Pension and retirement

[RBatson]

Just last month we were informed that the pension we were planning on was drastically cut. It actually took place the day after I was married My insurance was cut as well(I won't go into that). I was looking at retiring after 33 yrs with a $3k a month retirement. Since the cut and after doing the little formula they give for time credited and time left I'm looking at $1900 for 33yrs of service, at age 52. After paying for insurance I'm left with $850.. So I guess I'm looking at working until I'm 62 to get $3500 and insurance.. what the hell, that's only 43 yrs of service. I've been holding out with this job thinking about the $3k@52 and moving to Fla and now at the age of 35 I see the rug yanked out from under me! Had I known this at the age of 22 I would have moved to Fla and found a job there. I guess I can't complain too much because I still make a decent wage but I can't help but wonder how long it will be until that changes. With Mr. Bush giving immigrants 3 yr work permits I guess there goes more jobs, ultimately affecting mine.

This is happening all over America and I do feel lucky to still have a good job(which could change at any time). I guess I shouldn't be too upset because my pay/insurance/pension is alot better than most working class people but I can't help but feel cheated. I guess we will all have to build our own retirement plan, which is what most companies want now(401k), and hope we planned far enough ahead to see us thoughout our days.

I'm sure alot of you guys are going though this, maybe not.. Its just another reason to look for the Made In America tag when you go to buy something. Even if it cost 10 bucks more, there's more to it than that...

I guess we can't take anything for granted and maybe we should live for the moment and live the life we want because after all nothing is gauranteed.

[Maroon 5.0 LX]

Yep, I heard on the news this morning, IBM just cut 3,000 software programmers here, and outsourced them to China. These U.S. folks average $54/hr. China averages about $2/hr.

I read on these boards the amount of money these youngsters spend on their cars. They have $100 in their pocket, and no food, but they'll buy something for their car.

They should really think about putting that $100 away for their old age, as it's gonna be really tough to survive in retirement 30-40 years down the road.

[mustardjohn]

Bad situation. Another negative about pensions is that they are often back end loaded to keep you in a job with significant penalties if you don't reach a certain age, say 58, and years of service. The total of age and service adding to 85. Penalties can be as high as -10%/year for every year under 85. What we need is portable pensions. The comapnies don't want this as it adds to turnover problems. It would be great to get to count all work service toward the 85. But loyalty of large companies is waning and it is getting harder and harder to get to the magic 85. Looks like I won't make it as our company is being spun off and sold. It could be worse though. Looks like I will get to retire and draw a pension while still working. Maybe. Other wise I will be in the job market. Which gets harder the older you get.

You are so right on the 401K. Save save save! You will need it as pension plus Social Security will not make the wheels turn. Alternative is to downsize your life. But with property taxes and health care costs on the rise just those two items alone can cost several months pay.

Florida is great but there are many nice warm places on the Gulf Coast in Mississippi, Alabama, Texas and Louisana that may be less expensive. South Georgia ain't bad either.

[Dark_5.0]

I just recently started to see the "big picture".
If you havent noticed I sold my 01' cobra that I had.
I was paying 476 per month and 170 a month insurance.

My 90 coupe is currently my only vehicle other than my work truck

I am 27 years old and mak decent money. My girlfriend gets out of college next year with a psychology degree so I will wait till then to have a bad @ss new car.

My company doesnt offer 401K yet. Is there something I could set-up with my bank?

It sucks to here about your pension. BTW: I feel betrayed by Bush, he ran on a republican platform and all of the sudden turned liberal on us.

[mustardjohn]

IRA's are the 401K you can set up on your on. You are limited in how much you can put in with a tax break about $2000 a year but it grows tax defered until you take it out. Once you put it in, there are penalties for taking it out before 59.5 years old. Talk to someone about IRA's. There are two kinds regular and Roth. Get some good IRA advice from someone you trust but do save a little every month. At 27 you have time on your side.

[Stang_Crazy]

The company I work for doesn't offer a pension but we do have a 401k plan PLUS my employer matches what I put in dollar for dollar up to 3%.

I have the money taken out of my check every week which is nice because I learned to adjust my lifestyle accordingly and after the first few months, I got used to it. My IRA is a long term growth fund (20+ years) that I don't plan on touching for quite some time. At 23 years old, I have had my IRA for almost a year now and as long as I keep investing the way I have been, I should be in great shape when it comes time to retire (45 or 50 yrs old).

Who knows, by the time I'm ready to retire, social security will probably be a thing of the past.....

[RBatson]

Originally posted by mustardjohn
Bad situation. Another negative about pensions is that they are often back end loaded to keep you in a job with significant penalties if you don't reach a certain age, say 58, and years of service. The total of age and service adding to 85. Penalties can be as high as -10%/year for every year under 85. What we need is portable pensions. The comapnies don't want this as it adds to turnover problems. It would be great to get to count all work service toward the 85. But loyalty of large companies is waning and it is getting harder and harder to get to the magic 85. Looks like I won't make it as our company is being spun off and sold. It could be worse though. Looks like I will get to retire and draw a pension while still working. Maybe. Other wise I will be in the job market. Which gets harder the older you get.

The deal we had before was 25yrs (full time service) and out at any age with $2000 retirement or $2500 after age 57, with insurance. At 30 yrs you'd get $3000 at any age. I worked 2 1/2 yrs part-time so that doesn't count towards my retirement at this point. It -6% for every year before 62 in the new plan with a cap of $3500 retirement. The main problem we are having is that the fund that we are in is a group fund.. different companies are covered under it and some are going bankrupty and some just can't pay thier share anymore leaving the burden of thousands of retirees on the companies that still exist and do pay thier share.

Florida is great but there are many nice warm places on the Gulf Coast in Mississippi, Alabama, Texas and Louisana that may be less expensive. South Georgia ain't bad either.

I've thought about Texas because its close to the Florida climate but I like living close to the beach, ocean side. I can't imagine not living close to the ocean but the west coast doesn't appeal to me, don't think I would be able to afford it.

[RBatson]

Originally posted by Dark_5.0
I just recently started to see the "big picture".
If you havent noticed I sold my 01' cobra that I had.
I was paying 476 per month and 170 a month insurance.

My 90 coupe is currently my only vehicle other than my work truck

I am 27 years old and mak decent money. My girlfriend gets out of college next year with a psychology degree so I will wait till then to have a bad @ss new car.

My company doesnt offer 401K yet. Is there something I could set-up with my bank?

It sucks to here about your pension. BTW: I feel betrayed by Bush, he ran on a republican platform and all of the sudden turned liberal on us.

Yep, IRAs. I invested most of my money in real estate(a rental house) and after 4 yrs of owning it and puttin some money in it, it is going to give a pretty decent return. I was in the 401k for a couple yrs and summer before last I had to quit investing every month in it because I bought the Avalanche and suddenly the renter I had couldn't pay the rent anymore. I have since refinanced everything and doing alot better so I need to go ahead and get back in it. Real estate is usually a great investment, they aren't making it anymore. Heeh. I understand about the car too.. it sucks. I've throw more money away in cars than anything else, mainly the 89lx money pit I love so much.. I really screwed myself buying the new Mach too. After the sell of my rental house(very soon I hope) I would have only owed around $20k on my house and could have paid it off in less than 18 monthes but noo I have to buy a new mustang.. bring the payoff to around $45k on the house. Stupid me.

I hope your girlfriend has better luck finding a job than my wife, she has a Bachelor's and Associate's in marine biology. Maybe the psych degree would be more helpful. The main problem is that she is considered "over-qualified" for alot of jobs and the jobs in her field have alot of competition. She has resumes in at both the local college and university and we are hoping something will turn up but until then, its just my income. She is supposed to pay the payment of the Mach, good thing I didn't count on that LOL.


As far as Bush, I don't know.. Minding the family business??

[RBatson]

Originally posted by Stang_Crazy
The company I work for doesn't offer a pension but we do have a 401k plan PLUS my employer matches what I put in dollar for dollar up to 3%.

I have the money taken out of my check every week which is nice because I learned to adjust my lifestyle accordingly and after the first few months, I got used to it. My IRA is a long term growth fund (20+ years) that I don't plan on touching for quite some time. At 23 years old, I have had my IRA for almost a year now and as long as I keep investing the way I have been, I should be in great shape when it comes time to retire (45 or 50 yrs old).

Who knows, by the time I'm ready to retire, social security will probably be a thing of the past.....

We don't get any matching, must be nice. A 401k or IRA is a great deal because it snowballs over time but at the end the taxes kill you unless you pay the tax as you go which effects the snowball(grows much slower). I've heard alot of people say that its better to split the plan with some higher risk when you're younger(you can afford it) and less high risk the older you get. The chances are if it drops it will turn around given time. Example, I have 100% of my 401k in the S&P and it did drop quite a bit but it has since started to show a profit again.. Had it dropped a month before I retired I'd be nervous but I've got plenty of time for it to turn around. High risk, potentially bigger pay off and slip it into something more stable when you get alittle older.

Social security, probably be a thing of the past before I retire.

[Stang_Crazy]

Oh matching is great!! It's like free money! I would split and go with a higher risk but I don't plan on touching my IRA for at least 20 years. The fund that I'm invested in isn't too conservative and isn't too aggressive (~13% return over 15 years) which I like.

High risk and big returns would be nice but I don't want to risk losing my money because I really can't afford to. I figure in 20 years, I'll have my house paid off and my IRA will be in great shape (hopefully) so there is really no need to invest in 'high risk/high return' stock. Fast returns might be nice but as long as I keep investing the way I currently am and don't stray too far off the path, everything should work out pretty good.