Instead of hi-jacking the XFR thread I started this one


Guaranteed my ***. Just ask all the people at Enron, tons of telecom companies, or even a stable government company like my first job at AIL. When the company takes a hit so does the pension plan. All you are guaranteed is getting the money back that you put into the plan each paycheck. After Enron and other companies effing over there employees, Bush has signed in a few new laws that protect you and mandates that pension plans be federally insured but that does not mean you are guaranteed to get what your plan currently states. Actually my pension plan was amended last year.

A 401k does not blow especially ones like the company Jay and I work for where they match our contributions. Actually they are a great investment if you do not plan to stay at your job until retirement. They are portable and can move with you from job to job.

I took the approach of spreading my eggs in different baskets by having a pension plan, maxed out matching 401k plan, and just started maxing out my Roth IRA this year. When you are young and not making as much money a Roth IRA is a great investment after you max out your 401k. You put money in after taxes but you are not taxed when you take it out. The Roth IRA was designed for low income or middle class people. You need to make 110k or less if single or 140k or less if you are married. Take advantage of it when you can before you make to much money and do not qualify for it anymore.

As for how much money you should have in liquid funds (saving, money market, etc) they say anywhere from 3 to 6 months. That is were I am very weak. If I have moeny is saving I spend it on toys. I just opened up a money market fund and working towards putting money away each week to build up 6 months of salary. That should take a few years!!!

Both of you guys are doing very well if you are already thinking about retirement. :YEAH

 

yes sir. Roth IRA and 401K matched up to 12% pre tax, diversified through a number of fidelity funds, as well as a crazy number of stock options some vested and some vesting over the next 6 years. I been planning for retirement since I was sperm.

 

Good boy!!! Since I was stuck at home with the broken leg I've been meeting with tons of finical advisors. Some are smart and others are just trying to sell you anything. Teach and I decided to choose the one with the nicest car. lol

The only down side is all the money I use to waste is no longer there to waste. So now I have budgets for food and weekly expensives. No more $200 titty bar nights or TNT nights destroying 954s

 

BTW how you getting 12% matching? That is insane!!! Explan the 12%

BAE is up to 4%

 

It's broken down full match up to 8% and half matched for the next 4% if I'm not mistaken. And if I were to contribute nothing I think they atomatically put in 5% for me. Financial advisors are salesman, the guy with the nicest car is either the best salesman, or takes the biggest commisions.

and WTF no more tittie bars? Eff that.

 

Yeah - how do you expect the poor strippers to save for retirement???

 

I will post a more detailed reply tomorrow but I'm positive my particular pension plan "GUARENTTEES" me a percentage of projected income. Of course that is based on my yearly salary, length of participation to the plan, and age. I know the plan I have is one of the best available. I will post here tomorrow with more numbers & plan info.

All I know is a 401K couldn't possibly do what my plan does. And, if I leave my company tomorrow, they cut me a check for total vested (up to that point), free of penalties, if I invest into another retirment plan (like an IRA or 401K). So what are you talking bout there?

Now, let's say my Pension Plan is tied into my company (as you say), well what is so different than a 401K? 401K's are tied into the stock market and other company investments. You could potentionally invest well over $1,000,000 over the course of your lifetime into your 401K and if / when you retire, god forbide, we're in a state of recession, what happens to your lifetime investment? You have no money. People, especially over the past few years, have lost TONS of money in 401K.

Brian

 

There's potential for loss in all packages, nothing is garenteed. That's why it's recommended that you [wu tang financial]diversify yo funds *****[/wu tang financial] People that lost their shirts with enron and polaroid and things like that had their retirement plans fully relying on their company and not branched out to other investments areas. I don't know much about pensions but I know they all depend soley on the company itself which can be very dangerous. I do recall something about people losing thier full pensions in polaroid. A friend of mine here is 69 now and has to keep working here because he lost everything after 25 years of employee retirement investing in poloroid.

 

I agree. Opening a Roth IRA is a smart move. The only problem is you're limited to how much you can contribute. I think it's $3000 the first, second, and third year. $4000, the fourth, and fifth. Then $5000 there after... all the way to 65 years old. That isn't a ton of money really. Plus, again, because of this wonderful recession we're in, I think your rate of interest is like .5%.... which is JUNK! You're almost better off rolling pennies.

Brian

 

I do that too. Never spend change, just stock it away in a big 5 gallon water jug. I used to use a jar and would have 3-500 in it would fill up. Now I drop in 1 and 5's, sometimes 10's and 20's as well, that **** adds up quick and big.

 

Dude... I starting do that like 5 years ago. About once every 3 months I go to the coin counter across the street from my work and I end up having like $170. That **** adds up wicked quick!

Brian

 

Get a 5 gallon poland springs jug. You won't have to empty it. And don't use those coin star machines that charge you for your ****, roll it up and bring it to any bank and cash it in free of charge. This is probably the best saving technique ever. My father's had me doing it since I was like 6. If something cost $6.01 I break 7 and pocket the change.

 

exactly. I put my change in there like everynight. Those coinstar machines are fast. If I turn in $170 it charges me like $10 to do it. I don't mind. But i hear ya. I should just keep it.

 

i just see it as a -8% return on an investment. Maybe I should buy some coinstar machines and make 8% on everyone else's savings?

 

401k's are covered by ERISA, therefore the company cannot raid them when things are bad or they go under. They can however be frozen during litigation but eventually come through. Pension may or may not be covered, depends on the plan. As for financial advisors, anyone can call themselves that. Ask what licences they have, if they say 6 and 23, they are insurance salesmen. Series 7 is the big dog. 6 is almost there. CFP-certified financial planner-means they worked there butt off.

 

I want to get my series 7 and do something like that movie boiler room. "Who says money doesn't buy happieness, I drive a ferrari spyder, and I'm grinin' from ear to ****in' ear"

 

Wow! My company only contributes up to 4%.

 

SUCKER!!

 

We only get a 50% match on the first 6%.

 

I work for Budweiser and I get up to 6% matched with a 135% match rate by them!! SAWEEEET

P.S. I get all the beer I need to drink free until 65!