retirement planning

Submitted by debtstinker on Tue, 11/06/2007 - 01:54

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

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.

Tue, 11/06/2007 - 02:59 Permalink

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).

Tue, 11/06/2007 - 04:06 Permalink

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?

Tue, 11/06/2007 - 04:15 Permalink

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. :)

Tue, 11/06/2007 - 04:18 Permalink

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.

Tue, 11/06/2007 - 04:53 Permalink

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

Tue, 11/06/2007 - 19:14 Permalink

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. :)

Wed, 11/07/2007 - 06:16 Permalink

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. :)

Wed, 11/07/2007 - 06:23 Permalink

HI George welcome back. Long time since I have seen you on the forum. :) welcome once again.

Wed, 11/07/2007 - 06:25 Permalink

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 glad to see that more people are here! i look forward to talking with you all and Laura thank you for the kind words :) Your posts are really great and supportive!

Wed, 11/07/2007 - 12:54 Permalink

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 :)

Thu, 11/08/2007 - 05:56 Permalink

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.

Thu, 11/08/2007 - 05:59 Permalink

Well that's such a strong supportive mindset. Sometimes you can just help when you 'listen' to a situation and respond with a kind attempt. I've read other forums (not on this site) where people blast each other. What they hey? have nothing better to do than to make people feel like dung? I know that they are few and far between but as humans we tend to focus on the negative and one thing someone says can ruin their day or make it. I think we've found each other very supportive :)

Thu, 11/08/2007 - 12:56 Permalink

Debtstinker...Thats the way people should be. We are not creating communities to blast each other. This is a force that can help many out of distress and support the members who need it.

For the people looking for some information on the retirement plans check this out
DOnt forget to leave your ideas/views/comments on this. We can discuss a lot about retirement plans :)

Fri, 11/09/2007 - 04:49 Permalink

Awwwwwwwwww, group hug, lol. just kidding. Hey I have to tell you that I am really enjoying the company here, you guys are awesome!

Debt stinker, You can act like your older and request information from organizations like aarp and such, just to get a look at whats going on at that age. They have tons of information.

I found a really good read on the mortgage forum too. You can get there from here, Hit the link up on top and then do a search for retirement. There is an great article there that deserves a print button. If you can't find it, let me know, I will find it and then pm the link to you.

Sat, 11/10/2007 - 02:01 Permalink

Hi Good. Could you please pm me the link. I would be really very interested in that. :)

Sat, 11/10/2007 - 06:39 Permalink

Morning, thanks so much good and laura! would love that site and Laura thank you for the site embedded in your post too. any information will help. actually, i never thought about the aarp, my dad and mom belong to that, i could have asked them! never thought about it cause they are on a fixed income, but i bet that there is tons of information out there surrounding those organizations. very nice :)

Sat, 11/10/2007 - 12:35 Permalink

ok, Laura and Debtstinker, I pmed you guys the link, just in case it gets pulled from the post. Don't think it violates the rules but you never know.
There is some really good information there, this agency has a real good reputation and alot of older folks that I know use it for many reasons. I believe it is trustworthy. We are not old enough to use the services but we can use the advice they are giving. Goodluck guys, hope this helps.

Sat, 11/10/2007 - 17:16 Permalink

gravy for the tators, I like your sense of humor, you crack me up.

How true about not depending on others to plan your retirement, seems the ones with the bucks when they are older have been proactive and taken steps to be more prepared than others.

Thu, 11/15/2007 - 02:31 Permalink

Its required to be proactive. Who would want to live off their children at old age. So saving for future is the best thing to do. Great link good. Thanks a lot for the support.

Thu, 11/15/2007 - 04:02 Permalink

I think if we look at what is available for today we can be better planners, we sure can't predict the future.

Thu, 11/15/2007 - 14:31 Permalink

Dadummy you are so optimistic and I like that approach. People like you inspire us to take life seriously and move on.

One thing is for sure our life after retirement is of course very important but that should not stop us from saving for our child. If we are bringing the child to life then at every step when he stumbles we should be the one to pull him up. Thats what parents are all about :)

Fri, 11/16/2007 - 03:24 Permalink

I have looked at the AARP website and know alot of seniors that are part of the organization. I think it is a good guide to start with, seeing whats available now may inspire us for our futures.

Fri, 11/16/2007 - 16:02 Permalink

Very very true. My parents are both members of the AARP and they love it! very informative organization, they send frequent newsletters about services available and financial tips. I think my mom collects those things, i'll have to get them next week when we see them for the holidays. she always loads me with goodies :) maybe she'll have some newsletters to give me as well

Fri, 11/16/2007 - 23:40 Permalink

And then you can come here and be all of our retirement advisors, lol. Any good information that you want to pass along would be great.

Sat, 11/17/2007 - 12:37 Permalink

You are never too young or too old to prepare for retirement, starting young is smart.

Sun, 11/18/2007 - 01:25 Permalink

I agree dadummy. We all have to go through that stage in life so starting early helps a lot. The earlier the better

Tue, 11/20/2007 - 04:32 Permalink

Yes the earlier you can the better, life goes by so quickly and you never know! you may get to retire early oh sigh, i wish

Wed, 11/21/2007 - 00:22 Permalink

Wow, thanks so much Laura!!! appreciate you taking the time to look that up and share it with us

Wed, 11/21/2007 - 14:54 Permalink

I am just preparing for the future :lol:. You are welcome debt. I found it interesting and in a way mistakes can be avoided if we know about it.

Thu, 11/22/2007 - 07:06 Permalink

I can't ever see me fully retiring, I will always work part time at least to stay busy, I would go crazy sitting home everyday. I feel better when I am out and about and involved in something useful. I can't do all the physical work that I used to do, but I can still do a good days work.

Thu, 11/29/2007 - 03:50 Permalink

Whatever you do securing the future is a necessity. We cant depend on anyone

Thu, 11/29/2007 - 09:24 Permalink

Isn't that the truth, at 24 I'm very skeptical on the stability of hte social security system and I'm having a hard time, despite being college educated, finding a job that will either allow me to contribute to my retirement or even better match my retirement efforts. that is a big goal of mine. Yes, I know that I can contribute on my own but right now i have a hard time making ends meet, but hopefully that won't always be the case and I can start saving for that wonderful day that I"m on the beach with a handsome man/men (i'm single ;) enjoying life. perhaps i won't be single in my sixties or hey maybe i will :) :)

Sat, 12/01/2007 - 01:21 Permalink

D, you have the right idea...i think you have to prepare for your own future and not rely on any governmental program to protect or help you, if it's there great, but if not then you'll have your own money to fall back on and at your age, if at all possible, is a great time to begin saving. Good luck finding a position that helps you to establish a retirement account. they're out there, just finding them can be hard sometimes. have yout hought about human services? i have worked for two now, working for one (just got a job whooo hooo) and i love working for human services orgs. the reason I bring them up is that both agencies offer 403b plans since they're non profit. Now, with my current company I have to wait a year before investing but once my anniversary date is up not only do i start contributing my company does too up to 6%. while that doesn't sound like much I'll take whatever I can get! :)

Sat, 12/01/2007 - 12:22 Permalink

Congradulations on your new job, I hope you will still bless us with your presence, we would miss you if you totally deserted us.

You are right that every little bit counts. That 6 percent will grow if you stay with the company for a long period of time, hang in there. Is this long term employment?

On a side note, what will you be doing in your new job, starting a new job is always so exciting. Have you done the type of work before or are you venturing into something new? I am happy for you and hope that you will come back and keep us updated. goodluck, did you start yet?

Sat, 12/01/2007 - 13:42 Permalink

Great job debtstinker, I hope your new job is all you dream it to be, I am absolutely positive that you will do a wonderful job. You sound like you genuinely care about people and that is good that you like to work in human service, that is exactly where you belong with your way of caring. I wish you all the luck in the world and hope that between work and baby you will still have time to pop in and participate with us every now and then. Congradulations and keep us posted on how things go.

Sat, 12/01/2007 - 20:28 Permalink

She will do a great job and come back and tell us all about it, right debtstinker, you know we will be anxious to hear all about it.

Sun, 12/02/2007 - 00:28 Permalink

Yeah debt... let us know!! ;) getting a job can be very exciting. while i don't make much where I work now I ENJOY it and that's a big plus. before I was management and would have to put in hours after hours that weren't paid for and the salary wasn't good, lots of stress. so my company allowed me to take another job in another department, and i reall ylike it. great managers too and the employees seem happier. I like having set hours too where before my hours were so weird. I would be eating my dinner at like 10 pm!

Sun, 12/02/2007 - 02:32 Permalink

Hi ladies, wow what a warm welcome tonight. Yes I LOVE my job so far and I really enjoy working with people, espeically with people who just need some help. Often they teach me valuable lessons about life that you just can't learn in the classroom. thanks good for the kind words, I do love people (most of the time lol :) I had my first day of orientation and just really enjoyed what i learned. I get to supervise people who go to homes in our county and help the elderly with every day tasks like grocery shopping and house cleaning. my people report their hours and any concerns they have to me. Lots to learn, lots of responsibility but i think i'll truly love it. I will be here quite a bit especially over the weekends and maybe at night. I do have to say that my little one is just now experiencing separation anxiety and I was proud of myself, i wasn't heart broken when he screamed when I left him. I have the attitude that he has to adjust that there other people in the world besides mommy and that his social development will be enhanced this way. very good situation for all involved. hugs everyone :) happy saturday
jeez d15 glad you have a better job in your company! eating that late would not agree with my tummy

Sun, 12/02/2007 - 02:49 Permalink

Well desi, that will take some getting used to that is for sure, I am sure you will do well there.

debtstinker, sounds like you are loving it already, good point about your toddler, it will help him socially if he is around other children too. Soon he won't even know you are missing and then that will bother you, LOL. It did me, when they first start looking forward to leaving you and going to a sitter. LOL. Don't take it personally, he will still want you when you come home in the evenings.

Sun, 12/02/2007 - 07:21 Permalink

Hey Good, I actually look forward to the day he llikes the sitter. actually he loves her it's the other kids he doesn't like. There for a while when he was about 9 months he just adored going because he found a playmate. well his playmate (the same age) found another playmate but they fight and the baby cries when he hears them fight. so right now i think he has negative connotations going there. today was much better.
Yes, am really loving my job so far. my supervisor is so patient and laid back but effective too. I met some of the people i'd be supervising and ALREADY had to sign of on time cards! wow, pressure but it was good my day went by so fast.

Tue, 12/04/2007 - 01:53 Permalink

Yeah good, it's an adjustment but a very good one. hey debt good job on getting employment, sounds like you really like it

Tue, 12/04/2007 - 02:04 Permalink

She will do great, she sounds like a caring person that will be excellent for this type of work.

Tue, 12/04/2007 - 13:53 Permalink

Debtstinker, how is it going with your new job? did you say that you have a retirement plan there or that you have the opportunity to contribute after a certain amount of time, I was not real clear on that?

Hope all is well with you and that you are liking your new job and that it turns out to be your dream job, one that you will stay at for a long, long time.

Is there room for you to move up in this company? do you have the desire to move up. With the compassion you have it would be awesome if you could move up and manage so that people like you could be hired through out the company. Please let us know how you are doing? We are curious you know. Goodluck

Sat, 12/08/2007 - 22:07 Permalink

Well, if I understand the op question correctly... I wouldnt defer paying into my 401k until my employeer started kicking in some $$...

This is why:
You will make money from the interest you invest. If you dont invest, then no interest is paid.... Thus loss of money...

Just my .02 cents worth...

Mon, 12/31/2007 - 01:05 Permalink

Well if we can pay a little more towards the 401(k) a lot easier would it be during the tax period coming year.

Mon, 12/31/2007 - 06:07 Permalink

That is true because I am pretty sure you even get a tax credit for having a 401 k.

Wed, 07/30/2008 - 12:38 Permalink

You will get a tax credit for contributing to your 401k, it even comes up on the simplist of tax forms like the 1040, thats what I file and they ask that question, it should be on your W2 how much you contributed.

Thu, 07/31/2008 - 09:54 Permalink