Anonymous
06/02/2014 15:56
Subject: Re:If you have a pension, do you max out retirement savings too?
Yes. I don't think it is possible to save too much for retirement.
Anonymous
06/02/2014 15:54
Subject: If you have a pension, do you max out retirement savings too?
Fed here, with 18 years experience.
I'd love to max out my TSP contributions, but, like a previous poster, I live in the real world and also have to save for kids' college, pay the mortgage, etc.
I save 5%, get the 5% match, and figure between that and the pension I am doing better than most.
Based on my calculations, I am on target to retire at 60 - not rich, but comfortable with no major financial worries.
I'd love to max out my TSP contributions, but, like a previous poster, I live in the real world and also have to save for kids' college, pay the mortgage, etc.
I save 5%, get the 5% match, and figure between that and the pension I am doing better than most.
Based on my calculations, I am on target to retire at 60 - not rich, but comfortable with no major financial worries.
Anonymous
06/01/2014 21:05
Subject: If you have a pension, do you max out retirement savings too?
TSP is a great investment option and I have always maxed that out. I think it will be needed to supplement FERS.
Anonymous
06/01/2014 19:41
Subject: If you have a pension, do you max out retirement savings too?
social security will be there for everyone unless the rich right wing a$$holes convince people there's a problem that needs to be "fixed".
SS has been about 30 years away from "insolvency" for 30 years, and even if it went "insolvent" it could still pay about 3/4 of scheduled benefits.
SS has been about 30 years away from "insolvency" for 30 years, and even if it went "insolvent" it could still pay about 3/4 of scheduled benefits.
Anonymous
06/01/2014 16:39
Subject: Re:If you have a pension, do you max out retirement savings too?
My husband and I are feds. I expect to work as a fed long enough to get some kind of pension (i.e. 5+ years), but not sure I want to spend my entire career here.
Right now we save 10% of pre-tax income (more than needed to get the 5% match) in TSP, 4% post tax into Roth TSP and max out our Roth IRAs at Vanguard each year (about 11% of our after-tax salaries). This is not enough to max out our annual contributions. We just can't afford that and I'm not sure I want to save more. I think I will increase charitable giving before I increase our retirement savings. We plan for retirement assuming that we won't have any kind of pension or Social Security. But we are not planning for a lavish retirement. If we do get pension or Social Security, then bonus.
Right now we save 10% of pre-tax income (more than needed to get the 5% match) in TSP, 4% post tax into Roth TSP and max out our Roth IRAs at Vanguard each year (about 11% of our after-tax salaries). This is not enough to max out our annual contributions. We just can't afford that and I'm not sure I want to save more. I think I will increase charitable giving before I increase our retirement savings. We plan for retirement assuming that we won't have any kind of pension or Social Security. But we are not planning for a lavish retirement. If we do get pension or Social Security, then bonus.
Anonymous
06/01/2014 14:05
Subject: Re:If you have a pension, do you max out retirement savings too?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Pension will be around 14k/month (private) or lump sum of low 7 figs.
Max out two 401ks and 2 Roth IRAs.
Save another 75k per year in taxable accounts.
Hoping we will be ok.
Bullshit. In 2013, the modified AGI limit for a married couple filing jointly was 188,000. Yet you're claiming to pay $36,000 pretax to your 401ks , and another 75,000 in after tax savings? That's a minimum of 136,000 in AGI. You're telling us you live on 53,000, and save another 10,000 of that into a Roth?
Bullshit.
Back door roth. It's $5500/year per person, regardless of agi. 401k max is 17,500 per person for a max of 35 k pretax.
You're clearly not up to date on tax law or even Roth contributions.
I'm fully aware of a backdoor Roth, thanks. That little nugget of information is an important one in this context. By not mentioning it, you are giving the false impression that you are much more frugal than you are. Whether that's to toot your own horn on an anonymous forum, or because you lack a fundamental understanding of the point being discussed is anyone's guess.
And to be clear, you are not maxing out a Roth. You are maxing out a traditional IRA, and taking advantage of a tax loophole to convert it to a Roth.
Want some cheese with that whine? You sound like an enlightened liberal
Anonymous
06/01/2014 13:31
Subject: Re:If you have a pension, do you max out retirement savings too?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Pension will be around 14k/month (private) or lump sum of low 7 figs.
Max out two 401ks and 2 Roth IRAs.
Save another 75k per year in taxable accounts.
Hoping we will be ok.
Bullshit. In 2013, the modified AGI limit for a married couple filing jointly was 188,000. Yet you're claiming to pay $36,000 pretax to your 401ks , and another 75,000 in after tax savings? That's a minimum of 136,000 in AGI. You're telling us you live on 53,000, and save another 10,000 of that into a Roth?
Bullshit.
Back door roth. It's $5500/year per person, regardless of agi. 401k max is 17,500 per person for a max of 35 k pretax.
You're clearly not up to date on tax law or even Roth contributions.
I'm fully aware of a backdoor Roth, thanks. That little nugget of information is an important one in this context. By not mentioning it, you are giving the false impression that you are much more frugal than you are. Whether that's to toot your own horn on an anonymous forum, or because you lack a fundamental understanding of the point being discussed is anyone's guess.
And to be clear, you are not maxing out a Roth. You are maxing out a traditional IRA, and taking advantage of a tax loophole to convert it to a Roth.