I'm 50 and nearing retirement. I've got a pension plan through my employer, but I'm not sure if it will be enough to cover my living expenses in retirement. I've also got some savings in a 401(k) plan, but I'm not sure how to optimize my withdrawals to minimize taxes.
My pension plan is expected to pay out about $40,000 per year in retirement, and I've got about $500,000 saved in my 401(k) plan. I'm not sure how to coordinate these two sources of income to minimize taxes and ensure I have enough to live on in retirement.
Consult or speak with a financial advisor. I was faced with a similar challenge when I was nearing retirement, but I worked with an expert advisor, who specializes in retirement planning that helped me create a customized plan that optimized my pension and 401(k) withdrawals to minimize taxes and ensure a steady income stream in retirement.
Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
When people thank me for my military service, I tell them that the Marine Corps thanks me on the first of each month. Post 30 years of service, I taught highschool for 14 years. Pension number 2 but no COLA. Lived below my means then and now. Semper Fidelis
50 working days until I retire at age 50 with a .gov pension. 31 years served as a wildland firefighter but only 24.9 count (was a temporary/ski bum for too long 🥴). Very grateful. This job broke me physically. It’s been a great ride but it’s time for me to be done. Can’t wait for the next chapter(s).
I retired after 25 years as a city firefighter in Oklahoma and have worked last 17 years as an EMT for a casino. I want congress to change it before I retire from all work in 3 years
30 years with the Border Patrol, I retired at 51 with a pension, I’ll be 59 in March and I’m all beat up. That job took its toll on me. I’d do it again….
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.
@imohimoh3441 That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
@@EleanorMabel VICTORIA CARMEN SANTAELLA Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determines a lot of things, my parents both spent same number of years in the medical profession, my mom was investing through a financial advisor while my dad through the 401k. On retirement, my mom retired with about $5million, while my dad retired with roughly $3.8million.
You are right. I’m in my mid 50’s now, my wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with profits over the years, but at least I’m earning more. I’m making money even before retiring and my retirement funds has grown way more than it would have been with the 401k.
It’s unfortunate most people don’t have such information, I don’t really blame people who panic cos lack of information can be a big hurdle. I’ve been making more than $25k passively by just investing through an advisor, and I don’t have to do much work. It doesn’t matter if the economy is crashing, great CFA will always make good returns.
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thanks for the information!! She appears to be well-knowledgeable and accredited. I ran a Google search on her name and came across his website, thanks for sharing.
Retired in 2020 at 53 after 30 years in law enforcement. Pension is great. Doubling it up the last 4 years with another FT position as a director of security. Paying off everything and buying my toys now. One more year and I’ll be done!
I retired at 59 ,and that was 14 years ago, I do get a pension from my state job of 33years and social security, I am blessed, house and car paid off and no credit card debt
We experienced the pinnacle of our era, but it is now gone. Like what happened to Rome, the corrupt administration will bring this nation to an end. My condolences go out to anyone who is close to retiring and may be worried about whether their pension will be enough to pay the rising cost of living. Insane fiscal policy, poor regulatory policy, poor energy policy, and poor foreign policy
50 and early retirement. I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
Having a Army reserve retirement, along with my government retirement, Social Socurity, and a 100% VA Disability it adds up to pretty good chunck of change for myself.
Thank you Azul: I wish that you would dedicate a series to the very well to do. Like a very diversified business owner in the top ten to top one percenters, these people can be very productive members of society but not sure about social security or how to find a good financial adviser.
Same (Air Force). Had no idea at the time and mentally minimized the importance of the pension, but it’s HUGE. Compared to the alternative of trying to manage a large portfolio, withdrawing just enough but not too much. That would be stressful
Thank you for your service and sacrifice. 4.8 yrs active Seabee’s, 19 yrs active reserves. Life circumstances got me back in service. With a monthly retirement check, I am thankful.
I have a military pension with full medical for the rest of my life. I'm about to retire from teaching at a college and it will be a large pension. My social security even at 62 will be pretty good.
I am now 63 and retired… retired at 59. Started off as an automotive mechanic then realized that I didn’t have sick leave… when I was seriously sick for 6 weeks. Decided to change careers. Asked some friends who worked for a major Utility company if they got sick leave. Not only did they get sick leave… they got funeral leave, jury duty off, voting time off and so on. I made the move (took two years to get hired). Worked there for 35 years and retired at 59 years of age… and with a pension. Married to a woman who is great with money. So built my 401k up nicely too. Haven’t touched my 401k yet and no Social Security yet. Just living off of my pension so far. Planning on getting SS when I hit 65. It’s about choices and decisions in life. I am a blue collar worker who was always looking for the better job. And always had good work ethic. And wasn’t out buying a new car every two years. Heck I was buying used cars. Haha.
I retired at 58 with a CALPERS pension. Will qualify for SS next year 🎉. Both receive COLA increases. A big plus. I’m glad I stuck with my job for as long as I did.
CalPERs here too. Paid into FICA/SS my entire 35 year career. Not wanting to take SS when I turn 62 because we'll pay too much in taxes with no write offs.
I recently retired from the retail clerks union after 35 years. I’m receiving a defined pension and supplementing my retirement from my dividends. I have no debt and will be applying for my max SS at 70. I worked hard for my pension and I started investing when I was in my mid 20’s. It took a lot of sacrifices & time but well worth it
@@jeffro221 congratulations. I figured by waiting 4 more years until 70, hopefully the increase of 8% a year would offset any potential cuts in SS in 2033.
@@cashflow68 My thinking as well. Also, a financial planner wrote in an article a long time ago, that instead of paying for long term care insurance, which can have premiums raised with no limit, and can have coverage reduced whenever the company wants to, instead wait for SS to 70 if your health will support it, and let your extra SS effectively be your long term "insurance" for extra money you might need.
I'm going to thank you for your service. You've done more for this country than some others on here just looking to get their thanks because they were in the military
I am blessed to have a military and GS pension, plus SS all get adjusted with COLA. In addition, a 7 figure portfolio. Prioritizing savings, controlled spending and putting the nose to grindstone vice chasing dream jobs has enabled a great retirement.
Same here - I’m a triple dipper. Actually, my retirement take home pay (after health insurance & survivor benefit payments) is actually about $30 more than my civil service take home pay. No change to my lifestyle & no withdrawal from my investment accounts. Life is grand with unlimited PTO. Sweet!!! 🎉🎉
I'm close to clenching a 30 year government pension...I'm grateful for that. The fact that the expected out-of-pocket expenses for a Medicare enrollee from age 65 to death (and excluding long-term assisted living/skilled nursing costs) is $157,000 is a scandal...a scandal that is under the rug and will catch a lot of retirees in a bad way before they pass on.
It is also an expense/risk you have significant control over if you do the hard work of sifting bad health info from good, ditching the standard American diet, and manage weight, fitness and stress. No guarantees, but average doesn't mean inevitable.
That 157k number is very misleading. 75% to 80% of that big number is Medicare part B & part D premiums and the cost of a Medicare supplement plan. These premiums are paid on a monthly basis over a 25 year period.
I worked 2 jobs for over 30 years each simultaneously: jobs that nobody really wanted. It was rough at times, but found out each job came with a pension. So when retirement comes in a few years, i will be fortunate to have 2 pensions, social security and some investments and dividends Thank you God.
Only needed 10 years to qualify for a state pension in my state. Highly recommend looking at your state for employment opportunities even if the wage is less than the private sector.
I would be retiring or working less in 5 years, and I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $250K per year but nothing to show for it yet.
predicting short-term market movements is extremely difficult in reality. It also essentially requires the investor to be right twice: they must perfectly time both their entrance to and exit from the market.
That is exactly the reason I stopped taking advise from TH-camrs; in the long run, I only end up with a jumbled collection of stocks and bonds. Whereas all I needed to earn over $350k in less than two years was guidance from a true market expert.
It amazes me that in living memory a military pension used to be a joke. For the vast majority of service members it paid 50% of an already comically tiny paycheck. The only upside is it paid as soon as the service member left. But thanks to public gratitude during GWOT that paycheck went up and so did corresponding pensions. Meanwhile government pensions (generally) became less generous and corporate pensions became nearly extinct. The government is trying to dial military pensions down to near nothing again with an elaborate IRA style substitute. But it’s doing it slowly so it won’t scare people out or bother recruiting.
1. If you consider using the 4% rule, if your pension gives you 40,000 a year it is like having a million dollars in savings. 2. It is nor considered earned income and will not effect your Social Security payments if you are eligible for it and you take it before full retirement age.
Why you buying a big house on the later stages on life when its usually just 1 or 2 people living there my wife and I use 4 rooms bedroom bathroom kitchen livingroom
Nice video coverage with trading, technical analysis skills alone are not enough; discipline and emotional maturity are also crucial for success. The saying "time in the market vs. timing the market" is a good mindset to have during market fluctuations. Thanks to Shea Ardolf’s insights, daily trade signals, and my dedication to learning, I've been increasing my daily earnings. Keep it up!
She deserves more accolades, just the same way I was going through comments and I saw a post about her., I never regretted giving her a try, it’s been constant progress, pays a great deal to have the best at your side.
Trading is the future, not these holding on crypto currency and expecting a surge in market price.. Thanks, Eugenia Eiland you have really helped me out so well in this crypto market
I was trading fairly a small account and I got over 200% within one month. We need more traders like her in the space to guide the teeming population of crypto enthusiasts and traders out there
I was trading fairly a small account and I got over 200% within few weeks. We need more traders like her in the space to guide the teeming population of crypto enthusiasts and traders out there
It has been interesting watching these videos and comparing them to my situation. As an Aussie, our systems are both similar enough (different terms but basically the same) and different enough to warrant a lengthy explanation. In Australia, the classic defined benefit (db) pension scheme (some multiple of final average salary, years service, and retirement age factor) was basically limited to government, military, or maybe a dozen or so major companies. These schemes closed to new members in the first decade or so of this century. I'm not at retirement age yet (about 15 years to go), but I'm lucky enough to have a military pension and a government service pension when I do retire. One big difference is that unlike Social Security, the general aged pension payment available to Australians aged 67 and older has both an income and an assets test to determine eligibility. Exceed either one, and you can't get the aged pension. If everything goes according to plan, my db pensions will exceed the income limit for the aged pension. The big variable will be what lumps of money I'll be able to accumulate between now and then.
Thanks for your content. Will be retiring next year with a full paid pension. Employees after 2017 have to put in 4% a check. Backed by County Municipality. Im a Corrections Officer
My pension is basically work till 67 to collect without penalty, I said screw that I am trying to retire no later than 60. I will take the penalty and invest on the side and live way below my income until retirement.
Retired 7 years ago at 51 with a pension after 30 years in the Border Patrol. I’ll be 59 in March and I’m all beat up, that job took its toll on me. Life is not fair but life is good.
Me and my wife were 40 and never thought of a pension, she got a job with the state and me federal, 18 years later saved 401ks and others and a pension
A pension is very is very important. I have 2 pensions both government. These pensions take the stress out of accumulating hundreds of thousands of money in retirement just to make a go of it in retirement. I also have some savings on the side.
I was a single high school teacher for 32 years and am set for life. My last salary was over 100k . I worked hard for this. I supplement with my own investments and no debts. Amen 🙏 COLA adjusted.
Great for you! I’m a high school teacher in Illinois and hope to retire with a bit over 31 years in 2028 and 100k base with one time 4.6% increase after 61st birthday. After that, 3% COLA after that. Wife gets 50% of my pension for life.
Teachers. What a racket. Summers off, long break in spring, fall, winter. Finished by 3pm every day. School system is awful. And still “teachers don’t make any money”
You can request a reduction in IRMAA due to life changing events with form SSA-44. For example, if you stop working or reduce the amount you earn, you can ask for a recalculation based on the lesser income. There are other exceptions as well. My financial planner told me about this strategy.
I just spoke with a friend yesterday about his upcoming retirement. He said his pension was a fixed amount each month with no Cost of Living Adjustment. I reminded him inflation since 01-31-2021 was up 20.71%. He has other savings/investments to compensate for that.
@@francisoconnor2392 I'm not sure but I don't think he had a lump sum option. A utility worker. His brother told me about a month ago he took a lump sum option from his (different) utility company.
Retired E8 at 28years of service in 2015, worked for a state school in the IT field for 7 years. Retired at 54 when I realized I was working just to work and to pump the investments up to a bigger war chest. Spouse is well set if I pass 1st. The grandkids are setup even better since we maxed Roth's for years and will likely not even touch them with having SS, Military, State and VA Disability. Biggest mistake I made was going to work after leaving the military.
I took my private pension as a lump sum and rolled it into my 401k. Then I took that lump sum amount and purchased lifetime annuities from two different insurance companies (to spread the risk). My income would have been larger if I had taken the pension as an annuity from my employer, but I had no faith my employer would remain solvent for long. Yes, it would have been backed by PBGC, but I didn't have much confidence in PBGC either.
I'm thankful for my military retirement pension and VA benefits. The $ exchange rate in Philippines pesos is more than enough to live a good life. Zero copy w VA and Tricare for life health insurance.
I'm fortunate to have two pensions. This after starting over at 48 (loss of husband etc). In the perfect world to eliminate risk (like what happened to United) I'd like to take a lump sum at retirement, but the monthly I can get from an annuity makes a huge difference for me. With that and social security I can almost live without touching my investments. I need to further research risk of annuities. Unfortunately all my money is in accts where I'll be taxed. I've been using 20% but maybe should go to 25% for taxes, in creating my budget? Many companies who still do provide a pension also have some benefit toward healthcare. My company provides a stipend for non-medicare costs after retirement, when you've worked x 15 years. My employer offers like 15 options in how you can take a pension. Azul would be interesting to hear you talk more on annuities.
Cant speak to others states/counties but as someone who missed the California PEPRA cutoff by about 45 days, the people still on the 2% @55 formula have it way better than those of us who are on the 2% @62 schedule.
Work for a private (not listed/no stock) company that has both a legacy pension in which I'm vested, a 401k that transitioned to a double match (17%) when the pension was ended. Then in the last few years ended the extra-high match back down to 8% match and implemented a 3% of salary defined contribution pension. With another small pension from a prior employer, I'll net about the average SS check. A lot of moving parts for sure, but all consolidated at one administrator and will be pretty easy to manage.
you work where I work. 401k works a little different than what you stated, but you get the big picture. the biggest factor for me was immediately contributing for the full 401k match in my early-mid 20s and never stopping.
Always appreciate your videos, Azul, especially since they give me a lot of hope! Didn't truly get started saving for retirement until my late 30s but due to a strong, nation-wide union pension, along with us both having 401 accounts (and that's not counting our SS payouts) I've come to believe that we will be in better shape than many Americans. Thanks for the heads-up about the tax burden on higher pension earners, wife's continued payout in the event of my death, and the 'hidden' costs of Medicare (if one wants decent coverage)! I was somewhat aware of these but a deeper look is certainly warranted! Keep up the good work, it's very much appreciated!
@@edhcb9359 Depends on the angle one looks at it. I'm happy that mine will cover the mortgage and utilities. The rest of my friends have to continue working till the late 60's. I'm retiring early. FERS isn't weak in my life.
I did the survivor benefit plan for both my military and federal pensions so that if I go before my wife, she gets something rather than nothing. It is not a trivial cost on the pensions, but important to me, so it is worth it. Obviously, if she predeceases me, it shuts off.
I'm 60 years old and will retire next year, yet the prospect of it makes me weak. I apologise to everyone who has retired and filed for social security during this time after working for years only to lose everything due to an unforeseen circumstance. Those who are retired and have no family or savings to rely on find it quite challenging.
It's true that with inflation, it's easier than ever to grasp how to build your money after retirement. By using a competent portfolio advisor, you can study and enjoy a fully diverse market passively. I believe that the effects of a rise or decline in the value of the US dollar on assets are complicated.
It is still feasible to hire one even if you lack the necessary skills. I worked as a project manager, and the crash in April severely damaged my own portfolio, which included about $850,000 of my retirement income. I promptly contacted a financial adviser who created a defensive plan to safeguard my money and increase my portfolio's value during this volatile time. Since then, I've earned more than $250k.
Annette Marie Holt is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
I chose the lump sum for my pension. I look at it this way I now own it and no one can take it. It’s earning money and I am spending less than what it is earning so it continues to grow.
Retired at 49, pension 165k a year, 3-5% yearly increase depending on CPI. 6 months into retirement I was bored so I Moved to another state and now have 6 years vested into a 2nd pension but won’t be that much but it’s something. Pay attention to what states tax retirement income and at what rate. A few states don’t tax retirement income, so it helps in the long run.
I'd love to see you use your retirement tool and plug in numbers with a person with a pension. I tried and was very surprised that it didn't depict a more positive outcome. Must be doing something wrong with my entries.
I had a small pension from a previous employer, that they turned over to an insurance company so its now a annuity. Should I worry about the insurance company going under and my annuity disappearing, or are those insured in some way like it was as a pension?
24 Work/ + 21 Vacation/ 64 Calendar Days until my 70% CalPers Pension just after Age 62. CalPers & Social Security are Coordinated. I'll draw down my 403b to put off Social Security until Age 65 & Medicare.
I have a 401K, I have a pension plan and will soon have medical coverage during my retirement next year. I will have options for my pension that you mentioned in your video. My medical coverage will be from 62 years old to 65 years old. After that I am required to get Medicare and my medical coverage will work with that. The company that I work for no longer offers a pension plan or medical coverage in retirement . I am grandfathered in. The company I work for now offers an enhanced 401K plan for newer employees. I am feeling pretty lucky that I will get this. Thoughts?
I worked to full retirement..and have a pension that i also contributed 7% a year After 43 years between Social Security and the pension i will gross $12,000 more than my annual salary prior to retiring. Yes i will pay about the same in Fed. Income Tax, but no State Tax or retirement saving so that is extra 10% a year. Once the mortgage and yes second mortgage was paid off 5 years ago we started making big improvements to the house. remodeled kitchen, new roof, converted to gas new furnace & Air conditioner, and finishing up a remodel to the bathroom. Then I decided to work part time for the rest of this year, and my wife also is working full time. This will cover a Alaskan Cruise and a new car by the end of this year. We'll that is the plan..lol
My pension also exceeds my salary with a margin. Some will say it’s crazy, but if you were happy with your spending during past times - I was - it just feels great. Good luck!
I have an option to cash out versus the annuity. Wish that was included in the discussion. Especially considering spousal benefits are not advantageous. I plan to cash out and invest
My problem is I married someone who was already retired so I am not entitled to his pension and it is significant. So if I die he is set because I have transferable 401k, BUT his teachers pension does NOT transfer to me so if I outlive him and I am 13 years younger, I get nothing some I loose about 4,500 a month without his pension and SS which is significant. Luckily we have no debt.
Azul, thank you for the helpful info. I wish that you would be more helpful in cleaning up the comments area of unwanted commercials for financial advisors.
Azul, will you do a video about the windfall prevention act regarding pension and SS ( who, how ) this can affect you. I get conflicting info about how this works mostly about if you did or didn’t pay into SS
From Own experience. I had the minimum 40 credits to receive SS. I would receive $750.00 per month at 62. I took a City Job and retired after 30 yrs. In 2013 at age 58. At 62 I signed up for SS and was surprised I received anything due to WEP. But I received $400.00 a month more than enough to pay for Medicare when I signed up at age 65. My pension was plenty to cover the shortage. My wife who worked for the school district retired with Calpers pension and will receive full SS. No WEP because the district made continuous contributions throughout her career. It can be straight forward to understand. Good luck.
Pensions are backed and insured but they can change rules and cut some benefits and payouts according to pbgc etc... Mine was cut years ago. 55 and out changed to 65 and funds cut by 50 bucks a month . Steel workers union and company pension. It amazes me that for years it's been going towards underfunded critical status and it waited to be under water enough to be under enough to be bailed out by government insurance .
I will be blessed to get a modest, non-COLA pension (God willing I live that long). My idea is to budget my necessities from investments and SS, and use the pension for travel/fun, knowing I will be less active (and have an inflation reduced pension payment as time goes by).
that figure for average medical expenses not covered by Medicare is eye-watering, especially when most people's earnings in retirement are nowhere near that and many have little savings. I'm in the UK, where thankfully we have the National Health Service - often described here as 'free-at-the-point-of-use' (i.e. paid for out of general taxatioin), but that's changing, sadly, and we're moving in the direction of the US
Have a mix of 1/3 annuities (some pensions), 1/3 stocks and 1/3 fixed property. Allows for aggressive, 100% stock allocation throughout retirement. Property protects against inflation while annuities/pensions give a baseline income. Know many are sceptical about annuities but it does give you more options to optimise your wealth during retirement. And since that time is getting longer and longer, this is increasingly important. One example; have a credit line that allows me to draw up to three years of living expenses so can avoid selling stocks when market turns sour. This is only possible because the bank knows there's a solid baseline income. Credit also has the added advantage of being tax free - so the money goes far. This is partly due to my fortunate financial situation - but I believe a balance between the three makes a lot of sense.
6/23/24 = retirement i have been retired since 2012 a teamster retired at 55 yrs old , first home has to be paid for,, all cars and trucks pd for , no credit card bal, , health care will be costly , do home work ,common sense will help u , never used pro for help , just common sense your income will tell u if u can retire = good luck
I'm 58 and have 18 months left before collecting a state pension at 60% (GDC). I'll also be collecting a supplemental retirement pension with the Peace Officer's Annuity Benefit plan, which will be another $800 month. Combine that with my wife's pension, our investments, and social security, I think we'll be just fine. The icing on the cake is that we'll be debt free in 6 months. There is a lot of planning and sacrifice necessary for a comfortable retirement but most people don't have the discipline for it. With most companies, even governments, now going to a 401k, even fewer people will be able to retire because they won't give up a few temporary pleasures here and there, not to mention inflation, fewer jobs, weaker work ethics, etc.
I do not have faith to get my tiny $ 1800 a month starting in December. Update: I got my 1st check on 1 December. However, we chose 100% survivor benefit and they take tax out. So my check is only $1402 a month for life.
I have a pension benefit decision coming up (Healthcare company) when I retire soon. I can choose from various pension plans or I can take a lump sum payment and convert to an IRA. I'm leaning toward taking the lump sum payout. Is there any reason I shouldn't elect the lump sum?
@@edhcb9359 not always true, although this is a small dollar amount example I had qualified for a pension after 5 years with my first employer 1884-1989 (age 28) Left them in 1989. It was a grand total $90 a month at age 65. At age 58 they offered a buyout of $10750. It would have taken me till age 75 to break even. That 10750 has turned into well over 20000 in the 5+ years since I took it.
Hey Azul, you referenced in the PBGC for insured pensions, but is it correct PBGC is for private pensions only? How are government pensions insured and do u have the same concern with a gov pension going belly up?
Govt pensions are rock solid. Now some tiny lilttle water district somewhere may well not be so solid, but normal govt pensions are very solid. Why? They will just issue pension obligation bonds (borrow money) or raise taxes to pay the pensions.
That Airline was TWA. My father put 42 years into that airline as an LST Mechanic. That a hole Ichan drove it into Bankruptcy . He only received a small portion of the Pension he earned. PBGC is a joke. !
I do not have a pension, but my wife does. By the time we retire (in 10-13 years or so, in our 50’s) we are considering taking the lump sum, and selling my business. We will also have our own 401k and IRA’s, so we should be OK. I love the idea of consistent monthly income, but we’d rather have control of that money and be able to pass it down to our kids when we die.
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
Been debt free for two years thanks to Abby Joseph Cohen Services. So sad to see my friends in their 40s with car loans, mortgages and credit card debt.
Abby Joseph Cohen hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I'm stoked because I'm heading into retirement with almost a million bucks in my portfolio.
@@edhcb9359 I'm not sure how a lump is taxed or if you can avoid taxes by rolling it over. With a 401k that is pre-tax can be converted to a Roth when your working and taxes are lower rather than higher during retirement. Your taxable income determines how much of SS us taxed. Lower your taxable income lower your taxes. A pension pays out until the end a d is taxed based on what tax bracket you are in. They are not very flexible when trying to lower your taxes.
@@normt430 You would be surprised at what you can do to lower tax burden with pension income. No different than any other income with that exception that many states don’t tax pensions at all.
Azul I have a pension should I take the lump sum or the monthly annuity?? Its a solid company. Doing the 6% rule I should take the monthly payment, the payout % is 7.4%. Any ideas ??
I had a choice.. more pension more taxes or less pension and more freedom. so I retired at 59 w pension with health coverage and medicare refund 5 years ago. No regrets taking the early retirement even though i took the reduction of 15% pension.
I have three pensions one year away from SS. I live on a third of my pensions and save the rest. All my pensions are Federal. I have more savings than I will ever spend. I pay cash for needs and wants. Large expenses? I could buy multiple homes with cash. The only investment I have is laddered CDs to hedge against inflation. The government gave me income, the government takes some back in the form of taxes, I made my living in mathematics I run numbers around accountants, they can’t help me any more than I can help myself, I can read tax law, and to make it simple you can buy tax software the accountants use. I help expats around the globe when they are in financial trouble, most had investments and savings that they outlived. Those on pensions seem to do better.
I'm 50 and nearing retirement. I've got a pension plan through my employer, but I'm not sure if it will be enough to cover my living expenses in retirement. I've also got some savings in a 401(k) plan, but I'm not sure how to optimize my withdrawals to minimize taxes.
Retirement planning can be complex, especially when it comes to optimizing pension and 401(k) plans. hows your pension plan and 401(k) like
My pension plan is expected to pay out about $40,000 per year in retirement, and I've got about $500,000 saved in my 401(k) plan. I'm not sure how to coordinate these two sources of income to minimize taxes and ensure I have enough to live on in retirement.
Consult or speak with a financial advisor. I was faced with a similar challenge when I was nearing retirement, but I worked with an expert advisor, who specializes in retirement planning that helped me create a customized plan that optimized my pension and 401(k) withdrawals to minimize taxes and ensure a steady income stream in retirement.
@@PatrickLloyd- this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
Mind if I ask you to recommend this particular coach you using their service?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
When people thank me for my military service, I tell them that the Marine Corps thanks me on the first of each month. Post 30 years of service, I taught highschool for 14 years. Pension number 2 but no COLA. Lived below my means then and now. Semper Fidelis
Thanks for your service and enjoy your pension and retirement!
From a Canadian we love ya for your service bro
Thank you for all you’ve done. You are living well!
Live below one’s means.
That’s been my key as well.
28 years as a state prison guard, pension with cola !!
50 working days until I retire at age 50 with a .gov pension. 31 years served as a wildland firefighter but only 24.9 count (was a temporary/ski bum for too long 🥴). Very grateful. This job broke me physically. It’s been a great ride but it’s time for me to be done. Can’t wait for the next chapter(s).
Thank you for risking your life to save others. Have a wonderful retirement, you more than earned it! :)
Congrats on your well earned retirement and pension. I wish you the best in the next chapter in your life
I retired after 25 years as a city firefighter in Oklahoma and have worked last 17 years as an EMT for a casino. I want congress to change it before I retire from all work in 3 years
30 years with the Border Patrol, I retired at 51 with a pension, I’ll be 59 in March and I’m all beat up. That job took its toll on me. I’d do it again….
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.
@imohimoh3441 That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
@@FernandoBowen-78 How do i reach her.......
@@EleanorMabel VICTORIA CARMEN SANTAELLA Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
* SCAM ALERT *
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determines a lot of things, my parents both spent same number of years in the medical profession, my mom was investing through a financial advisor while my dad through the 401k. On retirement, my mom retired with about $5million, while my dad retired with roughly $3.8million.
You are right. I’m in my mid 50’s now, my wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with profits over the years, but at least I’m earning more. I’m making money even before retiring and my retirement funds has grown way more than it would have been with the 401k.
It’s unfortunate most people don’t have such information, I don’t really blame people who panic cos lack of information can be a big hurdle. I’ve been making more than $25k passively by just investing through an advisor, and I don’t have to do much work. It doesn’t matter if the economy is crashing, great CFA will always make good returns.
impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thanks for the information!! She appears to be well-knowledgeable and accredited. I ran a Google search on her name and came across his website, thanks for sharing.
Retired in 2020 at 53 after 30 years in law enforcement. Pension is great. Doubling it up the last 4 years with another FT position as a director of security. Paying off everything and buying my toys now. One more year and I’ll be done!
federal employees, many state employees, teachers, police, firefighters, union jobs all usually have pensions.
Receiving a pension from State of TN! I was lucky to receive the old pension plan. I have been retired since 2021! Still smiling!
I retired at 59 ,and that was 14 years ago, I do get a pension from my state job of 33years and social security, I am blessed, house and car paid off and no credit card debt
We experienced the pinnacle of our era, but it is now gone. Like what happened to Rome, the corrupt administration will bring this nation to an end. My condolences go out to anyone who is close to retiring and may be worried about whether their pension will be enough to pay the rising cost of living. Insane fiscal policy, poor regulatory policy, poor energy policy, and poor foreign policy
50 and early retirement. I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
⚠️* SCAM ALERT *⚠️
Folks read posts like this and don't understand it's a scam.
Usual spam post
Having a Army reserve retirement, along with my government retirement, Social Socurity, and a 100% VA Disability it adds up to pretty good chunck of change for myself.
Nice
Thank you Azul: I wish that you would dedicate a series to the very well to do. Like a very diversified business owner in the top ten to top one percenters, these people can be very productive members of society but not sure about social security or how to find a good financial adviser.
25.5 yrs in the Army. The best decision I ever made Retired fulling at 51.
Same (Air Force). Had no idea at the time and mentally minimized the importance of the pension, but it’s HUGE. Compared to the alternative of trying to manage a large portfolio, withdrawing just enough but not too much. That would be stressful
Thank you for your service and sacrifice. 4.8 yrs active Seabee’s, 19 yrs active reserves. Life circumstances got me back in service. With a monthly retirement check, I am thankful.
Public safety for 23 years. Been on my pension for 14 years now
I have a military pension with full medical for the rest of my life. I'm about to retire from teaching at a college and it will be a large pension. My social security even at 62 will be pretty good.
You will still need to pay for Medicare. My husband is retired military, still working and pays almost $400.00 a month for Medicare
I am now 63 and retired… retired at 59. Started off as an automotive mechanic then realized that I didn’t have sick leave… when I was seriously sick for 6 weeks. Decided to change careers. Asked some friends who worked for a major Utility company if they got sick leave. Not only did they get sick leave… they got funeral leave, jury duty off, voting time off and so on. I made the move (took two years to get hired). Worked there for 35 years and retired at 59 years of age… and with a pension. Married to a woman who is great with money. So built my 401k up nicely too. Haven’t touched my 401k yet and no Social Security yet. Just living off of my pension so far. Planning on getting SS when I hit 65.
It’s about choices and decisions in life. I am a blue collar worker who was always looking for the better job. And always had good work ethic. And wasn’t out buying a new car every two years. Heck I was buying used cars. Haha.
I retired at 58 with a CALPERS pension. Will qualify for SS next year 🎉. Both receive COLA increases. A big plus. I’m glad I stuck with my job for as long as I did.
And healthcare! I have Calpers too
Windfall?
WEP & GPO don’t apply to me
CalPERs here too. Paid into FICA/SS my entire 35 year career. Not wanting to take SS when I turn 62 because we'll pay too much in taxes with no write offs.
My husband and I are in the CalPERS club too, we are so grateful for our pensions.
Most trade unions still offer pensions.
I recently retired from the retail clerks union after 35 years. I’m receiving a defined pension and supplementing my retirement from my dividends. I have no debt and will be applying for my max SS at 70. I worked hard for my pension and I started investing when I was in my mid 20’s. It took a lot of sacrifices & time but well worth it
I have been waiting to start SS also. In August, I'm going to put in the order to start in December, my 70th birthday month.
@@jeffro221 congratulations. I figured by waiting 4 more years until 70, hopefully the increase of 8% a year would offset any potential cuts in SS in 2033.
@@cashflow68 My thinking as well. Also, a financial planner wrote in an article a long time ago, that instead of paying for long term care insurance, which can have premiums raised with no limit, and can have coverage reduced whenever the company wants to, instead wait for SS to 70 if your health will support it, and let your extra SS effectively be your long term "insurance" for extra money you might need.
I'm going to thank you for your service. You've done more for this country than some others on here just looking to get their thanks because they were in the military
I am blessed to have a military and GS pension, plus SS all get adjusted with COLA. In addition, a 7 figure portfolio. Prioritizing savings, controlled spending and putting the nose to grindstone vice chasing dream jobs has enabled a great retirement.
Same here - I’m a triple dipper. Actually, my retirement take home pay (after health insurance & survivor benefit payments) is actually about $30 more than my civil service take home pay. No change to my lifestyle & no withdrawal from my investment accounts. Life is grand with unlimited PTO. Sweet!!! 🎉🎉
And now we know why local governments are going bankrupt. Not to mention the insane spending on military
RIGHT ON…..AZUL….. I’m a pension guy … looking to retire first of the year …. Great to hear other ways of retirement….. EXCELLENT 🍺🍺
I'm close to clenching a 30 year government pension...I'm grateful for that. The fact that the expected out-of-pocket expenses for a Medicare enrollee from age 65 to death (and excluding long-term assisted living/skilled nursing costs) is $157,000 is a scandal...a scandal that is under the rug and will catch a lot of retirees in a bad way before they pass on.
pay off your mortgage before retiring and sell (or consider reverse mortgage) if you end up needing LTC.
It is also an expense/risk you have significant control over if you do the hard work of sifting bad health info from good, ditching the standard American diet, and manage weight, fitness and stress. No guarantees, but average doesn't mean inevitable.
Get a Medicare advantage plan so that at least you’ll know exactly what your costs are.
My mortgage has been payed off for years, so at least I know that that would be an option if push came to shove.
That 157k number is very misleading. 75% to 80% of that big number is
Medicare part B & part D premiums and the cost of a Medicare supplement plan. These premiums are paid on a monthly basis over a 25 year period.
I worked 2 jobs for over 30 years each simultaneously: jobs that nobody really wanted. It was rough at times, but found out each job came with a pension. So when retirement comes in a few years, i will be fortunate to have 2 pensions, social security and some investments and dividends
Thank you God.
@@davidgress6535 You worked 60 years?
Only needed 10 years to qualify for a state pension in my state. Highly recommend looking at your state for employment opportunities even if the wage is less than the private sector.
I am lucky to have both Social Security and a 1/2 pension from my deceased spouse.
My retirement is golden.
The only thing you don't have is.......me!
I would be retiring or working less in 5 years, and I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $250K per year but nothing to show for it yet.
predicting short-term market movements is extremely difficult in reality. It also essentially requires the investor to be right twice: they must perfectly time both their entrance to and exit from the market.
That is exactly the reason I stopped taking advise from TH-camrs; in the long run, I only end up with a jumbled collection of stocks and bonds. Whereas all I needed to earn over $350k in less than two years was guidance from a true market expert.
I've been considering but haven't been proactive. Can you recommend your advisor? Could really use some assistance.
"Nicole Anastasia Plumlee" is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
It amazes me that in living memory a military pension used to be a joke. For the vast majority of service members it paid 50% of an already comically tiny paycheck. The only upside is it paid as soon as the service member left. But thanks to public gratitude during GWOT that paycheck went up and so did corresponding pensions. Meanwhile government pensions (generally) became less generous and corporate pensions became nearly extinct. The government is trying to dial military pensions down to near nothing again with an elaborate IRA style substitute. But it’s doing it slowly so it won’t scare people out or bother recruiting.
1. If you consider using the 4% rule, if your pension gives you 40,000 a year it is like having a million dollars in savings. 2. It is nor considered earned income and will not effect your Social Security payments if you are eligible for it and you take it before full retirement age.
I didn't know that thanks
Exactly, pensions are great
Buy your car, large housing-expense, RV etc BEFORE you retire. Get all of that out of the way 😁
don't buy an RV at all. rent one.
@@jdenino6022true!
100%. No big expenses in retirement.
I did exactly that and love it. I even bought a cheap small boat too.
Why you buying a big house on the later stages on life when its usually just 1 or 2 people living there my wife and I use 4 rooms bedroom bathroom kitchen livingroom
Nice video coverage with trading, technical analysis skills alone are not enough; discipline and emotional maturity are also crucial for success. The saying "time in the market vs. timing the market" is a good mindset to have during market fluctuations. Thanks to Shea Ardolf’s insights, daily trade signals, and my dedication to learning, I've been increasing my daily earnings. Keep it up!
Shea Ardolf program is widely available online..
She deserves more accolades, just the same way I was going through comments and I saw a post about her., I never regretted giving her a try, it’s been constant progress, pays a great deal to have the best at your side.
Trading is the future, not these holding on crypto currency and expecting a surge in market price.. Thanks, Eugenia Eiland you have really helped me out so well in this crypto market
I was trading fairly a small account and I got over 200% within one month. We need more traders like her in the space to guide the teeming population of crypto enthusiasts and traders out there
I was trading fairly a small account and I got over 200% within few weeks. We need more traders like her in the space to guide the teeming population of crypto enthusiasts and traders out there
It has been interesting watching these videos and comparing them to my situation.
As an Aussie, our systems are both similar enough (different terms but basically the same) and different enough to warrant a lengthy explanation.
In Australia, the classic defined benefit (db) pension scheme (some multiple of final average salary, years service, and retirement age factor) was basically limited to government, military, or maybe a dozen or so major companies. These schemes closed to new members in the first decade or so of this century.
I'm not at retirement age yet (about 15 years to go), but I'm lucky enough to have a military pension and a government service pension when I do retire.
One big difference is that unlike Social Security, the general aged pension payment available to Australians aged 67 and older has both an income and an assets test to determine eligibility. Exceed either one, and you can't get the aged pension.
If everything goes according to plan, my db pensions will exceed the income limit for the aged pension. The big variable will be what lumps of money I'll be able to accumulate between now and then.
Thanks for your content. Will be retiring next year with a full paid pension. Employees after 2017 have to put in 4% a check. Backed by County Municipality. Im a Corrections Officer
Congrats.
My pension is basically work till 67 to collect without penalty, I said screw that I am trying to retire no later than 60. I will take the penalty and invest on the side and live way below my income until retirement.
Retired 7 years ago at 51 with a pension after 30 years in the Border Patrol. I’ll be 59 in March and I’m all beat up, that job took its toll on me. Life is not fair but life is good.
Congratulations on retiring at 51. Did the job beat you up or was it your lifestyle?
Me and my wife were 40 and never thought of a pension, she got a job with the state and me federal, 18 years later saved 401ks and others and a pension
A pension is very is very important. I have 2 pensions both government. These pensions take the stress out of accumulating hundreds of thousands of money in retirement just to make a go of it in retirement. I also have some savings on the side.
I was a single high school teacher for 32 years and am set for life. My last salary was over 100k . I worked hard for this. I supplement with my own investments and no debts. Amen 🙏 COLA adjusted.
Great for you! I’m a high school teacher in Illinois and hope to retire with a bit over 31 years in 2028 and 100k base with one time 4.6% increase after 61st birthday. After that, 3% COLA after that. Wife gets 50% of my pension for life.
Teachers don't get paid very well! Ask one!
If they’re CALSTRS they do. Most are paid very well. The only bad thing is no social security.
Most teachers here in California end up with a pension about 65-70 percent of their highest annual salary.
Teachers. What a racket. Summers off, long break in spring, fall, winter. Finished by 3pm every day. School system is awful. And still “teachers don’t make any money”
My teaching pension in Ohio is a life saver.
Thank goodness I have a pension and I'll have my BCBS health insurance to go with Medicare part A & B.
Thank you Azul. I retire as a 30 year arts educator in 2025.
You can request a reduction in IRMAA due to life changing events with form SSA-44. For example, if you stop working or reduce the amount you earn, you can ask for a recalculation based on the lesser income. There are other exceptions as well. My financial planner told me about this strategy.
I just spoke with a friend yesterday about his upcoming retirement. He said his pension was a fixed amount each month with no Cost of Living Adjustment. I reminded him inflation since 01-31-2021 was up 20.71%. He has other savings/investments to compensate for that.
Be sure to vote for Joe Biden again to get even more inflation.
I’m assuming no lump sum option
@@francisoconnor2392 I'm not sure but I don't think he had a lump sum option. A utility worker. His brother told me about a month ago he took a lump sum option from his (different) utility company.
Retired E8 at 28years of service in 2015, worked for a state school in the IT field for 7 years. Retired at 54 when I realized I was working just to work and to pump the investments up to a bigger war chest. Spouse is well set if I pass 1st. The grandkids are setup even better since we maxed Roth's for years and will likely not even touch them with having SS, Military, State and VA Disability. Biggest mistake I made was going to work after leaving the military.
I took my private pension as a lump sum and rolled it into my 401k. Then I took that lump sum amount and purchased lifetime annuities from two different insurance companies (to spread the risk). My income would have been larger if I had taken the pension as an annuity from my employer, but I had no faith my employer would remain solvent for long. Yes, it would have been backed by PBGC, but I didn't have much confidence in PBGC either.
I'm thankful for my military retirement pension and VA benefits. The $ exchange rate in Philippines pesos is more than enough to live a good life. Zero copy w VA and Tricare for life health insurance.
I'm fortunate to have two pensions. This after starting over at 48 (loss of husband etc). In the perfect world to eliminate risk (like what happened to United) I'd like to take a lump sum at retirement, but the monthly I can get from an annuity makes a huge difference for me. With that and social security I can almost live without touching my investments. I need to further research risk of annuities. Unfortunately all my money is in accts where I'll be taxed. I've been using 20% but maybe should go to 25% for taxes, in creating my budget? Many companies who still do provide a pension also have some benefit toward healthcare. My company provides a stipend for non-medicare costs after retirement, when you've worked x 15 years. My employer offers like 15 options in how you can take a pension. Azul would be interesting to hear you talk more on annuities.
Im a Teamster with a pension. Thank you James Riddle Hoffa SR.
In Illinois we have the TRIP healthcare plan up to age 64. I intend to get the Open Access Plan for a very reasonable monthly rate.
Cant speak to others states/counties but as someone who missed the California PEPRA cutoff by about 45 days, the people still on the 2% @55 formula have it way better than those of us who are on the 2% @62 schedule.
Call a whahbulance! 😂
Work for a private (not listed/no stock) company that has both a legacy pension in which I'm vested, a 401k that transitioned to a double match (17%) when the pension was ended. Then in the last few years ended the extra-high match back down to 8% match and implemented a 3% of salary defined contribution pension. With another small pension from a prior employer, I'll net about the average SS check. A lot of moving parts for sure, but all consolidated at one administrator and will be pretty easy to manage.
you work where I work. 401k works a little different than what you stated, but you get the big picture. the biggest factor for me was immediately contributing for the full 401k match in my early-mid 20s and never stopping.
Will you get SS pension also?
Always appreciate your videos, Azul, especially since they give me a lot of hope! Didn't truly get started saving for retirement until my late 30s but due to a strong, nation-wide union pension, along with us both having 401 accounts (and that's not counting our SS payouts) I've come to believe that we will be in better shape than many Americans. Thanks for the heads-up about the tax burden on higher pension earners, wife's continued payout in the event of my death, and the 'hidden' costs of Medicare (if one wants decent coverage)! I was somewhat aware of these but a deeper look is certainly warranted! Keep up the good work, it's very much appreciated!
Thanks, Azul. I'm headed toward retirement with a Federal pension. Thankful for the cost of living raises with my pension.
FERS is pretty weak as far as govt pensions go.
@@edhcb9359 Depends on the angle one looks at it. I'm happy that mine will cover the mortgage and utilities. The rest of my friends have to continue working till the late 60's. I'm retiring early. FERS isn't weak in my life.
I did the survivor benefit plan for both my military and federal pensions so that if I go before my wife, she gets something rather than nothing. It is not a trivial cost on the pensions, but important to me, so it is worth it. Obviously, if she predeceases me, it shuts off.
I'm 60 years old and will retire next year, yet the prospect of it makes me weak. I apologise to everyone who has retired and filed for social security during this time after working for years only to lose everything due to an unforeseen circumstance. Those who are retired and have no family or savings to rely on find it quite challenging.
It's true that with inflation, it's easier than ever to grasp how to build your money after retirement. By using a competent portfolio advisor, you can study and enjoy a fully diverse market passively. I believe that the effects of a rise or decline in the value of the US dollar on assets are complicated.
It is still feasible to hire one even if you lack the necessary skills. I worked as a project manager, and the crash in April severely damaged my own portfolio, which included about $850,000 of my retirement income. I promptly contacted a financial adviser who created a defensive plan to safeguard my money and increase my portfolio's value during this volatile time. Since then, I've earned more than $250k.
Mind if I ask you to recommend this particular coach you using their service?
Annette Marie Holt is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
Most Military, Federal, State, County, City jobs ALL have pensions. I would say 2/3rds of them have it.
I chose the lump sum for my pension. I look at it this way I now own it and no one can take it. It’s earning money and I am spending less than what it is earning so it continues to grow.
Retired at 49, pension 165k a year, 3-5% yearly increase depending on CPI. 6 months into retirement I was bored so I Moved to another state and now have 6 years vested into a 2nd pension but won’t be that much but it’s something. Pay attention to what states tax retirement income and at what rate. A few states don’t tax retirement income, so it helps in the long run.
May I ask…what kind of job nets you a $165k pension per year??
I'd love to see you use your retirement tool and plug in numbers with a person with a pension. I tried and was very surprised that it didn't depict a more positive outcome. Must be doing something wrong with my entries.
I had a small pension from a previous employer, that they turned over to an insurance company so its now a annuity. Should I worry about the insurance company going under and my annuity disappearing, or are those insured in some way like it was as a pension?
I think you mean $150K in medical expenses for the rest of their life, not per year. Who could afford $150K per year of medical expenses?
Great video. Thankfully, I opted for the 100%. My spouse will receive the same amount that I currently receive from my pension.
24 Work/ + 21 Vacation/ 64 Calendar Days until my 70% CalPers Pension just after Age 62. CalPers & Social Security are Coordinated. I'll draw down my 403b to put off Social Security until Age 65 & Medicare.
Working on my second pension right now.
I have a 401K, I have a pension plan and will soon have medical coverage during my retirement next year. I will have options for my pension that you mentioned in your video. My medical coverage will be from 62 years old to 65 years old. After that I am required to get Medicare and my medical coverage will work with that. The company that I work for no longer offers a pension plan or medical coverage in retirement . I am grandfathered in. The company I work for now offers an enhanced 401K plan for newer employees. I am feeling pretty lucky that I will get this. Thoughts?
I have a small pension and it is very helpful.
I worked to full retirement..and have a pension that i also contributed 7% a year After 43 years between Social Security and the pension i will gross $12,000 more than my annual salary prior to retiring. Yes i will pay about the same in Fed. Income Tax, but no State Tax or retirement saving so that is extra 10% a year. Once the mortgage and yes second mortgage was paid off 5 years ago we started making big improvements to the house. remodeled kitchen, new roof, converted to gas new furnace & Air conditioner, and finishing up a remodel to the bathroom. Then I decided to work part time for the rest of this year, and my wife also is working full time. This will cover a Alaskan Cruise and a new car by the end of this year. We'll that is the plan..lol
My pension also exceeds my salary with a margin. Some will say it’s crazy, but if you were happy with your spending during past times - I was - it just feels great. Good luck!
I’m going to do DROP for a few years to have a safety net. I’m done after that. Hopefully I’ll never have to work again
I have an option to cash out versus the annuity. Wish that was included in the discussion. Especially considering spousal benefits are not advantageous. I plan to cash out and invest
My problem is I married someone who was already retired so I am not entitled to his pension and it is significant. So if I die he is set because I have transferable 401k, BUT his teachers pension does NOT transfer to me so if I outlive him and I am 13 years younger, I get nothing some I loose about 4,500 a month without his pension and SS which is significant. Luckily we have no debt.
Please use a tripod or digital stabilizing for the video. I was getting seasick.
Azul, thank you for the helpful info. I wish that you would be more helpful in cleaning up the comments area of unwanted commercials for financial advisors.
Let’s go for a walk!
Azul, will you do a video about the windfall prevention act regarding pension and SS ( who, how ) this can affect you. I get conflicting info about how this works mostly about if you did or didn’t pay into SS
From Own experience. I had the minimum 40 credits to receive SS. I would receive $750.00 per month at 62. I took a City Job and retired after 30 yrs. In 2013 at age 58. At 62 I signed up for SS and was surprised I received anything due to WEP. But I received $400.00 a month more than enough to pay for Medicare when I signed up at age 65. My pension was plenty to cover the shortage. My wife who worked for the school district retired with Calpers pension and will receive full SS. No WEP because the district made continuous contributions throughout her career. It can be straight forward to understand. Good luck.
@@stevelopez372 Appreciate the info
Pensions are backed and insured but they can change rules and cut some benefits and payouts according to pbgc etc...
Mine was cut years ago. 55 and out changed to 65 and funds cut by 50 bucks a month .
Steel workers union and company pension.
It amazes me that for years it's been going towards underfunded critical status and it waited to be under water enough to be under enough to be bailed out by government insurance .
I will be blessed to get a modest, non-COLA pension (God willing I live that long). My idea is to budget my necessities from investments and SS, and use the pension for travel/fun, knowing I will be less active (and have an inflation reduced pension payment as time goes by).
that figure for average medical expenses not covered by Medicare is eye-watering, especially when most people's earnings in retirement are nowhere near that and many have little savings. I'm in the UK, where thankfully we have the National Health Service - often described here as 'free-at-the-point-of-use' (i.e. paid for out of general taxatioin), but that's changing, sadly, and we're moving in the direction of the US
Have a mix of 1/3 annuities (some pensions), 1/3 stocks and 1/3 fixed property. Allows for aggressive, 100% stock allocation throughout retirement. Property protects against inflation while annuities/pensions give a baseline income. Know many are sceptical about annuities but it does give you more options to optimise your wealth during retirement. And since that time is getting longer and longer, this is increasingly important. One example; have a credit line that allows me to draw up to three years of living expenses so can avoid selling stocks when market turns sour. This is only possible because the bank knows there's a solid baseline income. Credit also has the added advantage of being tax free - so the money goes far. This is partly due to my fortunate financial situation - but I believe a balance between the three makes a lot of sense.
At 65 Fidelity says 150k in medical costs not covered by Medicare? I do not think so.
6/23/24 = retirement i have been retired since 2012 a teamster retired at 55 yrs old , first home has to be paid for,, all cars and trucks pd for , no credit card bal, , health care will be costly , do home work ,common sense will help u , never used pro for help , just common sense your income will tell u if u can retire = good luck
I'm 58 and have 18 months left before collecting a state pension at 60% (GDC). I'll also be collecting a supplemental retirement pension with the Peace Officer's Annuity Benefit plan, which will be another $800 month. Combine that with my wife's pension, our investments, and social security, I think we'll be just fine. The icing on the cake is that we'll be debt free in 6 months. There is a lot of planning and sacrifice necessary for a comfortable retirement but most people don't have the discipline for it. With most companies, even governments, now going to a 401k, even fewer people will be able to retire because they won't give up a few temporary pleasures here and there, not to mention inflation, fewer jobs, weaker work ethics, etc.
If you have Medicare you should have a supplement. It can take the stress out of life if you have one.
So true!!
Is taking a lump sum the safer option? If lump sum is taken can it be rolled over to something so we don’t have to pay taxes all at once?
I do not have faith to get my tiny $ 1800 a month starting in December. Update: I got my 1st check on 1 December. However, we chose 100% survivor benefit and they take tax out. So my check is only $1402 a month for life.
I have a pension benefit decision coming up (Healthcare company) when I retire soon. I can choose from various pension plans or I can take a lump sum payment and convert to an IRA. I'm leaning toward taking the lump sum payout. Is there any reason I shouldn't elect the lump sum?
Great idea. I took my pension lump sum last year and stuck it in an IRA. I don’t trust these corporations at all!
It all depends
Run the numbers
It is not a one size fits all question
Remember, they only offer you that lump sum to save themselves money. 🤷🏻♂️
@@edhcb9359 not always true, although this is a small dollar amount example
I had qualified for a pension after 5 years with my first employer 1884-1989 (age 28)
Left them in 1989.
It was a grand total $90 a month at age 65.
At age 58 they offered a buyout of $10750.
It would have taken me till age 75 to break even. That 10750 has turned into well over 20000 in the 5+ years since I took it.
Hey Azul, you referenced in the PBGC for insured pensions, but is it correct PBGC is for private pensions only? How are government pensions insured and do u have the same concern with a gov pension going belly up?
Govt pensions are rock solid. Now some tiny lilttle water district somewhere may well not be so solid, but normal govt pensions are very solid. Why? They will just issue pension obligation bonds (borrow money) or raise taxes to pay the pensions.
Video shot on the open sea ?
That Airline was TWA. My father put 42 years into that airline as an LST Mechanic. That a hole Ichan drove it into Bankruptcy . He only received a small portion of the Pension he earned. PBGC is a joke. !
I'll have a Federal pension when I retire. I can be relatively assured that the Federal government will be around longer than me.
I do not have a pension, but my wife does. By the time we retire (in 10-13 years or so, in our 50’s) we are considering taking the lump sum, and selling my business. We will also have our own 401k and IRA’s, so we should be OK. I love the idea of consistent monthly income, but we’d rather have control of that money and be able to pass it down to our kids when we die.
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
How and where can i reach her, if you don't mind me asking?
Been debt free for two years thanks to Abby Joseph Cohen Services. So sad to see my friends in their 40s with car loans, mortgages and credit card debt.
Abby Joseph Cohen hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I'm stoked because I'm heading into retirement with almost a million bucks in my portfolio.
Stay at home mom until 53?? WHAT? Ya right. Y'all this is a salesman. Beware.
scammer
Im coming up on my 33rd of commercial roofing in the union and so far I'm only looking at 3800. A month 👎
You're doomed.
Financial advisors hate pensions. It’s money that they can’t steal from you.
Unless they can talk you into taking a lump sum. And if it’s an option, they ALWAYS try. 😂
It is the tax planning flexibility with pension and SS that can create a tax nightmare down the road.
@@normt430 A lump sum payout is taxed automatically as capital gains. Is that flexible?
@@edhcb9359 I'm not sure how a lump is taxed or if you can avoid taxes by rolling it over.
With a 401k that is pre-tax can be converted to a Roth when your working and taxes are lower rather than higher during retirement. Your taxable income determines how much of SS us taxed. Lower your taxable income lower your taxes.
A pension pays out until the end a d is taxed based on what tax bracket you are in. They are not very flexible when trying to lower your taxes.
@@normt430 You would be surprised at what you can do to lower tax burden with pension income. No different than any other income with that exception that many states don’t tax pensions at all.
I have 2 pensions, I claimed 1 so far at 63
What’s a pension?
165K a year!? Absolutely, fantastic…well done!!!
Azul I have a pension should I take the lump sum or the monthly annuity?? Its a solid company. Doing the 6% rule I should take the monthly payment, the payout % is 7.4%. Any ideas ??
I had a choice.. more pension more taxes or less pension and more freedom. so I retired at 59 w pension with health coverage and medicare refund 5 years ago. No regrets taking the early retirement even though i took the reduction of 15% pension.
Work for a major University, have a pension and a Annuity , from this job.😊
I have three pensions one year away from SS. I live on a third of my pensions and save the rest. All my pensions are Federal. I have more savings than I will ever spend. I pay cash for needs and wants. Large expenses? I could buy multiple homes with cash. The only investment I have is laddered CDs to hedge against inflation. The government gave me income, the government takes some back in the form of taxes, I made my living in mathematics I run numbers around accountants, they can’t help me any more than I can help myself, I can read tax law, and to make it simple you can buy tax software the accountants use. I help expats around the globe when they are in financial trouble, most had investments and savings that they outlived. Those on pensions seem to do better.