 15, 2021 04:19
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Ropes4u posted:Thank you, When I talked to my wife about it I told her it feels like trying to time the market, but I also feel like inflation is going to stick around for a few years. What's your current mortgage rate? Even absent inflation timing-the-market-isms, it might still make sense to refi now given how low rates are.
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Nov 15, 2021 05:16
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Ropes4u posted:Thank you, When I talked to my wife about it I told her it feels like trying to time the market, but I also feel like inflation is going to stick around for a few years. The reason you don't time the stock market is because you don't know what the stock market's gonna do. You know exactly what a 30 year mortgage at 3% is gonna do.
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Nov 15, 2021 05:35
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bergeoisie posted:What's your current mortgage rate? Even absent inflation timing-the-market-isms, it might still make sense to refi now given how low rates are. 3.25
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Nov 15, 2021 06:15
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That's basically market rate, isn't it? Can you even refinance much lower?
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Nov 15, 2021 06:38
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Won't find much lower than 3.25 on a 30yr fixed these days. A year ago rates were in the mid-high 2s but that ship has sailed. Low 3s is still historically low and drat near free money. Drag out that payment schedule as long as possible and let the time value of money and inflation eat away at the balance's real dollar value.
Guinness fucked around with this message at 07:05 on Nov 15, 2021 |
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Nov 15, 2021 07:02
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