UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next
Author: joelxwil Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76392  
Subject: Re: State pension vs Higher salary Date: 4/19/2012 1:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Well, it depends on what salary and benefits your new job will offer. While I never had a pension plan specifically, I had a very good 403B plan. Between my contributions and the contributions of the company, I was putting away 24% of my salary tax-deferred.

Now, of course, I had to manage my money myself. I was responsible for making the decisions, and so my retirement depended on what I did in that retirement account. Several decisions were very significant, such as selling everything around mid-March of 2000. That locked in some good profits and kept me from holding a significant loss. Of course, there were also choices of which mutual fund to buy, and the consequences of that decision could be significant. The bottom line is that if you have a plan like that, you should be prepared to manage your money intelligently.

If your new job offers a pension plan, remember that it can be modified at any time, and check your vesting rights. I have not looked at this sort of stuff for years, but some places required you to have put in as much as a year before vesting. Be sure that you are well informed. Just how well is the company doing, and what are its prospects?

You also need to look at Social Security. My wife and I get around $40,000/year from Social Security. Unfortunately, that is subject to government whim also.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement