Today I have a boring but important topic....
Saving for retirement.
My dad has always stressed the importance of saving for retirement, but a phone call from my financial advisor yesterday has me thinking more about this. My school district has pension funds set up for all employees.....each pay period a certain percentage is taken from our salary and they put in a certain percentage as well. In addition to that, after 3 years of employment, the district will also contribute a whopping $600 per year toward our personal 403 (B) plans.
I have been contributing to my 403B plan since my very first year of teaching and I also have an additional Roth IRA that I contribute to. This is in addition to my pension and social security contributions. After all of my deductions, I only bring home 50% of my earnings each paycheck. It really stinks not having that $$ coming to me on payday, but I think it is well worth the sacrifice. Its been nice getting my monthly statements and watching my money grow. I am hoping that when I retire, I will be able to live comfortably!!!
It always amazes me how UN-prepared so many people are for their retirement. By now all of you Americans must know that Social Security may not have any money left by the time we are ready to retire, and even if there is money left, the amount you will receive each month is not going to be nearly enough to live on.
I am curious how many of you contribute regularly to your retirement funds and what your work offers as far as pensions, retirement funds, etc. Do they match or pay a specific percentage? Is there a maximum amount they will contribute? Do they give you shares in the company, if available? I am sure things are much different in the corporate world than they are in the public sector.
Sorry this is a boring topic, but I really feel it is an important one. Hopefully this post will inspire some of you to get on the ball!
The sooner you start saving, the better off you'll be!
******************************************************************************************
Other TFT bloggers this week:
i am all about saving for retirement! the sooner - the better!
i've been working for over 6 years for the government. i contribute to pera (public employees retirement account) and to a deferred comp. program. the employeer matches on our pera. my husband has an even sweeter deal at his job. they can contribute up to like 36% into their 401k plans and the company will match up to a certain percent of that. it is nice to see our money grow in these plans while we think of 'early' retirement!
it is scary to me when people my age haven't began to save or even think about their retirement. i had good advice from my dad growing up so i am super thankful for that. great topic!
Posted by: jenny | February 07, 2008 at 10:40 AM
this is a good TFT. everyone should really be thinking about it. i have a 401K and profit sharing plan currently through my employer. the max match i get is 7% and the profit sharing is quarterly at-will, i believe. basically when my employer has made a ton and is feeling generous. i worry about having the funds to able to continue contributing to a plan or something after i'm no longer employed with an employer that has a plan set up. this is something that will be revisited very soon with my husband and i. it IS very scary to think about getting to retirement and not having anything put away!
Posted by: jessica | February 07, 2008 at 11:28 AM
This is an excellent topic Kristy! And I agree, we all need to be well prepared for retirement age! I contribute regularly to mine. It's certainly a piece of mind.
Posted by: Maria | February 07, 2008 at 02:43 PM
I like this post :) I work as a financial advisors assistant @ an investment services firm & it is amazing how many people do not think of their futures.
Sounds like you are on a very smart track & staying that track, as you said, you should be able to live a comfy life in retirement :)
Posted by: Lina | February 08, 2008 at 03:38 AM
I am Horrible when it comes to this! Good thing my husband has a plan for us and is a Big Saver! Although, I do need to start saving on my own too.
GOOD TOPIC! Now, you got me a little bit worried.
Posted by: Denise H. | February 08, 2008 at 01:10 PM
Well, you know Brian. We are "savers" because of him. He does a great job planning for our future. We are well on our way to a comfy retirement in some exotic place! I think it's so very important, I don't think people quite understand since it's so far out. Of course it's nice to have more money now, but do you really want to be depending on our gov't in the future? Probably not!
Posted by: michelle | February 08, 2008 at 03:16 PM