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Retirement with 401k


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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

I guess I am a different animal...I worked a LOT of hours, but I ALWAYS based my lifestyle on a 40 hour paycheck, when we sat down down to run the retirement numbers I just wanted my take home to equal a 40 hr week.

I do miss those 80+ hour checks, but I sure do not miss being out there. :D

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WIPartridge

There was a reply a few pages back that fit me to a T...I'm 32 years old, have been putting 6-10% into my 401k since I was 23, and will see a big benefit from the recent recesion in the long run.  the worse the market does the happier I am.  I'm buying low, and wish I was buying lower.  My co-workers all like to see the market go up, because they're making money on paper.  It's ludicrous to think that unless you're on the verge of retirement.  

We also were fortunate enough to get into our house before the market rebounded, although we took a big hit on the sale of the last one when I moved jobs.  It was a net gain though...lost $30k on that one, and have "made" 60k in equity in this one at current market price.  In the end, I think we're going to do just fine, and will be the beneficiaries of everything thats happened in recent years.  But, we've also worked our tails off, and have skipped a lot of " luxuries" that our friends have, in the name of financial stability, much as many others on here have described.  We've come to the conclusion that happiness and satisfaction in life is a mindset driven less by money than you would think on the surface.

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LostintheOzone

Divorce can wreck the best laid plans, retirement and otherwise, of both mice and men.

And that happens to about 50% of us. It happened to me. I was still trying to set enough aside when I retired about 2 years ago. I ended up with about 70% of what I had planned to have at retirement. I had been putting money into investments for 30 years and I lost a good part of that. So.... just keep that in mind and don't get too wrapped up in your finances. I think one should sock away about 15% of your income starting with your first paycheck and just maintain that all through your working life.

If you're lucky you will have enough to retire, if not, well just keep working until you fall over dead.  :D

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I think one should sock away about 15% of your income starting with your first paycheck and just maintain that all through your working life.

I just found my first paycheck stub from 1970 when I was 16 years old. Yes, I have a problem throwing things away.

As a bagboy at the local grocery store, my salary was $1.66 an hour and after taxes $50.71. I didn't sock away any retirement, by Uncle Sam took 5% of my gross for social security. He's been faithfully doing that for me for 44 years.

My wife and I sought out and worked hard at jobs that provided pensions for more than 35 years.  I invested most of a 401K I also had in my kennel business, which was always intended as my post retirement "job".

Our goal has always been to retire debt free and live within our means on pensions and social security. Dropping over dead with a million dollars in the bank has never been one of the goals.

Ken

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Greg Hartman

Divorce can wreck the best laid plans, retirement and otherwise, of both mice and men.

I gotta say that there is something VERY wrong with a divorce system that will strip a man who has been working and saving his whole life of way more than half of his assets right as he plans to retire to go a woman who has never held a job – and then he gets to pay alimony on top!  Not right!!

Especially not right when you consider what you knew when you got married at age 18 or whatever – other than the fact that you wanted to sleep with her, probably nothing – chances are you had no idea what you were signing up for.

To my mind, marriage should be a five year renewable contract.  At the end of each five year period either party can re-up on not as they choose.  If one or both choose not to re-up, then everything acquired during the marriage is split down the middle and each shares the support of the kids equally until age 18.  With a system like that there would be a lot more happy marriages.

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LostintheOzone

I gotta say that there is something VERY wrong with a divorce system that will strip a man who has been working and saving his whole life of way more than half of his assets right as he plans to retire to go a woman who has never held a job – and then he gets to pay alimony on top!  Not right!!

I have to agree. I was only married for 12 years but I lost 20% of my retirement. That wasn't the end of it either but I don't really want to reflect on it because it is what it is. Water under the bridge as my mom used to say. No matter what unfair condition befalls us we should always try to get on with life. Our time is precious and we need to make the most of it. I see people who have a lot less and are cheerful and making their way.

Have a plan and try to carry it out, but if it fails then do the best you can with the hand that was dealt. I truly feel blessed with what I have. We are financially secure and we are going into retirement ahead of the game.

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I'm sorry but I have to stick up for wives

My wife gave up a career and worked hard 24/7 ( still does and they are grown) raising our 5 kids, she is certainly entitled to half ( really much more IMO).

And furthermore I feel I owe her financial support until she passes which I sincerely hope happens after I do.

The idea that raising a family and running a household is not a job is laughable.

I would rather shovel coal 8 hours a day than be a Mom.

JMO

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My ex and I drafted our own divorce agreement.  Emailed it back and forth and mutually tweaked it until we both could live with it.

First paragraph says, "I leave your retirement alone, you leave mine alone." Fair enough.

She can retire in 2016 and I could have gouged her for part of her pension when she starts to draw, but she could have gouged 50% of my 401k back in 2007, so we both thought we should just let well enough alone.

Had she been a stay at home mom, I would have forked over her 50% without pause.

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PaFlyfisher
I'm sorry but I have to stick up for wives

My wife gave up a career and worked hard 24/7 ( still does and they are grown) raising our 5 kids, she is certainly entitled to half ( really much more IMO).

And furthermore I feel I owe her financial support until she passes which I sincerely hope happens after I do.

The idea that raising a family and running a household is not a job is laughable.

I would rather shovel coal 8 hours a day than be a Mom.

JMO

Couldn't agree more.

Also, there is a severe financial penalty paid by any parent who decides to be a stay at home parent should they have to re-enter the job market subsequent to a death or divorce. Good luck getting a job commensurate with your skills and previous experience after years out of the workforce. Such a person is behind in ways that will affect long term job prospects, upward mobility, and the top end pay and position one may reach prior to retirement.

This penalty can be corrected in divorce settlements that don't appear equitable at face value until the sacrifices being a stay at home parent has on empolyability and earnings is considered.

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I wonder how many guys out there regard divorce the same way they regard a Purdey?  You know you'd like one but you simply can't afford it!!  :D
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I wonder how many guys out there regard divorce the same way they regard a Purdey?  You know you'd like one but you simply can't afford it!!  :D

And like a Purdey, they cost a lot because they're worth a lot.

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I wonder how many guys out there regard divorce the same way they regard a Purdey?  You know you'd like one but you simply can't afford it!!  :D

And like a Purdey, they cost a lot because they're worth a lot.

In my case that's absolutely true.

And so today I have no Purdey.

But I do have an AYA No 2 plus others and a wonderful wife who shoots and hunts birds with me.

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I wonder how many guys out there regard divorce the same way they regard a Purdey?  You know you'd like one but you simply can't afford it!!  :D

And like a Purdey, they cost a lot because they're worth a lot.

In my case that's absolutely true.

And so today I have no Purdey.

But I do have an AYA No 2 plus others and a wonderful wife who shoots and hunts birds with me.

I've never had either and at my age I think I can safely say I never will!

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