Can you retire at Age 60?

[Feldenak]

Originally posted by: spidey07

Exactly. The 401k/pension stuff is just gravy. Like it isn't even there.

Heh, my 401k is all I've got.

I'll be either on my way to work, at work, or on my way home from work on the day I die.

 

[TXHokie]

$70k/yr now may be ok but in 20 years isn't gonna be much when gas is gonna be like $10/gal.

 

[spidey07]

Originally posted by: Feldenak

Originally posted by: spidey07

Exactly. The 401k/pension stuff is just gravy. Like it isn't even there.

Heh, my 401k is all I've got.

I'll be either on my way to work, at work, or on my way home from work on the day I die.

You're young...change it.

 

[DaveSimmons]

Originally posted by: child of wonder
Question for someone who knows.... when one retires I've heard that taxes get applied to your entire 401k savings. So does that mean when you retire Uncle Sam takes 20% or so of your 401k balance then charges you for the interest you live off of each year?

At age 59 you must start cashing out some of the money each year, but not all of it. You're only taxed on the part you take out of a 401k or traditional IRA each year, not on the rest of it still in the account.

A Roth IRA grows tax-free, so you pay nothing when you take the money out (unless you take it out before age 59 /1/2).

That's why people say you should:
1. contribute to 401k up to the % that an employer will match
2. max out your Roth IRA
3. then (if you can afford 1 & 2) max out your 401k
4. (after 1-3) start a normal non-tax-sheltered brokerage account to put towards early retirement

 

[Engineer]

By the way, for those that don't know, you can start taking distributions from your 401k at age 55 (not 59 1/2 like other retirement accounts) if you leave your company.

 

[Feldenak]

Originally posted by: spidey07

Originally posted by: Feldenak

Originally posted by: spidey07

Exactly. The 401k/pension stuff is just gravy. Like it isn't even there.

Heh, my 401k is all I've got.

I'll be either on my way to work, at work, or on my way home from work on the day I die.

You're young...change it.

Working on it. My wife and I are trying to save 10% of our monthly take home (right now in just an ING account).

I'm not as young as I'd like...I'll be 33 in March.

 

[everman]

Originally posted by: DaveSimmons

Originally posted by: child of wonder
Question for someone who knows.... when one retires I've heard that taxes get applied to your entire 401k savings. So does that mean when you retire Uncle Sam takes 20% or so of your 401k balance then charges you for the interest you live off of each year?

At age 59 you must start cashing out some of the money each year, but not all of it. You're only taxed on the part you take out of a 401k or traditional IRA each year, not on the rest of it still in the account.

A Roth IRA grows tax-free, so you pay nothing when you take the money out (unless you take it out before age 59 /1/2).

It's called a required minimum distribution.

One thing that I think people do not seem to be thinking about is what their life expectancy really is. Lets say you're 20 now, the current life expectancy is around 70 I think. But with advancements in medical technology over the next 30-50 years we could see current 20 year olds living a lot longer than 70, and I think having money to pay for that may be a big factor.

Personally I want my retirement funds generate enough income to support myself without needing to use the principle. I don't want to be caught having just enough for 70 and end up working at walmart when I turn 71.

 

[teckmaster]

I'm 28 and I've already retired once. I get a small check every month. Probably work till I die just because I hate being bored.

 

[spidey07]

Originally posted by: Feldenak
Working on it. My wife and I are trying to save 10% of our monthly take home (right now in just an ING account).

I'm not as young as I'd like...I'll be 33 in March.

There is no try. There is only do.

33? Buddy, you are in your prime earning years. Sure it would be fine to reverse the clock, but you're 33 now and you better get on it. I'm not a financial planner and don't pretend to be.

I can go on and on about how I wish I would have listened to my older friends and invested earlier in life like other threads. You're still young, start immediately.

I would be a millionaire at my age of 35 if I had only listened to my friends. Get on it dude. Do it tomorrow.

 

[NanoStuff]

Originally posted by: teckmaster
I'm 28 and I've already retired once. I get a small check every month. Probably work till I die just because I hate being bored.

Oh, you mean like health insurance fraud? That's one way to retire early.

 

[Googer]

Depressing...

 

[lokiju]

At my current rate I'll owe money and will retire the day I die

I need to get my ass in gear!!

This thread has been a great eye opener!

Many thanks!

:beer: :beer:

 

[DaveJ]

Chances are I won't have any financial problems in retirement, I'm currently 30 and saving ~18% of my gross income. What concerns me the most is obtaining adequate medical insurance coverage once I retire, which for me would be quite expensive if I had to do it on my own. Fortunately my employer offers generous medical benefits for retirees, starting at age 55. By then I'd hopefully be in a position to retire, and get a part-time job somewhere else. But I like working here so I might end up working till 60 or 65 anyway. Who knows...

All you guys here who are in your early or mid 20's, you're in the perfect position to retire well off (if not wealthy), if you think far enough ahead and start saving as much as you can as early as you can. Compound interest really makes a difference.

Dave

 

[crownjules]

Originally posted by: DaveJ
Chances are I won't have any financial problems in retirement, I'm currently 30 and saving ~18% of my gross income. What concerns me the most is obtaining adequate medical insurance coverage once I retire, which for me would be quite expensive if I had to do it on my own. Fortunately my employer offers generous medical benefits for retirees, starting at age 55. By then I'd hopefully be in a position to retire, and get a part-time job somewhere else. But I like working here so I might end up working till 60 or 65 anyway. Who knows...

All you guys here who are in your early or mid 20's, you're in the perfect position to retire well off (if not wealthy), if you think far enough ahead and start saving as much as you can as early as you can. Compound interest really makes a difference.

Dave

I'm almost 25 and have gotten into the habit of automatically saving 20% of each paycheck, plus whatever is leftover in my checking account at the end of the month. I just started up my Vanguard Roth IRA (went with VIVAX fund - aggressive large cap value fund) with a max contribution for '06. Unfortunately, I work as a contractor so I don't have a 401k plan offered to me otherwise I would be maxing that out as well.

 

[FlashG]

If I retire at 65 I have to live to 128

 

[Stuxnet]

I was actually running the numbers just the other day. If I contribute absolutely nothing else to my retirement (and the stock market doesn't implode), I'll retire at 65 with $1.2M.

My house will be paid off in just under 20 years, and our cars will be paid off in 3 years. When the cars are paid off, I'll be putting half of that savings toward retirement and the other half toward the house (so it should be paid off in ~15 years).

If I'm not retired long before 65, I will be very, very disappointed with myself.

edit - I'm 29

 

[child of wonder]

So if a guy has $2.3 million in 401k and retires, say he lives off 6% interest $138,000 per year. That $138,000 gets taxed as income leaving $117,000 or so left to live on (assuming 15% taxes)?

Is that right?

 

[FoBoT]

i'll be lucky to retire at 80

but i don't really care, when i "retire" from this company, i'll do contract work, 3-9 month jobs with some time off in between. i'll pick/choose as i feel like it, but i don't think i'll stop working until i am purty old

 

[chr6]

i thought retirement was the #1 killer of older adults

 

[crystal]

Unchecked the SS benefits because I am not sure I will get any $ by the time I am retire and watch the curve heads south. Not much for my heirs I could tell you that.

 

[Googer]

http://www.youtube.com/watch?v=oQ4SLkj0k7U