Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-17-2021, 04:14 AM   #21
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,534
From one government retiree to a soon-to-be government retiree, that pension check is going to feel a lot like a paycheck. Shows up the same day every month. Annual increases feel just like the negotiated increases. If you can afford it now, you can afford it then (I walked when pension = take home). But it feels awfully nice to have rolled my 'measly' 80k 457b (like a 401k) into an IRA that's now 408k. The only issue with rolling it over is that you can draw on it immediately on retirement if left as a 457 / 403 but if converted to an IRA you need to wait until 59.5


Adding; I was converting from Tier 2 to Tier 3 so needed to cover underfunded amt which was why 1/2 my gross salary was diverted to the pension for 5 yrs. That's why the pension = take home
gayl is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-17-2021, 04:30 AM   #22
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 728
Thanks Gayl... DW gets her deposit the last day of the month, I did the same for years, but they went to every 2 weeks about 7 years ago.
My retirement check will be about $700 MORE than my actual current take home.
Been packing the 401K
old medic is offline   Reply With Quote
Old 04-17-2021, 04:35 AM   #23
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,534
You're golden!!

Are you rolling to Schwab, Fido, or Vanguard? I only picked Schwab bc I like the option of walking into an office if I feel it's necessary. Plus they had a lot of seminars on investing / retirement etc
gayl is offline   Reply With Quote
Old 04-17-2021, 04:42 AM   #24
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 728
Not sure... thats why i'm researching and asking...
Just joined over at Boglehead
old medic is offline   Reply With Quote
Old 04-17-2021, 04:54 AM   #25
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,534
Which brick & mortar is closer: Schwab or Fidelity? Vanguard doesn't have local offices. All 3 seem to be about the same with online services.

Then it's what to put it in as you'll probably get a check with your name / new institutions name on it to deposit in which ever you choose. We're different because our monthly expenses aren't dependent on investments. IMHO go long as in larger % in total stock market index (Schwab = SCHB. Fidelity = FZROX. Vanguard = VTI).

I set up a separate brokerage account (your 700m?) to play / invest with
gayl is offline   Reply With Quote
Old 04-17-2021, 05:36 AM   #26
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 728
B&M of either are over an hour away, same 2 cities in either direction.
Your correct in the difference. Its nice to have the nest egg (or 3) on the side thats continuing to build. I'm now wondering if I can roll some of my 401K out and let the rest sit.
old medic is offline   Reply With Quote
Old 04-17-2021, 06:36 AM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 32,246
Quote:
Originally Posted by old medic View Post
One of the things Im trying to figure is what to do with the 401K money. I dont want to roll it into my retirement account. I can leave it in the Prudential account but can't add to it once I retire. Will have a second chance when the wife retires with hers..
Is there a reason why you don't want to roll it into your retirement account?

Unless your 401k has a good stable value fund or really good, low-cost investment choices I would roll it into a tIRA if you are over 55.... Vanguard or Fidelity or Schwab would be fine.

What is your 401k invested in now?

Prudential is the administrator for my former employer's pension plan... good company but their service pretty much sucks.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 04-17-2021, 07:09 AM   #28
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 728
Quote:
Originally Posted by pb4uski View Post
Is there a reason why you don't want to roll it into your retirement account?
Prudential is the administrator for my former employer's pension plan... good company but their service pretty much sucks.
It only adds a small amount to my check, and I loose the future gains.
FC shows me loosing out bigtime on future growth...
old medic is offline   Reply With Quote
Old 04-17-2021, 08:42 AM   #29
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,534
Quote:
Originally Posted by old medic View Post
B&M of either are over an hour away, same 2 cities in either direction.
Your correct in the difference. Its nice to have the nest egg (or 3) on the side thats continuing to build. I'm now wondering if I can roll some of my 401K out and let the rest sit.
IMHO I would roll out all of it as well as all of hers when she retires to the same place. There is no benefit in leaving some of it behind
gayl is offline   Reply With Quote
Old 04-17-2021, 11:09 AM   #30
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 728
Quote:
Originally Posted by gayl View Post
IMHO I would roll out all of it as well as all of hers when she retires to the same place. There is no benefit in leaving some of it behind
I was looking at it as a nest egg, more stable funds slow growth, and a separate IRA that I can add to and take some chances on.
I have a lot of learning to do over the next few months...
old medic is offline   Reply With Quote
Old 04-17-2021, 11:13 AM   #31
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 32,246
Quote:
Originally Posted by old medic View Post
It only adds a small amount to my check, and I loose the future gains.
FC shows me loosing out bigtime on future growth...
Oh, I thought where you said retirement account that you meant a tIRA.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 04-17-2021, 11:15 AM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 32,246
Quote:
Originally Posted by old medic View Post
I was looking at it as a nest egg, more stable funds slow growth, and a separate IRA that I can add to and take some chances on.
I have a lot of learning to do over the next few months...
That's a bit silly... can't you do the same thing within an IRA? Have $x in investments that are stable and $y in investments that are riskier? You can easily do that in a single tIRA account.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 04-17-2021, 11:39 AM   #33
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,534
Ok. But you can't add to an IRA unless you have earned income. Maybe try the core / explore philosophy? Use this IRA as your core ..... put aside a little out of your overage into a brokerage account as your explore investments? You've got 8 months to figure it out ..... plenty of time

When I moved everything over to an IRA at Schwab they suggested that I keep this safe and sound for when I eventually needed to draw upon it in retirement. They were not familiar with government retirees like you and I who have a stable pension with a COLA .Then I ran into a really smart guy there (Lou Mercer) who taught me the core / explore mindset. IRA = core, safe & sound broad based low expenses ETFS buy & hold. BROKERAGE = explore, learn, individual stocks & eventually options. He actually set up my screens. Introduced me to 3 ways to pick stocks: fundamentals, technical, behavioral
gayl is offline   Reply With Quote
Old 04-17-2021, 11:46 AM   #34
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 728
Quote:
Originally Posted by pb4uski View Post
That's a bit silly... can't you do the same thing within an IRA? Have $x in investments that are stable and $y in investments that are riskier? You can easily do that in a single tIRA account.
Like I said... I've got a lot of learning to do...
old medic is offline   Reply With Quote
Old 04-17-2021, 11:52 AM   #35
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 728
Great info Gayl. Its nice to have a paycheck and still have the investment savings as back up/play the market.
old medic is offline   Reply With Quote
Old 04-17-2021, 11:56 AM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 8,708
Quote:
Originally Posted by old medic View Post
One of the things Im trying to figure is what to do with the 401K money. I dont want to roll it into my retirement account. I can leave it in the Prudential account but can't add to it once I retire. Will have a second chance when the wife retires with hers..
Well, thing one IMO is that simplicity is better. So fewer accounts is better. Thing two is what I advise, including to my Adult-Ed investing class, is to have your account where your type of account is their main business. IOW never with insurance companies, banks, or big investment banks. For the typical long-term investor here, that means Schwab, VG, or Fido. For the traders that probably means a firm more oriented to that kind of investor. E-Trade? Robin Hood? For example, Morgan Stanley has reported "Wealth Management" revenue of $3.5B IIRC, with profit margins over 25%. For them we are just little cash cows to be milked. Their wealth management interests are in the high NW individuals and nonprofit endowments with big $ AUM numbers.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 04-17-2021, 01:11 PM   #37
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,534
Quote:
Originally Posted by OldShooter View Post
Well, thing one IMO is that simplicity is better. So fewer accounts is better. Thing two is what I advise, including to my Adult-Ed investing class, is to have your account where your type of account is their main business. IOW never with insurance companies, banks, or big investment banks. For the typical long-term investor here, that means Schwab, VG, or Fido.
Exactly!!
gayl is offline   Reply With Quote
Old 04-18-2021, 09:52 AM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 9,263
Quote:
Originally Posted by old medic View Post
Like I said... I've got a lot of learning to do...

You talked about doing an occasional part time shift.. this money would be ideal to drop into either an IRA or a Roth..
ivinsfan is offline   Reply With Quote
Old 04-18-2021, 03:16 PM   #39
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 728
Quote:
Originally Posted by ivinsfan View Post
You talked about doing an occasional part time shift.. this money would be ideal to drop into either an IRA or a Roth..
Or buy toys... got my eye on a side by side.
old medic is offline   Reply With Quote
Old 04-18-2021, 03:24 PM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 9,263
Quote:
Originally Posted by old medic View Post
Or buy toys... got my eye on a side by side.
Do what you want.. the comment was you can't contribute to an IRA without earned income...
ivinsfan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Appreciate Some Florida Guidance JPatrick Travel Information 19 02-28-2012 04:51 PM
Need some help, guidance, suggestions, information, etc. frayne Health and Early Retirement 8 06-10-2010 05:34 AM
23 years old, need some guidance bdon22 Hi, I am... 9 09-30-2008 07:12 PM
Hello, I'm ApeX from the MidWest -- military & need some guidance. ApeX Hi, I am... 12 01-07-2008 08:55 PM
Need some guidance honydonk Young Dreamers 17 09-25-2007 07:34 AM

» Quick Links

 
All times are GMT -6. The time now is 09:10 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.