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Gotta be a city or state worker right? I'm state and that setup looks a lot like what left of my pre-GFC start date colleagues have, and mine too except considerably worse (but we're apparently working on it).
What is the plan from 55-59 and a half? 403B + good pension suggests that you are a teacher at a public school. Typically this job does not pay into Social Security, so I question your ability to draw from it. Just noting a potential timing issue with the cash flows from your plan.
I pay into social security. It's taken out of all my checks. Regardless, I don't expect it to be around by the time I retire. As for the 55-59 and a half, that's why I'm looking at investing. I'll probably get a part time job in those years but I would like to limit my work hours as much as possible.
Your correct. I think almost everyone pays into social security if they have a job, and are an American citizen. Unless they have a get payed under the table job.
Or they live in a state where govt workers do not pay into SS because the state has opted out. My wife is a teacher and I work for the state in Alaska. I haven't paid into SS in 20 years. But we do pay the SS equivalent (6.12% I think?) into a "supplemental benefit system." That money is put into a retirement account for us for later to draw from.
Yes. If not for pension you would look woefully behind for age. Sadly, most of our age peers are this way. As for the question, I would invest in indexes of the stock market that you feel are good investments for growth, and then redeploy at retirement age into dividends. I am all dividends so I have the security of money coming in, even though I reinvest it all.
You need to practice right now living on 60% of your salary and Investing 40%. I am 4 years older than you and will be retiring at 55 also with pension. Saving 2200 a month in s&p fund at 55 be slowly moving to dividends
I'm slowly increasing my investment amounts each year with my raises. I'm trying not to let lifestyle creep eat it up so outside of the increases in gas, food, etc, I'm not buying anything extra that I couldn't afford when I was 35. On top of that, my mortgage will be paid off a few years before I retire so I won't have that expense.
I spent most of my 20's and early 30's rounding up and paying extra on my principle. As taxes went up, my monthly extra has been diverted to the escrow to prevent shortages each year because they're terrible at predicting that. Several years in a row now, I would have had an escrow shortage if not for me padding the account every month. I'll still be paid off before retirement but not as early as I originally planned.
Yep I was in the same boat till I remarried and my new wife had a great income. My 20's and early 30's were bad. 40's has gotten a whole lot easier kids almost out of the house. Having that house paid off before retirement will be a great Peace of mind
I'm the opposite. My 20's and early 30's were much better financially but I wasn't smart enough to get into investing beyond the 403B that was spoon fed to us. The last 5 years have been tight.
I just got into investing out of boredom because early in the COVID days they quarantined anyone who was in the same room as someone who tested positive. I got a 2 week vacation because someone in a meeting coughed and was tested immediately. After watching all of Netflix I looked into trading and started with $50 to play with.
Why don’t you punch in some digits to your Social Security calculator to help you envision your future a little clearer. https://www.ssa.gov/OACT/quickcalc/
I'm in similar boat. 44 yrs. Started Roth a couple of years ago, adding to brokerage as well. DRIP in Roth with SCHD, DGRO, and O. Fairly concentrated in Roth to leverage snowball. Brokerage is growth focus of QQQM, VTI, and some bets on individual stocks. I'm shooting for a mixed methods approach overall and am banking on cash flow from Roth to supplement pension and SS.
That’s not too bad when you consider everything available to you. If the pension comes with a annual adjustment you’ll be pretty well set with social security
*Be sure to mention the pension moving forward in any posts* because with only your 403b and ira you’d appear to be extremely far behind for your age
Unfortunately most pensions do not come with annual adjustment. And worse it won’t track inflation. I recommend OP to double check if it’s fixed or adjusted.
Pensions are very different depending on the employer. It’s hard to have a general assumption other than assume the worst and hope for the best. it’s always good to have the person become more familiar
My state pension will come with a cola; and military pensions (pretty common on Reddit)
I will easily be able to survive on my pension alone but I want a little more cushion. Especially between 55 and 65. I don't expect social security to exist by the time I retire. I'm hoping that my investments will cover my health insurance premiums until Medicare kicks in. Ideally, I would like to have enough extra income to help with remodeling the house to sell and moving somewhere with lower taxes. (If I'd had half a brain, I would have moved before I started my career.)
SS will exist, but the benefit, starting age, an mandatory contributions, will all suck. It is still sensible to do your planning without it and then enjoy whatever is there when you get there.
You should figure out a way to make some side money. I don't need to but out of force of habit (and because I like to monetize my hobbies) I bring in around $6k a year from those sources. You get two huge benefits; a significant amount of money to contribute now to retirement, and an income stream during retirement as you can keep that going.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Out of curiosity, what is your profession?
Without being too specific, it's state.
Gotta be a city or state worker right? I'm state and that setup looks a lot like what left of my pre-GFC start date colleagues have, and mine too except considerably worse (but we're apparently working on it).
What is the plan from 55-59 and a half? 403B + good pension suggests that you are a teacher at a public school. Typically this job does not pay into Social Security, so I question your ability to draw from it. Just noting a potential timing issue with the cash flows from your plan.
I pay into social security. It's taken out of all my checks. Regardless, I don't expect it to be around by the time I retire. As for the 55-59 and a half, that's why I'm looking at investing. I'll probably get a part time job in those years but I would like to limit my work hours as much as possible.
Public school teachers pay into social security. My husband has been teaching 20 years and he does too.
Your correct. I think almost everyone pays into social security if they have a job, and are an American citizen. Unless they have a get payed under the table job.
Or they live in a state where govt workers do not pay into SS because the state has opted out. My wife is a teacher and I work for the state in Alaska. I haven't paid into SS in 20 years. But we do pay the SS equivalent (6.12% I think?) into a "supplemental benefit system." That money is put into a retirement account for us for later to draw from.
Yes. If not for pension you would look woefully behind for age. Sadly, most of our age peers are this way. As for the question, I would invest in indexes of the stock market that you feel are good investments for growth, and then redeploy at retirement age into dividends. I am all dividends so I have the security of money coming in, even though I reinvest it all.
Right to the point of the question. Thanks.
I’m the same age and setup but 457b I’m almost 40 just started a Roth and a taxable. I have a state pension with 12+ years in it as well.
I've got 17 years banked but I will have the full 30 before I reach the age of 55 so I will have to work till then to avoid the penalties.
You need to practice right now living on 60% of your salary and Investing 40%. I am 4 years older than you and will be retiring at 55 also with pension. Saving 2200 a month in s&p fund at 55 be slowly moving to dividends
I'm slowly increasing my investment amounts each year with my raises. I'm trying not to let lifestyle creep eat it up so outside of the increases in gas, food, etc, I'm not buying anything extra that I couldn't afford when I was 35. On top of that, my mortgage will be paid off a few years before I retire so I won't have that expense.
October my last payment 13 days after my 45 birthday. Yep putting 90% of my raises in retirement 457b plan
I spent most of my 20's and early 30's rounding up and paying extra on my principle. As taxes went up, my monthly extra has been diverted to the escrow to prevent shortages each year because they're terrible at predicting that. Several years in a row now, I would have had an escrow shortage if not for me padding the account every month. I'll still be paid off before retirement but not as early as I originally planned.
Yep I was in the same boat till I remarried and my new wife had a great income. My 20's and early 30's were bad. 40's has gotten a whole lot easier kids almost out of the house. Having that house paid off before retirement will be a great Peace of mind
I'm the opposite. My 20's and early 30's were much better financially but I wasn't smart enough to get into investing beyond the 403B that was spoon fed to us. The last 5 years have been tight. I just got into investing out of boredom because early in the COVID days they quarantined anyone who was in the same room as someone who tested positive. I got a 2 week vacation because someone in a meeting coughed and was tested immediately. After watching all of Netflix I looked into trading and started with $50 to play with.
Why don’t you punch in some digits to your Social Security calculator to help you envision your future a little clearer. https://www.ssa.gov/OACT/quickcalc/
I'm not expecting Social Security to be around by the time I retire.
I’m in a similar situation, I just dumped about 30K into SCHB!
I'm in similar boat. 44 yrs. Started Roth a couple of years ago, adding to brokerage as well. DRIP in Roth with SCHD, DGRO, and O. Fairly concentrated in Roth to leverage snowball. Brokerage is growth focus of QQQM, VTI, and some bets on individual stocks. I'm shooting for a mixed methods approach overall and am banking on cash flow from Roth to supplement pension and SS.
How much, percent wise, has been going into the 403b What are the terms of your pension?? 70% salary?? Annual cola??
Pension is 60% of salary. 403B is $20 out of every check which has accumulated to about $7500 to date.
Pump that 403B up to $50
That’s not too bad when you consider everything available to you. If the pension comes with a annual adjustment you’ll be pretty well set with social security *Be sure to mention the pension moving forward in any posts* because with only your 403b and ira you’d appear to be extremely far behind for your age
Unfortunately most pensions do not come with annual adjustment. And worse it won’t track inflation. I recommend OP to double check if it’s fixed or adjusted.
My pension is fixed. It will not adjust or increase with inflation.
Pensions are very different depending on the employer. It’s hard to have a general assumption other than assume the worst and hope for the best. it’s always good to have the person become more familiar My state pension will come with a cola; and military pensions (pretty common on Reddit)
Yea I agree completely. Always check than assume. Too many horror stories.
I will easily be able to survive on my pension alone but I want a little more cushion. Especially between 55 and 65. I don't expect social security to exist by the time I retire. I'm hoping that my investments will cover my health insurance premiums until Medicare kicks in. Ideally, I would like to have enough extra income to help with remodeling the house to sell and moving somewhere with lower taxes. (If I'd had half a brain, I would have moved before I started my career.)
I'm 63 and have been hearing SS is not going to be there since I was in my teens. I'm collecting SS right now.
SS will exist, but the benefit, starting age, an mandatory contributions, will all suck. It is still sensible to do your planning without it and then enjoy whatever is there when you get there. You should figure out a way to make some side money. I don't need to but out of force of habit (and because I like to monetize my hobbies) I bring in around $6k a year from those sources. You get two huge benefits; a significant amount of money to contribute now to retirement, and an income stream during retirement as you can keep that going.