Money Management And Budgeting

retirement planning

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debtstinker

Joined: 03 Nov 2007
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Posts: 303

113 Magic Points

Subject: retirement planning

Tue Nov 06, 2007 1:54 am

Hopefully this is the right forum for this question. I am hoping to get a new job very soon that offers retirement. We desparately need the money and so I'm wondering if anyone else out there has held off putting money in their retirement until your company matches? my old company waited until either the fiscal year started in July to start matching up to 7% or January of the following year. they did not offer to match any other times and it depended when you came in to the company. again this is a curiosity issue. I know that you don't miss that money when you get it taken out of your check...wondering what others have done. thanks in advance

goodnatured

Joined: 03 Nov 2007
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Posts: 2882

189 Magic Points

Tue Nov 06, 2007 2:59 am

oh, there you go, you did post the question, I think you will get some pretty good responses here, but if you don't try one of the other forums listed above. There are some real smart cookies on them.

Laura

Joined: 21 Jun 2007
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Posts: 1408

34401 Magic Points

Tue Nov 06, 2007 4:06 am

Well 401(k) is the option that most companies provide. This is because of the portability of the plan and they dont miss out on the pension scheme in case they change their jobs. The income tax does not come into account and of course it does not do much harm to the pay check because a nominal amount is deducted from that.

I prefer this one to a simple pension scheme. I dont want to lose money because I might need to change jobs in the near future(just a possibility).
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Regards,
Laura.

Polly

Joined: 06 Jul 2006
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Posts: 63

3035 Magic Points

Tue Nov 06, 2007 4:15 am

Hey Laura the income tax just gets deferred till you actually withdraw the money. I would like throw a little light on this as I am on a 401(k).
I chose the participant-directed 401(k) plan which is quite common. The advantages being that I can select from a number of investment options like stocks, mutual funds, bonds, or an amalgamation of more than one.

There is another scheme which is trustee-directed 401(k). This this case it is the employer who nominates a trustee who on the behalf of the employee plans how his assets would be invested.

I hope this is of some help?

Laura

Joined: 21 Jun 2007
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34401 Magic Points

Tue Nov 06, 2007 4:18 am

Yes, I prefer the deferment. What I like about it is that it is a tax-qualified plan and is covered by ERISA. So my assets will always remain safe fom my creditors. Smile

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Regards,
Laura.

Brenda
Guest

Tue Nov 06, 2007 4:19 am

What is ERISA?

carol

Joined: 27 Jun 2006
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Posts: 288

8263 Magic Points

Tue Nov 06, 2007 4:53 am

Well the full form is "Employee Retirement Income Security Act" established in 1974. This outlines the minimum standards for retirement/pension plans in the private sector. It also sets the rules and guidelines for the federal income tax effects of transaction which is related to the benefit plans for the employee.
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Keep in touch
Carol

debtstinker

Joined: 03 Nov 2007
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Posts: 303

113 Magic Points

Tue Nov 06, 2007 7:14 pm

Hmmmmmm thanks so much for all your responses!! I am doing research on things now so i am better prepared when going into something like this. When it was offered to me in my former position i had NO clue what was happening and so went into my situation blindly. not a good way to go! again, thanks guys you're not only very supportive but give sound advice

Laura

Joined: 21 Jun 2007
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Posts: 1408

34401 Magic Points

Wed Nov 07, 2007 6:16 am

I would like to thank you debtstinker. You are doing a lot for the forum and our community here. After a long time I feel that now there is enough space to mingle with different people. Smile

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Regards,
Laura.

george

george

Joined: 06 Jul 2006
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2859 Magic Points

Wed Nov 07, 2007 6:23 am

Thats true. I had been off the forum for a long time. Just flipped through the pages and read the required information. Now with people around I am sure many like me and of course I would like to participate as well in the forums once again. Smile

Justin

Justin

Joined: 17 Jul 2006
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8088 Magic Points

Wed Nov 07, 2007 6:25 am

HI George welcome back. Long time since I have seen you on the forum. Smile

welcome once again.

george

george

Joined: 06 Jul 2006
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Posts: 75

2859 Magic Points

Wed Nov 07, 2007 6:27 am

Thanks a lot for the warm welcome Justin. Even i am seeing you after a long time Smile

debtstinker

Joined: 03 Nov 2007
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Posts: 303

113 Magic Points

Wed Nov 07, 2007 12:54 pm

Thank you all so much, I had looked through here before and didn't post or ask a question because there was little traffic on this site...so glad to see that more people are here! i look forward to talking with you all and Laura thank you for the kind words Smile

Your posts are really great and supportive!

Justin

Justin

Joined: 17 Jul 2006
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8088 Magic Points

Thu Nov 08, 2007 5:56 am

Yes we are really glad t be on this forum. Participation is what matters. Laura you are really supportive. In fact all members here are very supportive. I hope we can build better relations here Smile

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Best Wishes
Justin

Laura

Joined: 21 Jun 2007
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34401 Magic Points

Thu Nov 08, 2007 5:59 am

Thanks a lot debtstinker for the appreciation. I just try to help out people nothing much. I have learned a lot from this forum and really want people to learn as well to fight for their rights.
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Regards,
Laura.

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