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amother




OP


Post  Wed, Sep 18 2019, 4:31 pm
Hi,

Please explain to me how retirement plans work.
I believe it's called 403b? Is that right?

Is there a certain percent of your income deducted from each paycheck and your employer matches it and then you can access those funds when you retire after 70?
And what is social security? Isnt that similar?

Thanks for explaining
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amother




Lavender


Post  Wed, Sep 18 2019, 4:43 pm
amother [ OP ] wrote:
Hi,

Please explain to me how retirement plans work.
I believe it's called 403b? Is that right?

Is there a certain percent of your income deducted from each paycheck and your employer matches it and then you can access those funds when you retire after 70?
And what is social security? Isnt that similar?

Thanks for explaining


All workers in the US pay into Social Security. If you're lucky, it will be around when you retire, and pay you certain benefits. I can expect to receive about $2500 a month, or $4400 with my husband.

Since I can't live on that, I will need more money through retirement savings (since I don't have a pension). That's often through a 401(k), where you contribute money pre-tax. Some employers do match a small percentage of your contributions, but not all. Obviously, because of compounding interest, the younger you save, the better. To maintain something close to my current lifestyle, and taking into account that I would not be paying any tuition at retirement and would no longer have a mortgage, I would need retirement savings of about $2 million at retirement. Plus social security.
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amother




OP


Post  Wed, Sep 18 2019, 4:46 pm
amother [ Lavender ] wrote:
All workers in the US pay into Social Security. If you're lucky, it will be around when you retire, and pay you certain benefits. I can expect to receive about $2500 a month, or $4400 with my husband.

Since I can't live on that, I will need more money through retirement savings (since I don't have a pension). That's often through a 401(k), where you contribute money pre-tax. Some employers do match a small percentage of your contributions, but not all. Obviously, because of compounding interest, the younger you save, the better. To maintain something close to my current lifestyle, and taking into account that I would not be paying any tuition at retirement and would no longer have a mortgage, I would need retirement savings of about $2 million at retirement. Plus social security.


Thank you!

1 why won't ss be around when I retire? Why do you say if I'm lucky?
2 what's pension and how do I get it?
3 what other retirement funds are there? Other than 401k?
4 why doesn't my work offer me anything? Is it optional for them?
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JessicaR




 
 
 


Post  Wed, Sep 18 2019, 4:48 pm
403b is a retirement fund where you can put money from each of your paychecks and that money that you put into the fund is tax free. The benefit is that you arent paying taxes on that money now and when you retire you will obviously have a much lower income and will only have to pay minimal taxes.
Not all employers match. Some do and some dont. Ask you HR department.
You decide how much you want to contribute each month. There is no minimum but the IRS places a cap at $19000 annual from employee. Employer can match though... above age 50 the amount is 25k.

Social security is a government program that sends you monthky checks after retirement based on what your income was before retirement. You pay towards that fund on every paycheck.
However, do not count on social security money for retirement as A- its too little. B- the program will go bankrupt very soon
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amother




Honeydew


Post  Wed, Sep 18 2019, 4:51 pm
amother [ OP ] wrote:
Thank you!

1 why won't ss be around when I retire? Why do you say if I'm lucky?
2 what's pension and how do I get it?
3 what other retirement funds are there? Other than 401k?
4 why doesn't my work offer me anything? Is it optional for them?


1- read the news. The program isn’t sustainable.
2- most private companies dont offer pension olans. Public workers such as teachers, cops, firefighters, ems etc etc receive pension plans

3 many. IRA - you do yourself 403 b etc

4 - maybe they do. Ask. And it isn’t mandatory for small businesses to offer retirement plans.
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amother




OP


Post  Wed, Sep 18 2019, 4:55 pm
amother [ Honeydew ] wrote:
1- read the news. The program isn’t sustainable.
2- most private companies dont offer pension olans. Public workers such as teachers, cops, firefighters, ems etc etc receive pension plans

3 many. IRA - you do yourself 403 b etc

4 - maybe they do. Ask. And it isn’t mandatory for small businesses to offer retirement plans.


Thank you!

2 what is pension plans?
How does it work?
My husband is a rebbe and as far as I know doesn't have anything and they don't offer anything
Is that the norm in yeshivos?
I am bookkeeper in a different school and they don't offer anything either.. I am getting worried about our retirement
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baby12x




 
 
 


Post  Wed, Sep 18 2019, 11:53 pm
Depending on your situation you may decide to open a Roth IRA in the form of targeted retirement fund.
That is the easiest and most basic, since you don't seem to be very financially savvy.

Basically, you go to one of the big investment firms: Vanguard, T.Rowe Price etc and pick the year you expect to retire and then max it out.
Google it. Its simple and will get you started
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