What kind of retirement savings do you have?

jjbmstinco · August 2013

J and I both don't have 401Ks because we haven't been offered them. Our districts don't do them. We do something called PERA which is similar to social security but is a saving account for retirement. It isn't much though. Now that we are able to have a little money in savings, I want to start looking at what we can be doing. J is fighting me tooth and nail that he is too old to be saving for retirement and that he'll never be retiring. He will be 33 next Sunday. His uncle is 62 and was laid off in the spring. He also didn't save because he didn't think he would live that long because his dad and grandfather didn't. Well, clearly he is still alive and now scrambling. He can't find a job because of his age. I am so afraid that something like that would happen to us in the future. I suggested $100/month for each of us for a small retirement account. He is fighting me on it.

What are you thoughts? Any idea to sway him to my side?

jjbmstinco · August 2013

I just think SOMETHING is better than NOTHING.

Am12712 · August 2013

Its never to late to start saving! I dont have squat for retirement. DH has a 403b through work that he puts 100 a month in. Once we figure out finances with me staying at home we will look at him upping his amount.

Have him look up how much social security offers for money when you are old enough to collect. Its about 1000 a month, not enough. God forbid you need assisted living....that easily around 3k a month.

jjbmstinco · August 2013

I am able to get a 403b through work. I am thinking that I should just set it up without him. We won't get SS because we use PERA. Its weird but kinda nice all at the same time. I just worry that something would happen and we'll be up a creek. But he thinks we should be saving it for more immediate savings for like kids.

We already save $500/month for our emergency fund. And then we have our normal saving account with have about 1200 in it for more large expenses like a couch or vacation, car repairs, ect.

Jean9ds · August 2013

I agree with you Jen and Am. It's never too late to save. And I also agree that something is better than nothing

We didn't start putting anything away until Jared got this recent job in June, since we were still in school. Now, we put away $300 a month, which is 4% of his pretax monthly salary. His job matches 50 cents to every dollar for up to 4% so we are putting away that 4% just to start this year.

jjbmstinco · August 2013

See you all get what I am talking about!

jjbmstinco · August 2013

If I put 100/month in to accounts for him and I, I would be putting about 3% of my salary.

Jean9ds · August 2013

I totally get it. I'm the planner

what kind of account would you put it into? 401k, roth ira? We did 401k because that's what amazon matches for. Slightly concerned about what the tax rates will be when we end up needing it, but its free money.

After a bit, we may do a roth ira too, but that'll be at least another year before we put more away. Easier to start little by little for us

jjbmstinco · August 2013

IDK. Any advice is appreciated. Our companies don't match anything and don't contribute to anything but PERA. J thought an IRA would be better but he still doesn't want to do it. He kinda muttered, fine we'll do what you want. We both grew up pretty poor, so I think he is just worried that we'll be poor again right now. Where I want to do anything possible to ever end up poor again so if that means saving saving saving, I will.

jtmh2012 · August 2013

jjbmstinco said:

We both grew up pretty poor, so I think he is just worried that we'll be poor again right now. Where I want to do anything possible to ever end up poor again so if that means saving saving saving, I will.

Poor people don't save for retirement.

As for what we do....

I have a matched 401k at work. I contribute up to the match into it which is 6%.

I have a Roth IRA. Joy has a Spousal Roth IRA. We try to max both of those out, which this year is $5500 a piece or $11000 for both annually.

I also have an emergency savings account that is strictly for emergencies. A trip account in case Joy ever has to make an emergency trip home. A car fund. Three other general savings accounts. And our operational checking account.

jtmh2012 · August 2013

jjbmstinco said:

We both grew up pretty poor, so I think he is just worried that we'll be poor again right now. Where I want to do anything possible to ever end up poor again so if that means saving saving saving, I will.

Poor people don't save for retirement.

As for what we do....

I have a matched 401k at work. I contribute up to the match into it which is 6%.

I have a Roth IRA. Joy has a Spousal Roth IRA. We try to max both of those out, which this year is $5500 a piece or $11000 for both annually.

I also have an emergency savings account that is strictly for emergencies. A trip account in case Joy ever has to make an emergency trip home. A car fund. Three other general savings accounts. And our operational checking account.

jjbmstinco · August 2013

I think he is just worried we'll get into a bind and not be able to touch that money. Maybe thats a better way of phrasing it.

So what would you recommend for us Mark?

Am12712 · August 2013

If you participate in a 403b at work you still have access to that money. We took a loan out of DH's 403b and we pay it back (plus the interest) straight into his account. I don't know about IRAs and all that but even with a 401k you can have access to your money via a loan or withdrawals. Withdraws get taxed though.

jtmh2012 · August 2013

If you participate in a 403b at work you still have access to that money. We took a loan out of DH's 403b and we pay it back (plus the interest) straight into his account. I don't know about IRAs and all that but even with a 401k you can have access to your money via a loan or withdrawals. Withdraws get taxed though.

You have to be very careful taking loans from 403b/401k plans. Should you leave or get terminated, the loan becomes due immediately in FULL! if you can't repay the loan in full, then it becomes a withdrawal and is taxed and fined.

jtmh2012 · August 2013

jjbmstinco said:

I think he is just worried we'll get into a bind and not be able to touch that money. Maybe thats a better way of phrasing it.

So what would you recommend for us Mark?

You said you're doing 403b's? If so, there's probably a financial adviser you can sit down and talk to. They'll ask about your household financial situation and can help you plan the course of action appropriate to your circumstances.

ImperiumWife · August 2013

What I was told the other day at our beginning of the year staff meeting, was that a 403B is a 401K for the public sector. Same thing, but the employer doesn't match, and the name is different. The school probably pays something, you just don't see it as a benefit to your check. That is how it works in PA. They pay the same percentage I do into the teacher pension, but I never see it.

J and I are doing nothing right now, bad I know, but we are planning to add to the accounts soon. I told him we just need to pick a number. We are still trying to get used to what his company has to offer, and we were going to wait until we bought a house to figure out how much money we had left to put into it. But since that doesn't seem to be happening any time soon, we need to talk about it. Although, J does have a Roth IRA that he started at 19, and has already doubled.

As for it being too late, there is no such thing as being too late. Yes, your money won't grow as much, but he still has 32 YEARS until 65. There is a lot of growth that money can do in 32 years. It won't make quite as much, but it is still a whole lot better than waiting until your 50s.

What you should tell him is that it will keep you from being poor when you are older.

What kind of retirement savings do you have?

Re: What kind of retirement savings do you have?

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