I'm still navigating the pension calculation process, but I understand that cost of living adjustments (COLAs) play a significant role in maintaining our standard of living throughout retirement.
I’m 62 , nearing retirement, but my plans are in disarray. I have a 30k annuity and a depleted 401(k) with only 150k left, leaving me uncertain about my financial future. Would consulting a financial advisor be wise to get my retirement plans back on track?
Given your concerns, consulting a financial advisor is a great step. They can help optimize your funds, making your money work for you. Considering your 401(k) depletion, delaying retirement slightly might also be wise. This could provide additional time to replenish your retirement savings.
I have heard how they can help you make the best decisions. Honestly, I'm worried about losing more money. The thought of working in retirement to make ends meet is unsettling.
And what if that is all you have, even with SS you may not have enough to retire with. If you opt to work with a financial adviser, Dyor, make sure they are certified from AARP or FINRA.
It's essential to find a fiduciary advisor who is legally bound to prioritize your interests and avoid conflicts of interest. My spouse and I work with Glen Howard Chester, a retirement planner recommended by Danielle Dimartino Booth.
Under his guide, we've diversified our investments across traditional IRA and individual brokerage accounts, mirroring his master portfolio. Our investments have grown by 74% in the past year, and he rebalanced our portfolio at the start of the year, helping us maintain a cautious approach with cash reserves amid market uncertainty.
My wife and I will both have National Guard pensions at age 60 and Fed civil service pensions. Due to our 6 yr age difference, we will have a lower income period when we retire in 2028. I will be drawing my mil pension and begin drawing my FERS pension that year. She will have 3 more years before she can draw either. We haven't met with a financial planner yet, but our current strategy is to draw heavily from my traditional TSP for world travel before she begins drawing to avoid having to do ROTH conversion. When I reach age 70, we will be receiving about 12K/month in Pensions and SS.
Damn! Where were you working where you could retire at age 44 with $60K? Cause I retired in 2020 from a Boston suburb at age 54 with $53K and I was an officer for 11 years. We do have COLA but it's fairly conservative.
Yes please do more around this topic and how about instead of Roth conversions for early retirees (pre SSI) drawing down 401K assets and putting aside in a brokage account
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
I have 2 pensions both with COLAs {both LE related} along with DROP account that pays till age 89...I am 58 and currently investing in a 457 plan and will be done working at 63 and take SS then. If I start up a Roth, my understanding is none of the money can be touched for 5 years, is that correct? Informative video Thank you..
How does the pension affect availability of affordable health care? It seems that when I retire with my pension, I won’t be eligible for the lower cost Medicare plans that someone with tax advantaged income could strategize out, but will be much more out of pocket because of the regular income. Am I correct or way out in left field? I am saving as hard as I can in Roth’s, both IRA’s and a 403b, but I’m afraid my pension will come back to bite me with health care costs…
just retired with a police pension and i tried to school all the young officers on created multiple streams of income for yourself when you retire so if you dont want to work again you dont have too. pension/457/taxable account in high yield ETF. 3 streams aint bad, could have been better.
How to plan how much to save Roth IRA when you have a pension based on income percentage, considering your income contribution to your pension to retirement savings, when you can pull from retirement if pension starts in 40s ext,
If you don’t have a COLA on your pension but your pension covers your expenses now, how do you calculate a lump sum needed for future expenses that rise with inflation (what is the equivalent to the 4% rule). Sure we need to think about inflation… but no one is talking about a rule of thumb for pensioners who don’t have social security (or are close to having no social security because of WEP).
Want to know why home taxes go up every year in the county across America....Yeah stll the gov pensions. Even the poor with a home paid for who dont have a pot to piss in has to pay for pensions.
Change your terminology. I’m not lucky to have a pension, I’m fortunate. There is a huge difference. I made financial and personal sacrifices for my pension. My income took off after retiring from the military. I once had a director that was surprised that I was receiving a military pension at 45 years old. He said, “that’s almost like ripping off the government”! He was college educated and of age to join the military. I suggested to him, the recruiter is open. Go down, sign up and spend 20+ years serving. When you retire look me up after receiving your first pension check. Then tell me how much you feel like you’re ripping the government off? Needless to say he never took my well meaning advice. Fortunate, not lucky!
You fail to mention the biggest concern about pensions ... that the pension plan goes up in smoke. For company-sponsored pension plans, there's a risk that the company goes bankrupt. Similarly, there is a risk that the company is bought out. For government-sponsored plans, there's a risk of the government going bankrupt ... especially if it is a small municipal government. (Note: Most government-sponsored retirement programs are stipulated and voted on as a bill for an act. The civil servant's benefits are established by law. They can also be repealed by law, if the legislative body so chooses.) Even if the pension fund is preserved, there may be changes in the pension benefits. For example, some pensions come with health care benefits. It is in the realm of possibility that at some point in time in the future, the employer may terminate or reduce such benefits. While there may be no empirical data for the individual worker to evaluate HOW MUCH of a risk these situations pose, he should nonetheless consider such impacts to his retirement. Nothing is guaranteed.
Thanks for watching! Have any pension questions?? Drop them below and let's see if we can help you out!
Can you speak about the Social Security fairness act just passed by the house and heading to the senate? It’s big for pension holders.
I'm still navigating the pension calculation process, but I understand that cost of living adjustments (COLAs) play a significant role in maintaining our standard of living throughout retirement.
Retiring with a pension is such a great benefit! The stability it provides makes the transition into retirement much smoother.
Yes! It is a great benefit for those that have them!
Lifetime payment is wonderful.
Good topic and helpful
Thank you!
I’m 62 , nearing retirement, but my plans are in disarray. I have a 30k annuity and a depleted 401(k) with only 150k left, leaving me uncertain about my financial future. Would consulting a financial advisor be wise to get my retirement plans back on track?
Given your concerns, consulting a financial advisor is a great step. They can help optimize your funds, making your money work for you. Considering your 401(k) depletion, delaying retirement slightly might also be wise. This could provide additional time to replenish your retirement savings.
I have heard how they can help you make the best decisions.
Honestly, I'm worried about losing more money. The thought of working in retirement to make ends meet is unsettling.
And what if that is all you have, even with SS you may not have enough to retire with. If you opt to work with a financial adviser, Dyor, make sure they are certified from AARP or FINRA.
It's essential to find a fiduciary advisor who is legally bound to prioritize your interests and avoid conflicts of interest. My spouse and I work with Glen Howard Chester, a retirement planner recommended by Danielle Dimartino Booth.
Under his guide, we've diversified our investments across traditional IRA and individual brokerage accounts, mirroring his master portfolio. Our investments have grown by 74% in the past year, and he rebalanced our portfolio at the start of the year, helping us maintain a cautious approach with cash reserves amid market uncertainty.
My wife and I will both have National Guard pensions at age 60 and Fed civil service pensions. Due to our 6 yr age difference, we will have a lower income period when we retire in 2028. I will be drawing my mil pension and begin drawing my FERS pension that year. She will have 3 more years before she can draw either. We haven't met with a financial planner yet, but our current strategy is to draw heavily from my traditional TSP for world travel before she begins drawing to avoid having to do ROTH conversion. When I reach age 70, we will be receiving about 12K/month in Pensions and SS.
Damn! Where were you working where you could retire at age 44 with $60K? Cause I retired in 2020 from a Boston suburb at age 54 with $53K and I was an officer for 11 years. We do have COLA but it's fairly conservative.
Yes please do more around this topic and how about instead of Roth conversions for early retirees (pre SSI) drawing down 401K assets and putting aside in a brokage account
Great! Interesting idea! I'll see what we can do with that topic!
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
I have 2 pensions both with COLAs {both LE related} along with DROP account that pays till age 89...I am 58 and currently investing in a 457 plan and will be done working at 63 and take SS then. If I start up a Roth, my understanding is none of the money can be touched for 5 years, is that correct? Informative video Thank you..
It's nice to have 2 lifetime pensions at age 50. VA is also tax-free
How does the pension affect availability of affordable health care? It seems that when I retire with my pension, I won’t be eligible for the lower cost Medicare plans that someone with tax advantaged income could strategize out, but will be much more out of pocket because of the regular income. Am I correct or way out in left field? I am saving as hard as I can in Roth’s, both IRA’s and a 403b, but I’m afraid my pension will come back to bite me with health care costs…
just retired with a police pension and i tried to school all the young officers on created multiple streams of income for yourself when you retire so if you dont want to work again you dont have too. pension/457/taxable account in high yield ETF. 3 streams aint bad, could have been better.
Not bad idea at all! I like it. I'll see if I can expand on that idea in another video!
How to plan how much to save Roth IRA when you have a pension based on income percentage, considering your income contribution to your pension to retirement savings, when you can pull from retirement if pension starts in 40s ext,
Let me see what I can pull together for that! Thanks for your input!
If you don’t have a COLA on your pension but your pension covers your expenses now, how do you calculate a lump sum needed for future expenses that rise with inflation (what is the equivalent to the 4% rule). Sure we need to think about inflation… but no one is talking about a rule of thumb for pensioners who don’t have social security (or are close to having no social security because of WEP).
Thank you
Thanks for watching! :)
Sounds like Roth vehicles or HSA or maybe brokerage account are appropriate for those with pension
Absolutely! I'll try to cover that in more detail in another video
Want to know why home taxes go up every year in the county across America....Yeah stll the gov pensions. Even the poor with a home paid for who dont have a pot to piss in has to pay for pensions.
Can debt collectors go after your pension.
Change your terminology. I’m not lucky to have a pension, I’m fortunate. There is a huge difference. I made financial and personal sacrifices for my pension. My income took off after retiring from the military. I once had a director that was surprised that I was receiving a military pension at 45 years old. He said, “that’s almost like ripping off the government”! He was college educated and of age to join the military. I suggested to him, the recruiter is open. Go down, sign up and spend 20+ years serving. When you retire look me up after receiving your first pension check. Then tell me how much you feel like you’re ripping the government off? Needless to say he never took my well meaning advice. Fortunate, not lucky!
I hear you boss. Retired Army 25 years + VA, grateful and fortunate to make it to the other side. Could care less what people think!
@@joshuawilliams2409 Thanks for your service Brother!
You fail to mention the biggest concern about pensions ... that the pension plan goes up in smoke.
For company-sponsored pension plans, there's a risk that the company goes bankrupt. Similarly, there is a risk that the company is bought out. For government-sponsored plans, there's a risk of the government going bankrupt ... especially if it is a small municipal government. (Note: Most government-sponsored retirement programs are stipulated and voted on as a bill for an act. The civil servant's benefits are established by law. They can also be repealed by law, if the legislative body so chooses.)
Even if the pension fund is preserved, there may be changes in the pension benefits. For example, some pensions come with health care benefits. It is in the realm of possibility that at some point in time in the future, the employer may terminate or reduce such benefits.
While there may be no empirical data for the individual worker to evaluate HOW MUCH of a risk these situations pose, he should nonetheless consider such impacts to his retirement. Nothing is guaranteed.