Then you can contribute to a Roth, which you should be contributing as much as you can.
Do you get or will you get a pension?
- Thread starter ZZman
- Start date
Then you can contribute to a Roth, which you should be contributing as much as you can.
I actually get 2 company pensions. But a private company pensions is chump change compared to a state or federal government pension.
I retired almost nine years ago at age 50 with a Federal Pension and my Thrift Savings Plan. I'm also debt free which helps.
wemay
Site Donor 2023
Same
I am trying to use up RMD by taking QCD. Maybe not the whole RMD but at least half.
Yes, I'll earn 55% of my highest 5 years' earnings for life at age 61 as a "full pension." I'm not sure if I can make it another 20 years in my current role/profession. It's exhausting!
My wife will get a small teachers pension - if the state of South Carolina actually funds it someday. Funny - they take her money every check but they don't put in their own to the required amount.
I wonder how many more pensions will go bankrupt now that many of the baby boomers are pulling from them.
Yes, I pay into the same pot. It is concerning!
I believe Roth IRA should have a $35-40K yearly contribution limit.
Currently too low with crazy inflation.
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I am fortunate enough to get 75%
What industry will you be pulling out of?
$35-40K is infinitely better than $0. Besides, how many people can contribute $35-40k/year?
The IRA limit was $2,000/year when I started contributing. Crazy low, even when adjusted for inflation.
I doubt the IRS will ever be so generous as to raise the limits to what you propose, though that is a much more reasonable limit if people are depending on their IRA as their sole retirement income.
But the point is to max it out. No matter what the limit. Max it out.
People would be surprised how much that $2000 a year has turned into over the past 30+ years.
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There are some high earners that can contribute $35-40K yearly no problem.
Law enforcement
AutoMechanic
Site Donor 2026
To my knowledge I will not get any type of pension or anything when I retire which is still a long time. I have a 401K that I’ve been contributing too since I started working at my current job so 5 years. I just know one thing is I don’t want to be like my 82 year old coworker and not have a penny saved for retirement so that’s why I started the 401K as soon as I could so I could get it going. Right now I put 7% of my check in there. I hope I can get to a point eventually where I can do more but right now I loose so much for taxes and insurance and retirement that I can’t but hopefully I can one day.
For those of us without access to a pension, this is precisely what we need to do. Great job in getting started while you are young. I’ve been saving through my company’s 401k for 27 years now and have a solid retirement nest egg.
Spot on! If young investors listen to only 1 thing, this is the one.
I highly advise you to talk to a Schwab rep, or the rep of your choice. Beyond your wise 401K deduction, perhaps consider a nice S&P 500 index fund, or one mixed with high tech. Here's why; theS&P 500 is perhaps the biggest no brainer in the world. Strike a linear regression line to see the slope over the last 30 years... Pay yourself first! Your $$ should work for you at all times.
From a statistics perspective, exponential growth probably fits the data a little better as you go back further in time. IMO, we are in a different world now...
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