Retirement

Featured Topics

Ready for your questions!

Dear Penny
Hey, friends! I hope you’re all staying safe and healthy during these trying times. This week, I’d like to invite you to submit your questions about what coronavirus means for your money here in The Penny Hoarder community group. It’s a scary time we’re facing right now, but we’re all in this together. Send your questions my way and I’ll do my best to answer.Read More...

Anyone pursuing a F.I.R.E. strategy?

Theodora
The F.I.R.E is on FIRE. https://www.cnbc.com/2019/03/01/more-workers-are-looking-to-retire-early-a-look-inside-the-fire-movement.html Would love to hear from any of you who are pursuing a strategy to retire early. Teach me your ways!Read More...
Jobelle, Here are a few of the things I plan to do once I have enough funds and "retire". (I used quotes because I never intend to stop pursuing my goals and stop creating new goals. As we all know, achieving goals requires some level of work... so I would never fully retire as I would always be working towards something.) I would travel, but the slow easy method. Road trips and boat trips everywhere. I would not be in a rush, but instead go slow and savor each moment, stopping at whatever...Read More...
I always knew I wanted to retire early. Most of my family died before age 55 years old. So I began saving from my first job. By age 27 I was thoroughly dedicated into stopping work at age 45 years. My children would be done with school and my home would be paid for. That would give me some years of freedom in case I had the same family illness. Well it arrived at age 40, but I was prepared. I got the best medical care I could afford and worked hard at teaching my children everything I...Read More...
Last Reply By Pax · First Unread Post

Topics

IRA

Melody Davis
What needs to be considered when deciding between a ROTH or Traditional IRA account?Read More...

Know Your State Retirement Plan

Anita Manuel
I am a retirement specialist serving school districts in Florida. I want to encourage all school district and state employees to please be aware of your state's retirement program basics. We speak to many of the teachers and staff and find that they are not aware that their pension is partial. They are unaware of the impact of beneficiary choices. DROP is not for everyone so before you sign up please reach out to me. Unfortunately, many feel that variable 403b's and retirement accounts are...Read More...
Thank you so much. I am new and I appreciate you for helping me learn boundaries!!😊Read More...
I don't think this is appropriate for this forum. I understand you may be trying to help people with retirement planning, but your offer to have people reach out to you with questions doesn't seem like it belongs here.Read More...
Last Reply By Anita Manuel · First Unread Post

How Do You Save Money in Retirement?

Nicole D.
I have a question for all the folks who are currently retired. How do you cut costs and save money in retirement? I'm gathering savings tips for a story on The Penny Hoarder, so your responses may be included! Thanks in advance!Read More...
Think of how you started to build an emergency fund to begin with. Consistent deposits into that fund, however small, will build it up again. If possible, consider working PT temporarily to build the fund again. Tighten your belt with expenditures if need be to accommodate those deposits. Check back regularly for some of the GREAT tips that have already been posted. Good luck!Read More...
Great tips for saving day to day! I'm hoping to retire this year and my biggest financial fear is that once I'm on a truly fixed income, should I need to dive into my emergency fund, how difficult it will be to ever rebuild it?Read More...
Last Reply By Umleitungme · First Unread Post

Retirement Savings Question: With a twist ?

Rick Campbell
I have searched for this answer on several sites and not had any luck. You all are awesome with good, honest and timely answers so I know this is the place to find out my answer. Most people ask about saving for retirement questions about how much money they need to retire and live comfortably because when they retire so does their income they are accustomed to living on. Since most people will not make 100% of their normal monthly income, they need to know " How much money do I need in...Read More...
Thank you for your reply. I am single, my children are grown and on their own. I have 2 cars, fairly new, 10 years old or so in good shape. I have a lot of available credit and single digit debt to credit ratio. My home is less than 10 years old but I plan on selling it and moving back to Tennessee or South East Kentucky in a year or so. Not sure if I want to buy land and build a home or just rent since it is just me. So if an emergency situation occurred I would be ok. About 1/3 or more of...Read More...
Have you considered the difference between the cost of your monthly needs and wants, and how much is left over? It doesn't provide an answer, but it would give you a starting point to decide how much free cash you really have. If there isn't much left over, you might want to re-evaluate how much you spend on wants. Think about your biggest possible "normal" emergency. If you own a house, do you have enough cash to replace the roof, furnace or siding? If you own a car, do you have enough cash...Read More...
Last Reply By Rick Campbell · First Unread Post

pay off mortgage with inheritance or invest?

Suzanne Boisvert
I am thinking I would like to pay off my mortgage and save the interset which now is at 4.875% interest portion is at $230 a month. I asked my financial advisor and she ran the numbers and said yes. Then she called me back and said not to pay it off and to invest it. I plan on only working two years or so before I retire. I am now 68. I still feel that paying off the mortgage would be better and I could continue to save.the extra 1000 a month. I am not sure what to do now... What is the best...Read More...
I'm still a few years from retirement, but decided to go for the mortgage payoff. I know from a financial perspective, investing would be financially beneficial, but my numbers tell me I'll have enough to live on by maintaining my current path, and for me, the emotional aspect of retiring with zero debt is important. It sounds like you have the same mindset as I do, but I think before you can decide, you should think about whether you will you have enough to live on, regardless of whether...Read More...
Great info, I just looked it up. This applies to owners of retirement accounts and their beneficiaries for inherited accounts, it allows them to re-calculate their withdrawals. This was done because people are living longer, with this it makes the RMD (required minimum distribution) smaller, which makes it better for wealth preservation and transfer. It lowers the taxes to be paid out because it is a lesser amount.Read More...
Last Reply By Deanne · First Unread Post

Fin-Recovery Post Housing Crisis

Oh Yeah! What you have saved for an emergency backup fund may not be enough of a cushion. But you are retired now on Social Security! T.P.H. articles on Side Gigs are great but now info is needed for careful planning when juggling Social Security, the IRS, and State income tax such as New Mexico. Could really use help in this area.Read More...

401k vs. 401a

Hello Community! I currently work two jobs, full time for State Government and Part Time for a retail store. I am enrolled in a 401a retirement account with my full time job and a 401k account with my part time job. Could any of you explain the difference of these two? Especially with Regards to my taxable income amount.Read More...
From the research I did it appears that the two plans are similar but there are a few things that set them apart from each other. 401a plans are generally offered to government employees while 401k are offered by companies in the private sector. 401a contributions are usually mandatory while 401k are optional Investments in a 401a are generally more conservative than the ones in a 401k I read several different articles on the topic but they all pretty much summed it up the same way. Feel...Read More...
Last Reply By Moore Income · First Unread Post

free tuition for school i'm a seniors.

Christopher Gaffney
looking for schools for seniors with low or no tuition.Read More...
Ivy Tech community college (Indiana) offers free tuition to seniors 60 and up. Their website says: Indiana citizens 60 years of age and older can take credit courses at Ivy Tech tuition-free. In order to qualify for this program a person must meet the following requirements: Be an Indiana resident Be 60 years of age or older at the start of a semester Possess a high school diploma or GED Be retired from their primary vocation (does not apply to homemakers) May not be employed on a full-time...Read More...
At UBTech in Utah, their policy for Seniors is: "Senior Citizens (62 or older) will receive an 80% discount for individual classes. Enrollment will be allowed on a space-available basis. Community education and other self-funding classes are exempt from the senior discount." This is listed in their catalog on page 12: https://www.ubtech.edu/wp-cont...nd-Catalog-Nov-1.pdf I would imagine other community/technical colleges in Utah could have similar offerings, the best place to check would be...Read More...
Last Reply By Mad · First Unread Post

Free tuition for seniors

David K Winslow
Where can I find the list of cooperating institutions for free tuition?Read More...
I think this is a great subject/find. Seniors are on budgets and this program offered is wonderful. Thank you for the great topic!Read More...
Great list. Thanks. Unfortunately the NY ones are not readily available to us and the Virginia ones have an income limit which is very low.Read More...
Last Reply By lori wulff · First Unread Post

This week in... The Penny Hoarder Community

Ashlee
Happy Friday! Whew! Where has this week gone? Here’s your weekly round up of announcements to get you through today and into the weekend... We’ve crowned our November Member of the Month. Join me in congratulating Lisa Acu ñ a (@lismox) for being selected this month’s winner! We all appreciate your help around here, Lisa. Each month we look to crown a new winner. We’re looking for someone who is super helpful and active in the community. Each winner receives a $25 gift...Read More...
Not a problem, @Lesley Michele .Read More...
Thanks Average Joe😁😁😁😁Read More...
Last Reply By AverageJoe · First Unread Post

education

Susan Lucas
Is there free tuition for seniors?Read More...
Check out this article on this site (Pennyhoarder): https://www.thepennyhoarder.co...for-senior-citizens/Read More...
I think Clark Howard has a list of places that offer free classes to seniors. I wish that going back to school for adults was less expensive! I have been toying around with going back as I can't find work with a criminal justice degree.Read More...
Last Reply By sthom · First Unread Post

Where to put my retirement moolah

Umleitungme
My husband and I both have retirement accounts: 401K's, Roth IRA, Gold IRA. We are in a good place financially but have a lot of questions. Where to put our retirement dollars! The Gold has lost 33% of it's value in the last 10 years. The 401K's have lost approximately $1000. per month for the last 18 months. The only one seemingly promising is the Roth IRA. What to do? Put all eggs in one basket or keep diversifying? I'm to the point of putting all my money under the mattress!Read More...
Thanks Mintjulep and Tekkiechikk for your input. We have contacted the Dave Ramsey website for advise. They have '7 Baby Steps' that might help us decide.Read More...
I would think that at your age you'd want a conservative portfolio, especially if you are already in a 'good place financially' as you state. I would avoid high risk- I'm 56 and over the last 25+ years I've modified my portfolio from one of high risk to moderate/moderate conservative. Sure, I'm not making a huge amount every time the stock market skyrockets- but I'm also not losing that, either. Currently I have 65% of my personal retirement in a 60/40 balanced stock & bond index fund...Read More...
Last Reply By Umleitungme · First Unread Post

Happy November!

Ashlee
We’ve made it to the end of the week and the start of a new month Penny Hoarders! Who here can’t believe it’s already November? 😳 This week I want to know if you’re a planner or a procrastinator… Do you start planning and budgeting now for holiday purchases or wait until the last minute? What about your New Year’s resolutions? And now for this week’s announcements… We just hit a HUGE milestone Penny Hoarders… 10,000 community members! Join us in a celebratory happy dance, then go check out...Read More...
@Susan L. Miller We have used Freecycle off and on for years. We got the foot and headboards for our queen-sized bed through the program. We have seen many items we no longer use go to other homes that would use them and recommend it heartily! We have also used our "Marketplace" here in our area on Facebook to buy and sell things. There are so many ways to go and programs to use! Happy selling...and as one of our mentors says "Think..and grow RICH!"Read More...
I'm not sure how many were here when I joined the Penny Hoarder Community, but I do know that it seems as if we've grown by leaps and bounds. I've met some interesting people and like having information and ideas coming in! May we continue to grow in numbers as well as in wealth.Read More...
Last Reply By AverageJoe · First Unread Post

Selling moms house

I am getting some money after the house sells. I plan on hopefully retiring in 3 years. Should I put the money towards paying off my mortgage or into my 401c?Read More...
My mom is deceased. The house was left to 4 of us. She had no mortgage as it was paid off. I meet with my lawyer Wednesday. Hopefully he can help. Thank you!Read More...
I am not an accountant, and this is not tax advice: One thing of importance is who is the owner of the home. If your mother is deceased and you inherited the home recently, you will probably not owe any taxes. If your mother is still living, and it is in her name, and she owned it for a number of years, there could be capital gains taxes on a large portion. It can be worth checking with your CPA BEFORE selling the home to make sure there isn't something you can do to mitigate the tax...Read More...
Last Reply By Suzzzzzz59 · First Unread Post

Investing

I'm a senior citizen about to turn 69. My primary source of income is Social Security but I do seasonal work at our local golf course and side handyman jobs when available to supplement my income. I have save a bit of money and have seen info on some types of investing where a person can start for around $500 or so. My question is this, is that something a man of my age should look into or just be content with the 2-3% online savings and short term CD's provide. Thank toy.Read More...
I would invest through Worthy Bonds. 5% interest, no fees, no withdraw fees, and you can withdraw your money and any interest you accumulate at any time. Interest is calculated daily so you can earn money quickly. https://worthybonds.comRead More...
I wouldnt begin to invest at that age. The market could tumble and you could lose all your investments and not be able to wait out a recovery, especially if your income is limited. However, if you have excess cash you can survive without in the event of a market downturn, then you can .Read More...
Last Reply By seanway · First Unread Post

Social Security Disability (SSDI) Statistics

Ray Taylor Tetreault
Did you know that one in eight American workers between the ages of 35 and 65 will have a disability lasting five years or longer? The average Social Security benefit is $1200 per month and the maximum benefit paid by Social Security is set for 2019 at $3,770 per month but that is significantly higher than the maximum benefits in the past. The maximum is regardless of a person's income even those in excess of $100,000 per year. Another two statistics are that only about 30% of Social...Read More...
From my personal experience and believe me it's been more than a little bit the nice thing about the government is that they always tell you the reason why. The reason for why they say yes and even more why they say no. They use code numbers and for the complete details you need to look them up, which is a real drag but necessary. Once you have read and understood the information all you have to do is make it happen. That's all I dare say. As others have said gather up all your proofs,...Read More...
I have been on disability for about 10 years now. I would be happy to give any info i can on my experience with ssdi. Working part time is a possibility and you can work and receive ssdi if you make 1200/mo or less.Read More...
Last Reply By Lady Kat · First Unread Post

When did you start planning for retirement?

Deon Christie
I'm one of the people that waited a bit too long in my opinion. Which resulted in much larger payments to have retirement policies etc in place. Personally I only started planning for retirement in my 40's. And I must tell you that you will pay a lot more than when you start early. But I'm sure I'm not the only one. We lead different lives and life takes us to unexpected places sometimes. But it's never too late to start. Because even ending up having a little at retirement still beats...Read More...
@Theodora : Thank you kindly I would be happy to share my experience with you.Read More...
@Zach Filstrup That's amazing! Interested in learning about your experience with P2P lending.Read More...
Last Reply By Zach Filstrup · First Unread Post

Pay off mortgage with IRA or refinance

Mortgage is in my name only. If/when I die, my housemate will be up a creek! I could pay off my mortgage using all the money in my IRA. Worth it for my peace of mind? --70+-year-oldRead More...
YOUR peace of mind is only something that you know. However.... If you intend for your housemate to inherit your house, then you need to add them to the title/deed. Call your county and inquire as to what is needed to add someone to your title/deed. You do not need to add them to your mortgage unless they intend to assume your mortgage when you pass. You should call your mortgage company and inquire as to what documents are needed to add someone to your mortgage or what would be needed in...Read More...
Last Reply By Shannon H · First Unread Post

Save early save often

Dan Olsen
Anyone looking to retire early (especially millennials) always take advantage of your 401k if available or have automatic deductions to a Roth IRA. Even if just $25 a week or month it adds up and you can retire in your fifties. As pay increases, up your contributions. I'm 56, worked a good blue collar job and just hit the $2m mark. Einstein said the 8th wonder of the world was compounding interest. Take advantage!Read More...
Good luck and sounds like you had good teachers. Best other lesson is don't panic when markets are down. Look at it as an opportunity to by quality stocks at a discount.Read More...
Congrats @Dan Olsen ! One of the biggest lessons my parents always told me was to take advantage of a 401K!Read More...
Last Reply By Dan Olsen · First Unread Post

Social security opt out

My recent employer is one of the few who have opting out of social security as an option. I have the opportunity to make a one-time election to drop FICA and deposit my money into a private retirement account. I'm 41 and have more than 40 quarters in the regular system. We currently save over 15% of our income for retirement, but unfortunately, we started late. The employer will also pay for a long-term disability policy to cover the fact that I'll be losing my disability benefit. I'm having...Read More...
Dear Take Action, I would spend a little money now to check into this with an independent professional that knows Social Security inside and out. You have invested 10 years into the system. I think maybe you should look for ways to keep it. IF (heaven forbid) something happened to your company you might lose out, depending on what happened. Remember that the more solid a company is financially the more they are targeted, and with the Internet as an added danger, you really should not have...Read More...
Last Reply By Karena Andrusyshyn · First Unread Post

Roth IRA or Traditional IRA

Which IRA is best to invest in, Roth IRA or Traditional IRA?Read More...
@Nats1488 @Robin Hartill @mintjulep Thank you very much!! I understand the difference now! Because of my current income, I believe going with a traditional IRA would be best, at this time. I no longer have dependents, so the tax break would be great!! Thank you!!Read More...
Great question, Rosalina! The main difference boils down to taxes — specifically, when you want to pay them, because we know Uncle Sam’s gonna get his cut. :-) If you want to lower your tax bill now, consider a traditional IRA because you can deduct your contributions now, but you’ll pay taxes when you withdraw the money. With a Roth IRA, you contribute money you’ve already paid taxes on, hence, no tax break now — but the money is all yours tax-free in retirement! Another advantage of a Roth...Read More...
Last Reply By Rosalina Montellano · First Unread Post

Choosing a Financial Advisor and Investment Bank

Abostonnative
Hello Penny Horder Community: I am new as of yesterday and wanted to get info on how to choose a Financial Advisor, tax accountant and Investment Bank. We are about to inherit a large sum (high 6 figure) and need advice. I am 63 and my husband is 66. I work in Boston currently and am not sure when to retire. Any suggestions are welcome!Read More...
I honestly see it’s a doggy world! I am looking for a coach I cannot believe nothing is less than 250 per hour? I can’t afford that! I am totally unsatisfied with my accountant for a long long time, haven’t been able to find another one! Some say you need this team. I cant find a legit mortgage company my bank was my go to years ago & now they are lower than low capital one I was with Chevy chase. No cash 💰 just property I wanna change that!Read More...
Hi Kelly! Thank you for the reply!Read More...
Last Reply By All we need is love! · First Unread Post

Retired at 32

LaLa21
I was medically retired from my job due to a chronic medical condition two year ago. I was fortunate enough to have planned for this possibility by choosing an organization/entity that had phenomenal disability retirement benefits. I love not having the obligation of working anymore, but I must admit that it can get difficult because everyone else is working & thriving in their careers. Are there any other retirees in their 30’s, or am I one amongst none🤷🏽‍♀️? What have you implemented...Read More...
@Tina Flemmons a great start in your search for Work from Home jobs would be at The Penny Hoarder's portal specifically for that. They post all sorts of jobs for people with varying experience. I also found this article on The Penny Hoarder where they share 14 other websites you can find work from home jobs. Hope this helps!Read More...
Any suggestions for work at home jobs...Read More...
Last Reply By Moore Income · First Unread Post

How helpful is a financial advisor? When should I start?

crice
Clearly, saving money is #1 when it comes to being ready for retirement, and while there are differing opinions on what plan is best, I'm pretty reliable in investing a portion of every check. I started late, but (hopefully) there's still time to catch up. I don't know anything about planning for retirement beyond "just save as much money as possible," though. I don't want to end up waiting too long to consult with an adviser -- but I also worry that I'll miss opportunities to maximize my...Read More...
I would also like to add a little as this discussion is about a financial advisor and I have already worked with many of them since my graduation. A financial advisor/investment advisor is very important for anyone who is thinking to save or invest his money. Companies hire complete teams of professionals with command over investment ideas and risk management. Small firms hire freelance advisors or small firms for their consultation. So the answer to your query is simple, Yes, a financial...Read More...
How much should you expect to pay for a financial advisor?Read More...
Last Reply By sararoberts · First Unread Post
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