Localfund.com - All about Fund and Investment
*Home>>>Bond Investment

How do I know if I have put together a good retirement plan?


I just have a question regarding whether I am covered in planning for my retirement:

I am 53-years old and have a SavingsLink Plan of $10,000 with an interest rate of 5.5%; a Roth IRA of $100 in a bank at 2%; a Retirement Plan of 4 Mutual Funds: AMANX, AMAGX, SSAIX and SWHFX which covers investments in the Large Growth, Large Value, Bonds, Health Care, Tech, and International funds in the amount of $1,114.00; and a 401(k) which I invest 5% of my paycheck and the company matches it with 3%.

Do I need to make any changes or additions to my retirement plan, or am I covered as far as planning for the future?

No.
1) Having only $11,214 saved by age 53 is not enough.
2) You should be able to get far more than 2% on a Roth IRA (although maybe not with only $100 in it).
3) With total 401K contributions (by you and the company) of 8% of your paycheck, when you turn 65, the total of the contributions will still be less than one year's pay.

Here are some suggestions:
1. Increase your 401K contributions to at least $15,500 per year.
2. Take the Roth IRA somewhere with a better rate of return (over 4%) and contribute at least $4000 per year.

This alone will not be enough, but is a start.

Just remember when you retire that you need to have as much income as you do now to live the same lifestyle. Your expenses will only go up not down because of higher insurance costs, medical costs, inflation etc. If you have a home, it can also be considered an asset since you could always get a reverse mortgage at 62 for extra cash. Buy long term care insurance immediately before the rates get too high. For your age your savings are a little low but I don't know how much you have in your 401K. You would also have to take into consideration if you get a pension or social security (if its still around). You also need to look at what you will need to pay for medical insurance, do you have life insurance, have you done all your trust planning. Most employers will offer seminars with financial planners for free for employees. I would take advantage of that if you can.

I don't like your retirement plan at all. (I am a Portfolio Manager)

Is the 5% of your paycheck the maximum your employer will match?

You do not say how much you have in your K101(k), and this makes it impossible to make good calculations.

But if you have been paying a total of 7% into it through out your working life, you may have enough to live very modestly. You really want to get all the facts and ask again.

Tags
  Business Investment   Business financing   Business Invest   Business Debt   Bond Investment   Angel Funds   Alternative Investment
Related information
  • Retirement Planning: What do I do with my 401k and IRA?

    Your options are the SAME as they are at ANY age. The 401(k) should be rolled into an IRA when you leave the company. An IRA can be invested in nearly ANY investment. A GOOD stock mutual fund ha...

  • Insane Returns? Impossible? Maybe? Yes?

    When did you begin trading this method? What margin do you use? What was your starting balance? What pairs do you trade? Have you ever had a losing week? What positions did you have between Feb ...

  • This is my question?

    Muni bonds are inappropriate for any type of qualified retirement account. The interest earned on muni bonds is exempt from federal income tax (and possibly state income tax). As a result, the rate...

  • Government savings bonds?

    government savings bond. Small denomination bonds issued by the U S government for individual investors and savers, with tax deferred interest payments. There are currently 2 version EE bonds an...

  • How shares & investments work,stock exchange?

    Shares: in terms of business organisations share is the portion of ownership that any person has in the company or firm. There are two ways to get the finance in companies: 1. internal capital ...

  • Capital gains tax question regarding investments?

    The gain on the sale of stocks is taxable. If you sell within one year, it is short term gain, which is taxed at your normal tax rate. If you sell the stocks after one year, you have long-term capi...

  • What is more profitable (stocks, bonds, CDs, mutual funds) and can you explain some things about them?

    First off, I love your mom's promise, definitely a great way to teach you about the importance of saving for your future. But, given that you are only going to be 17, stocks are definitely a ...

  • Premium Bonds Question?

    It depends.... The most you will get from the Bank for your 拢10,000 is approx 5% (ie: 拢500 a year). The return from Premium Bonds is more difficult to forecast. In theory your chance of winn...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster