Two stories about retirement planning

You never know when Personal Finance lessons will come from. Today I heard two stories about the retirement of my family. First, my wife told me that her retirement program at work can be cut. Then I learned that my family in the box company has strange retirement crisis of its own.

Don't count your chickens
Chris come Home disappointed tonight. She has worked for the Government for almost twenty years (eight such as a teacher in high school science) and although she is the proud reinforced work, it is placed in, she Hates how she and her colleagues are often captured by the civilian political battles.

This year, public servants are feeling the pinch again. There are no fewer than eight legislative proposals for modification of the system of public employee retirement of Oregon. In other words, retirement policy, Chris (and colleagues) have been run are about to change, perhaps drastically.

Fortunately, Chris was particles from finished personalities screen saver all his life. It has squirreled away a lot more than the minimum size, so that their retirement was not left to chance. In fact, only a few weeks she proudly announced to me that it is a saving of 30% of its income through various sources. This is impressive. Thus while the proposed cuts in its retirement benefits to their cranky, and while they will hurt their savings rate, they will not respond to her retirement.

What is the moral here? They are ready. at any time you can change your retirement benefits and this is not just public sector employees whose retirement programs may change suddenly. The same may happen with private companies, too.

Note: does not want this post to turn into an argument over public servants and their advantages. Please do not use this forum to launch a debate on whether civil servants are before-or under-compensated Not give figs. Derails and vitriol will be deleted.

Thinking outside the box
My family owns a small company that produces custom fields. In 1995, just before he died, my father created a program for the distribution of profit, so that staff (most of which are members of the family) could have retirement savings, he never did.

Here's how our plan works: every tax season, we have seen the company earned for the previous year. If the flush times, the company would contribute up to 15% of each employee salaries in the distribution of income account. And so if I earned $ 30 000 in 1998, and profits were high, then you can set aside $ 4,500 my retirement account. When times are lean, we set aside anything. Most years are between 0% and 15%.

Shortly after I left my job to blog full-time, business made certain adjustments to the plan for retirement. I am clearly of the data (because it does not participate in the process), but it seems that things have been juggled so that employees can have direct control of their retirement investments. Also, as a side effect, it becomes much easier to withdraw money from the plan for distribution of profit. Which have been made.

In fact, many employees yanked all the money from their retirement to go on trips, buy new cars, etc. (have done so even they suffered 10% early withdrawal penalty and, presumably, had to pay taxes.)

When the company financed the plan for distribution of profit next year, these same officials promptly next money from their accounts — again as 10% of the positive — and spent it.

Solution of the company? They simply stopped financing plan for the allocation of the profits. Now they give employees cash bonuses at the end of the year instead, which averts the 10% penalty. But it hurts folks (like my mother) which were, on average, their retirement plans. And if I was still with the company, this will hurt me.

This is another situation where the existing retirement program has suddenly changed its parameters and is an example of why it is important to take as much control over your personal finances as soon as possible.

The Moral
Remember, folks: nobody cares more about your money than that – and includes your retirement. You've heard all the horror stories about the future of social security, but your other sources of retirement income are subject to change. It is necessary to you to an active role on the subscription in the future.

Here are some steps you can take to make sure, you can save sufficiently for the future:

I'm almost not ask but: whether you heard horror stories about each retirement lately? I know people who have cashed, the accounts worth $ 100,000 to get money at the earliest. This is the common? What other things dumb people do with their retirement savings?

This article is for planning, retirement

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Spare change: the course of so many stories, so that small

Some weeks, there is just too much to write about. This is one of the weeks these. [Notice that I'm heavy fixed spelling error; you don't need to tell me about it again!] Not only is filtered through my brain stored with my own ideas for articles, but the Internet is abuzz with interesting stories about personal finance. Pity the blogger with tons of material!

And not waste time with a long intro I go to jump right in. here are some recent articles, all you sent me or that I found you through my Web surfing:

Earlier this week, I sang praises index funds. If you are interested in index funds, but you don't know where to start, you may want to consider ETFs or exchange-traded funds. Almost all of the ETFs are index funds, but they are sold as stocks. Confused? The Kiplinger has an informative article how ETFs work for you. This is not just a cool piece; It contains solid information.

Elsewhere this ?egite a Curmudgeon Warren Buffett is it again. He is a talent for Liberals and conservatives angry. In this case, Buffett says that the rich should be paying higher taxes. "Taxes for middle class and maybe even the upper middle class and lower should probably be cut even further," Buffett told ABC News. "But I think that people in high end – people like yourself – you may need to be paying much more in taxes. We have it better than you ever had it. "

Brendan Quinn Subsequently GRS reader sent me a link to the presentation, he has given recently to fellow students at Boston College. In a talk entitled their money: buy everything You Want-free wines, Brendan covers, what it requires three rules of personal finance:

Spend less than you earn money you Make. work for you. Prepare for the unexpected.

I think it is great to see the college students initiative to teach each other for financial literacy. Great work, Brendan!

Last week, the New York Times published a story of Nick Martin, which inherits from 14 million dollars ($ 10 million after taxes) in 1998, "But as so often happens to those Lucky enough to realize the American dream of sudden wealth," writes Geraldine Fabrikant, money put by Martins fingers faster than ever imagined. "I used to mock all you squandered wealth that suddenly (and there are countless other similar appliances), but I'm more thoroughly. Flexo in Consumerism as a comment for this story, "it is easy to be judgmental. The Internet is where comfort armchair quarterbacks. Very few people know what will happen if the same situation – unexpected unexpected – occurs. "

And finally, here are two recent articles from United States today. Cindy Perman has long (and controversial) piece about Americans die in debt. Many boomers a little you saved for retirement. But more, article reports that "almost 40% of retired Americans said they have had credit card debt in their twilight years — and are not probably worried about paying it in his life. In the happy news here is a homeless Arizona man who returned backpack containing $ 3300 cash and a laptop computer. Now, it's a great story.

There are many other big stories in my stack, but it already is one of the largest "Spare change" round-ups I have ever posted. We will require good for now.

This article is for spare change

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Spare change: So Many Stories, So Little Time

A few weeks is just too much to write. This is one of the weeks these. [Note that (I) you have confirmed severe typo; does not need to tell me it again!] Not only is my brain percolating articles in your own ideas, but the Internet is abuzz with interesting stories about personal finance. Pity ton material with blogger!

Long intro, but only for the duration of the waste, on the other hand, I will jump to the right. The following are some recent articles, you are seriously folks sent me, or that you browse through your site I found:

Earlier this week, I sang praises index funds. If you are interested in index funds but do not know where to begin, you should consider exchange traded funds or ETFs. Almost all of the ETFs are index funds, but they are traded like stocks. Confused with? Kiplinger's has an informative article How do ETFs. This is not only lightweight opposite the piece; It includes a solid information.

The rest of the lovable curmudgeon Warren Buffett is it again. He has a talent for carrying out the Liberals and conservatives angry. In this case, the Buffett says, the rich should pay more taxes. "Taxes and lower middle class, and maybe even the upper middle class are likely to be cut even further," Buffett told ABC News. "But I feel a great end users — people such as yourself — would be paying a lot more in taxes. We have a better than we ever had it. "

Next, the GRS reader Brendan Quinn sent me a link to the other students, he gave recently Boston College in the presentation. His right to speak, Your Money: buy Anything You Want, Guilt-Free, Brendan covers what he calls the personal finance three rules:

Consume less than you can Make money, earn. you have you work for an unexpected .prepare.

I think it is great to see the college students taking to teach each other about financial literacy initiative. Great work Brendan!

Last week, The New York Times published a story about Nick Martin, that inherit from 14 million dollar ($ 10 million after taxes) in 1998. "But as so often happens in those lucky enough to be understood in the light of the sudden the riches of the American dream," writes the Geraldine Fabrikant "money through Martins ' loystynyt fingers faster than ever imagined." I used to mock seriously folks, who squandered a sudden riches in this format (and has a myriad of similar tales), but lately I'm more sympathetic. Such as consumerism Commentary Flexo wrote about this story "is easy to be impairment. The Internet is the place where the armchair quarterbacks to feel comfortable. Very few know what would happen if the same situation — an unexpected Cash — occurs to them. "

Finally, here are two Recent articles in the recorded for the USA Today. Cindy Perman is long (and controversial) piece of Americans die from the debt-to- information. Many boomers enough saved for retirement. But more than that, the article reports that "nearly 40% of the retired Americans said, they've accumulated credit card debt in their twilight years — and are not worried about giving their life". Happier News here is a short piece of music information homeless Arizona man who threw a backpack containing $ 3300 cash and a laptop computer. Now, it is a great story.

There are a lot of other great stories to my stack, but this is already one of the largest "spare part change" on the basis of you ever post the round. We call this a good now.

This article is about the change the spare part

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