rebeccad
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Post by rebeccad on Mar 14, 2017 8:24:40 GMT -8
Are there any defined benefit plans left? Government pensions, mostly, I think. In our case, university.
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tomas
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Post by tomas on Mar 14, 2017 9:08:44 GMT -8
Are there any defined benefit plans left? I have one as a federal employee. It's 1% of the average of my top three earning years times years of service.
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jazzmom
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Post by jazzmom on Mar 14, 2017 13:30:32 GMT -8
Fidelity is the biggest mutual fund company in the world. It's presence is huge across the USA. Note that the data is specifically about "workplace savings plan", so predominantly 401K type plans from your employer.
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tomas
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Post by tomas on Mar 14, 2017 13:38:25 GMT -8
Note that the data is specifically about "workplace savings plan", so predominantly 401K type plans from your employer Which is why I thought the numbers were shockingly low. I'm in the 50-59 group and the average in their 401k and similar stuff is only $152k? Do they even plan on retiring?
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Post by cloudwalker on Mar 14, 2017 13:45:23 GMT -8
I'm not doing great but I'm better off than most. I've got 86K in a state pension plan (26 years) and 20% of my gross income in savings and a small supplemental retirement account that I started way too late. I'll be eligible to retire in another 13 months (age 50) but in order to receive full benefits, I'll have to do another 3 years. I'm seriously considering the early option and get a part time job.
I don't know if I'm going to pay off my current debt with my savings or roll it into my supplemental retirement account and start drawing on that also. I'll have to get with my counselor and crunch the numbers.
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Post by atvtuner on Mar 14, 2017 13:53:07 GMT -8
1. Fidelity is trying to sell you it's services and products.
2. You have to fight, for your right, to party.......long term.
3. Stock up on adult diapers now. They will be much more expensive and embarrassing to buy in the future.
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Deleted
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Post by Deleted on Mar 14, 2017 15:15:42 GMT -8
Vanguard has similar information available on the workplace savings plans for which they provide recordkeeping services: How America Saves - 2016The data on average/median account balances with age is on page 45 (Figure 48).
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Post by cgaphiker on Mar 14, 2017 15:43:30 GMT -8
They're gone, gone, gone.
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kenv
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Post by kenv on Mar 15, 2017 5:23:38 GMT -8
Are there any defined benefit plans left? Government pensions, mostly, I think Even the military is in the midst of a switchover from defined benefit to defined contribution plan.
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rebeccad
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Post by rebeccad on Mar 15, 2017 7:08:52 GMT -8
Even the military is in the midst of a switchover from defined benefit to defined contribution plan. True. And people signing on at the university are getting less of a deal than we did. Which is too bad, though I think they are also getting better salaries, so have more ability to set up their own plan. And you'd hope that people with the education to teach at a university would have the awareness and self-discipline to do that, but that is not a given.
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Post by cuzimthedad on Mar 15, 2017 7:20:05 GMT -8
We had a discussion with our financial advisor years ago when we thought we were behind in our retirement investing. He asked me "what do you think the average age is when people start investing?" I said 35? He said guess again...51. I was floored. But then he described that people in their 20's are focused on finding a career and later a spouse. 30's raising a family and buying a home. 40's putting their kids through college, and not until they reach their early 50's do many people actually begin saving seriously. Again, that was based on an average and the figure may have changed in 17 years. However, it was enough to spur us on to save diligently.
We invested early (back in the 70's) in property in Sonoma Valley and still own what we bought. The bride has done well with her career and when my contracting business came to an end after Desert Shield/Storm (most people weren't willing to wait a year to have their homes built or remodeled) I went to work for the state and came out with a great pension/benefit package. On a side note, I found it interesting that not all state departments have the same plan.
Today, my wife is enjoying the first full month of her retirement. I am working just enough hours to be considered full time (only because I want to and feel I am making a difference where I work. They think so too which is cool!) and will evaluate my own retirement the first of next year.
Just to clarify, almost seven years ago I retired and took on the reigns of the local VFW post. It became a full time endeavor for me as the organization grew and became extremely active in the local and veteran's communities. I stepped down last year and the wife asked me to up my hours to close to hers so I would remain busy. She knew I had time on my hands and was looking rather woe-begone. I was already working part time for the company I am currently with (about 15 hours a week) and when I spoke with my manager he, in a nut shell, made me an offer I couldn't refuse to come full time. It's a one year test which I am already 5 months into. I miss the freedom of being part time and semi retired but I also enjoy what I'm doing which makes it not like work, and the compensation is way more than adequate.
I apologize for rambling on like this and possibly going off topic. But there is hope for people who are in their 50s and are just beginning to invest. They have their experience to offer and there are companies/businesses out there who will still hire for that knowledge.
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whistlepunk
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Post by whistlepunk on Mar 15, 2017 14:14:39 GMT -8
Two pensions for me, one for wife, SS for both, and a portfolio several multiples of what that site says is average. House is paid for -- no mortgage.
I must have been raised right, because I started an IRA with my part time jobs after school. There were some lean years when raising a family and very little got saved, but I always put away something, even if only a couple hundred per year.
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davesenesac
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Post by davesenesac on Mar 19, 2017 16:05:45 GMT -8
News media at the regular prodding of financial corporations and banks put out stories about wealth of Americans. Numbers are suspect to manipulation for the sake of the prodders. However it is true that most people don't have much wealth when home equity is removed. And statistics for the considerable demographic of people that don't or never owned homes is pitiful that greatly skews so called averages.
g.foolcdn.com/editorial/images/167925/median-net-worth-by-age_large.JPG
www.fool.com/investing/general/2015/05/25/the-typical-american-has-this-much-in-home-equity.aspx
Obviously much wealth has been solely due to appreciation of home equity and that is why after the 2008 bubble collapse so many people were in trouble and sobered up. Of course for decades the tune of those selling real estate has been that it always goes up.
In popular urban regions like here in the SF Bay Area the bubble still is growing after minor hiccups however that would change with a big earthquake so many scientists say is inevitable haha. Of note some regions are rather immune from disasters and economy issues.
Additionally most Americans have pitiful liquid assets as in their bank savings accounts. Of course why put money into bank savings in this era when one makes trivial interest.
After the 2008 bubble my own wealth had tanked. Not because I'd made many bad investments but because after leaving Cisco, I lived off my bank account 6 years. Great way to enjoy life haha. Note I've never bought real estate and simply have never been goal money oriented and instead have just been confident I could make money in my electronics career when necessary. After 2008 that is exactly what I did living cheap putting bucks back into the bank for 8 years until retiring recently. Current wealth is all liquid assets near the top few percent I probably ought to invest part in somewhere...yawn. And my SS monthly income is near the top to complement that. Not enough to ever buy a real home anywhere in coastal urban California but enough to live modestly another 20 years putting money into a rental rathole.
What I really need to continue living in this urban world as a content peon is to find a nice outdoor oriented gal in like excellent physical condition near retirement of similar mind that already has home equity but little liquid assets in order to complement our individual short comings.
David
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Deleted
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Post by Deleted on Mar 20, 2017 9:08:12 GMT -8
Additionally most Americans have pitiful liquid assets as in their bank savings accounts. Of course why put money into bank savings in this era when one makes trivial interest.
Maybe so that you won't have to visit a payday loan/car title loan place when you need a new set of tires or some transmission work? Those payday loan places seem to be on every corner these days.
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Post by Bateauxdriver on Mar 21, 2017 17:46:06 GMT -8
Up until 2012 we were set for a golden parachute pension. I was 20 years into my career and at age 52 a short 8 years later would be eligible for retirement with benefits. The rug was riped right from under us. The promise of almost 50% of pay with health care was gone in an instant legally! Now recent retirees are paying about $1,800 a month for health care. I did get a small starting amount of money in the cash balance plan my employer provides now but have to wait till 62. Luckily my paranoia paid off. We saved in 401k and IRAs. I'm 48 and hope to retire at 50. Won't be as glorious as I'd hoped but I'm not working till 62. I signed on to retire at 52. Healthcare will be the main limiter. If we continue working it will be for health care. Living abroad is a possibility to avoid US health care costs.
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