Are you set for retirement?

2014-09-02T00:12:03-04:00

With more and more people are working well into their 60's and people taking less vacations, lets get a discussion rolling on what you are doing to secure your financial future.

Response by PO1 Private RallyPoint Member made Sep 2 at 2014 12:36 AM

2014-09-02T00:36:02-04:00

Saving is a MUST. The earlier, the better. Just put it aside and FUGGEDABOUTIT!

Thank you for bringing it out, SGT Hartle

Response by SGT Tyler H. made Sep 2 at 2014 12:45 AM

2014-09-02T00:45:31-04:00

Are you working for your money or is your money working for you?

Response by SSG V. Michelle Woods made Sep 2 at 2014 2:20 AM

2014-09-02T02:20:37-04:00

I've started thinking about this. At the earliest, I have 15 years left before I can retire.
How much is enough to save monthly? I don't ever plan on living fancy.

Response by LCpl Steve Wininger made Sep 2 at 2014 7:56 AM

2014-09-02T07:56:37-04:00

Absolutely not set. At almost fifty, I am almost set to begin a new career, I figure I will retire when I expire.

Response by CMSgt James Nolan made Sep 2 at 2014 8:10 AM

2014-09-02T08:10:16-04:00

Active and reserve need to take full advantage of Thrift Savings.

If you are getting out of AD, you should fully consider the Guard/Reserves as a potential for retirement.

You can not contribute too much to your own retirement.

You need to start saving for retirement at age 21 and keep it going.

Response by Maj Chris Nelson made Sep 2 at 2014 10:12 AM

2014-09-02T10:12:12-04:00

I really wish that when Thrift Savings came out, someone that actually knew what they were talking about would have sat people down and discussed it. I never did it....and finally received a briefing less then 1 year ago..... I don't think that 2 years will be enough, so I am not going to do it....but would have been helpful 15 years ago!

Response by MSG Wade Huffman made Sep 3 at 2014 9:25 AM

2014-09-03T09:25:34-04:00

The biggest hurdle for me right now is getting the house paid off. Took a 30 year mortgage when I purchased it in 2006 for what was (then) a good rate. Refinanced 2 years ago for 15 years at a GREAT rate (2.785) and am paying on it like a 10 year throwing extra at the principle each month (hopefully only 8 years to go!). Between my military retirement, my county retirement (which I am now vested in, although I will, in all likelihood continue working until I'm at least 65, health permitting), my wife's IRA, and (maybe, if it's still there) social security, I think we'll be ok.
Could I have done better? You betcha! Hindsight is always 20/20. I do wish that TSP had been available when I first enlisted, but by the time it became available I was too close to retirement for it to have been very beneficial.

Response by SSG V. Michelle Woods made Sep 3 at 2014 10:26 AM

2014-09-03T10:26:12-04:00

So basically what I gather so far from this discussion is I need to
1. Save even more money in a fancy account
2. Get married
3. Never have kids

Ugh this sucks!

Response by MAJ Private RallyPoint Member made Sep 3 at 2014 10:49 AM

2014-09-03T10:49:08-04:00

LOL! No.

Response by MAJ Dallas D. made Sep 3 at 2014 11:46 AM

2014-09-03T11:46:15-04:00

I have always thought of retirement as a 3 legged stool, but all the legs are not the same length.

I am very happy to say one of those legs is my military retirement.

One would be my investments, I have been putting money in several accounts for over 20 yrs and I started the TSP the first month it was available to us. Where I work now matches everything I put into their plan so I max that as well.

Finally the shortest leg would be Social Security. As I have grown older I no longer really think this is anything I will ever receive and I no longer even count it.

Bottom line is my advice is to save as much as you can starting as young as you can. I really wish I had starting setting aside money when I was a private instead of waiting until I had been in the Army 10 years. That 10 years could have added up to a lot of money.

Response by SFC(P) Tobias M. made Sep 3 at 2014 12:52 PM

2014-09-03T12:52:52-04:00

SGT Tyler Hartle this is a a great question. I am here to help anyone that has this same question. I work in an industry that helps answer this question. Everyone feel free to hit me and and I will do my best to help you answer this question or even help you to a point where you can say yes to this question.

Response by SGT William B. made Sep 3 at 2014 1:43 PM

2014-09-03T13:43:15-04:00

This topic needs to be stickied at the top of the discussion boards for a couple weeks. This is something that young soldiers *NEED* to understand right-freaking-now, especially if they're getting married to the first person they meet after basic and start pumping out kids.

My background: until this past year or two, I was not a compulsive saver. I lived paycheck to paycheck. Never had much debt, usually no more than 300-700 any given month, but I didn't make a whole lot either. Only savings I was able to get throughout the years was a compulsive habit of throwing money into TSP and 401k plans, but never really took an effort into managing them. Here are my lessons learned:

1. It is almost never too late to put yourself in a better financial position.

2. Take advantage of "free money" where you can (especially if your employer matches your contributions to your 401k).

3. Take a proactive stance on managing your money, particularly in understanding what kind of allocations you can make in your 401k/IRA/TSP accounts. Saving money in the TSP is almost always a great thing, but you should also know how to change allocations within it so you don't make just a flat 2% a year on those savings.

4. If you invest at all: diversify. Do *not* put your eggs in one basket, and do your research.

5. In relation to #4: if you want to invest, but you can't imagine what it would be like to wake up the next morning and see your entire investment gone, don't invest, or at least find something more stable, like low-risk mutual funds or bonds.

6. Keep at least three months of income available on hand for emergencies. I recommend four to six from personal preference.

7. Debt is not entirely bad as long as it is managed correctly. Pay your bills on time, and try to not to use more than 30% of your max available credit a month.

8. Make a realistic savings plan, with goals, for 5, 10, and 20 years. This gives you a roadmap, and lets you calculate if you need to make adjustments.

If I think of anything else, I'll make an edit.

Response by SGT(P) Private RallyPoint Member made Sep 4 at 2014 6:44 AM

2014-09-04T06:44:23-04:00

I don't plan in retiring until I'm forced to at gunpoint!

Response by CW5 Sam R. Baker made Sep 4 at 2014 10:21 AM

2014-09-04T10:21:42-04:00

My daughter is 21 and came home this past weekend just to ask me what to with her stipend from USNA. The obvious answer is for her to start an IRA which I did not even think of till I was 31 and ran into the folks at First Command. The only credit I can give them is that they got me thinking and started in looking at my future (end) and while no where near being set (had another kid) am at least not in the red.

The 10% rule to start is great and if possible all or a high percentage of each raise you receive whether the annual or promotion increase.

Response by TSgt Gregg Palmer made Sep 4 at 2014 12:17 PM

2014-09-04T12:17:55-04:00

I currently get 2 pensions and I'm set to start getting my 3rd pension next March. I'm involved with a great VIP travel club and I'm planning on doing a lot more traveling in the future!

Response by CPT Jacob Swartout made Sep 4 at 2014 9:41 PM

2014-09-04T21:41:43-04:00

I started my retirement many, many years ago. Been saving a few extra dollars to ensure I have medical and life insurance covered. Working on providing college money for my kids too. Not fully there where I want to be but do have an investment to take care of my family going. If anything it is better than nothing at all.