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Retirement with 401k


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One thing that I tell the youngsters who are still wet behind the ears:

Save as much as can as aggressively as you can to build up principal because once you hit the $100K, $500K and then $1mill marks you really get a chance to see how money can work for you.  Forget the new stereo, rims, etc.. get your finances in order and the rest comes easier.

A mentor of mine also stated, once your money starts making you more than what you can save consistently, you are on a good course as long as you stay disciplined.

Winner winner chicken dinner!!

Financial independance is when you work when you wantto tnot because you have to.

Or

When your unearned income meets or exceeds your earned income!

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PaFlyfisher
One disturbing theme from this thread is the idea that many don't plan on retiring, or only doing so partially while continuing to work in some capacity. While we have every right to continue to work as long as we please, the economic impact of people not fully leaving the workforce as they age will be profound, and likely be felt most negatively by younger workers.
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Dakota Dogman

Can't speak for others on that Bede, it isn't that I wouldn't like to retire... WOULD LOVE TO! but the reality is, on an honest preachers pay scale, full retirement is a bit of a pipe dream.  Next to no employer benefits, no SS... and only able to put aside so much for tomorrow & still feed the troops today.  I have a LONG way to go before the wife will have even a little nestegg.

Add to that a family history of heart issues & walla... retirement is for the lucky & Blessed.

God Bless,

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Tiger MT's Carter
retirement is for the lucky & Blessed.

Maybe for some, retirement involved luck. My wife and I worked our rear ends off for 35 years. We worked about every hour of OT that was ever offered, worked whatever shift we had to and invested very extensively for 24 years. I see nothing but hard work for us to reach retirement.

I am thankful for the most part our health was good so we could work and retire, that I would consider blessed & lucky.

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Dakota Dogman
retirement is for the lucky & Blessed.

I am thankful for the most part our health was good so we could work and retire, that I would consider blessed & lucky.

That is what I was attempting to get at.

Watched my dad work his tail off for years & buried him at 62.

His younger brother, who never did a bit more than dad & has always been worse in heath, is now 72.  Go figure.  ???

Watched other friends like some on here earn retirement only to loose it to health issues (sure they are no longer working, but not exactly what we are looking for when we talk retired.)

Then I have my wife's grandpa... 96.  WWII Vet of - N Africa, Invasion of Sicily, Black Forest, Battle of the Buldge, D-Day & more.  1 of 6 from his platoon to come home.  Still asks himself why he got to come home?  Come home to be a steel mill mechanic.

I do not intend to take away from those who put in their blood sweat & tears to get to the point of retirement.  Then again, I think we all know some who put in that same amount of work & never got ahead in life for various reasons, some beyond their ability to control.

On the same tone... I don't see retirement (esp. mine) as a constitutional guarantee or God given right.

So perhaps we can say retirement is where hard work, good planing & blessing all come together in one?  

God bless,

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I have to agree with the comment "when your unearned income meets or beats your earned income its time to get out."

I am lucky to have been in a retirement plan that really worked.  The only thing that I dont like is my SS falls under a "wind fall" line and my monthly amount, which I payed into SS prior to starting my teaching work, can be cut back by as much as 90%.  I think that sucks.... and they even say its to help out the people who made less... I am waiting to see how much they will cut me in next months check.

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I have to agree with the comment "when your unearned income meets or beats your earned income its time to get out."

I am lucky to have been in a retirement plan that really worked.  The only thing that I dont like is my SS falls under a "wind fall" line and my monthly amount, which I payed into SS prior to starting my teaching work, can be cut back by as much as 90%.  I think that sucks.... and they even say its to help out the people who made less... I am waiting to see how much they will cut me in next months check.

I'm not sure I agree with the unearned/earned equation...

Your income retired can be quite a bit less than your working wage. You are no longer saving for retirement, your tax burden should be less, and you do not have the expense of just going to work everyday. YMMV

What is the SS windfall?

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I have to agree with the comment "when your unearned income meets or beats your earned income its time to get out."

I am lucky to have been in a retirement plan that really worked.  The only thing that I dont like is my SS falls under a "wind fall" line and my monthly amount, which I payed into SS prior to starting my teaching work, can be cut back by as much as 90%.  I think that sucks.... and they even say its to help out the people who made less... I am waiting to see how much they will cut me in next months check.

I'm not sure I agree with the unearned/earned equation...

Your income retired can be quite a bit less than your working wage. You are no longer saving for retirement, your tax burden should be less, and you do not have the expense of just going to work everyday. YMMV

What is the SS windfall?

i dont have one client who wants to live on less!

There is a big different bewtwen needs and wants.

And trust me, the "wants" always wins

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Of course there is an element of luck in life, but planning supersedes luck for most. And then you work the plan. I do believe though a person should continue saving acorns even after retirement. This economy is a house of cards.
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Can't speak for others on that Bede, it isn't that I wouldn't like to retire... WOULD LOVE TO! but the reality is, on an honest preachers pay scale, full retirement is a bit of a pipe dream.  Next to no employer benefits, no SS... and only able to put aside so much for tomorrow & still feed the troops today.  I have a LONG way to go before the wife will have even a little nestegg.

Add to that a family history of heart issues & walla... retirement is for the lucky & Blessed.

God Bless,

Why will you have no Social Security?  I take it you are an ordained ministry of some sort.  Are members of the clergy, self employed or otherwise, exempt from paying Social Security taxes?

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I believe ministers are treated as self employed for social security tax purposes.  If the employer determines they qualify for clergy tax status, then they can choose to opt out of social security if they claim they are conscientiously opposed to public insurance with respect to services performed as a minister because of their individual religious considerations or because of the principles of their religious denomination.
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Answer:

Settum, my current retirement income is actually greater then my most recent work income due to lack of state tax and the basis for the dollars paid via my anuity.  There is a good deal of discussion, law suits etc on pension reform in Illinois, some regarding COLA adaptations.  Those will take years to work out.  Mean time I am good...... 

My retirement via our State University Retirement system was past maxed out.  My anuity alone after Fed tax (we dont get state taxed on it) was based on my average for my three highest paid years of service which were quite high with overload pay etc.  So, I am making a bit more then I was when I was working full time with no state tax to pay and my fed tax being deducted at the 0 dependent rate which will likely give me a refund come tax time.  Additional money from retirement (over payment to the plan) has been passed to IRA situations from which I can/will draw as I wish.

My outside investments or funny money were/are quite good including realestate and stock portfolio and I went out with almost no debt to speak of.

Currently I am making slightly more then I was when I was employed.  Oh, yea, then there is the fact that I am employed part time as a coach and adjunct professor which adds to that.....

The "windfall" as explained to me is an adjustment in your SS benifit if you retired with an anuity or some special state retirement system that did not pay in SS which ours did not.  The problem I have is that 90+% of my SS base comes from work prior to the onset of my teaching position and even so I will lose quite a bit of my SS benifit dollars.

I dont know if that explains it well but perhaps one of the CPA's on here can explaine it better.

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Dakota Dogman

its something like that thirdbite... been so long since those decisions were made I'm afraid I don't remember the details, just the end result.  For clarification, it is only "ministry" income that it effects... not the substitute teaching, coaching, wood working business, etc.

Paralleli - yeh, guilty as charged, country preacher... I'm the guy who takes the little churches so far out of the way everyone else is not interested

I may be wrong, but i kinda expect that this too will be forced to change in the not to distant future. Expect to be brought back into the SS fold as part of the "keep it alive plan"...

God bless,

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Answer:

Settum, my current retirement income is actually greater then my most recent work income due to lack of state tax and the basis for the dollars paid via my anuity.  There is a good deal of discussion, law suits etc on pension reform in Illinois, some regarding COLA adaptations.  Those will take years to work out.  Mean time I am good...... 

My retirement via our State University Retirement system was past maxed out.  My anuity alone after Fed tax (we dont get state taxed on it) was based on my average for my three highest paid years of service which were quite high with overload pay etc.  So, I am making a bit more then I was when I was working full time with no state tax to pay and my fed tax being deducted at the 0 dependent rate which will likely give me a refund come tax time.  Additional money from retirement (over payment to the plan) has been passed to IRA situations from which I can/will draw as I wish.

My outside investments or funny money were/are quite good including realestate and stock portfolio and I went out with almost no debt to speak of.

Currently I am making slightly more then I was when I was employed.  Oh, yea, then there is the fact that I am employed part time as a coach and adjunct professor which adds to that.....

The "windfall" as explained to me is an adjustment in your SS benifit if you retired with an anuity or some special state retirement system that did not pay in SS which ours did not.  The problem I have is that 90+% of my SS base comes from work prior to the onset of my teaching position and even so I will lose quite a bit of my SS benifit dollars.

I dont know if that explains it well but perhaps one of the CPA's on here can explaine it better.

http://www.socialsecurity.gov/pubs/EN-05-10045.pdf

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retirement is for the lucky & Blessed.

Maybe for some, retirement involved luck. My wife and I worked our rear ends off for 35 years. We worked about every hour of OT that was ever offered, worked whatever shift we had to and invested very extensively for 24 years. I see nothing but hard work for us to reach retirement.

I am thankful for the most part our health was good so we could work and retire, that I would consider blessed & lucky.

I did the same, even made some "mistakes" like owning Worldcom in a IRA when it went kaput. Cant even deduct a loss (IRA).

I ended up ok but because of the work ethic I developed, having no debt,  (and living a conservative lifestyle) I am still part timing because I LOVE IT.

My wife and I are in our mid 60's and finding health issues popping up more often. Glad to have decent health coverage between Medicare and private insurance.

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