Retirement savings ....Yikes !

[Gale Hawkins]

I've just read this whole thread with great interest.

One thing I noticed is that almost everyone who said they truly feel secure retiring has some sort of government pension in line, whether it be Fed/State/City.

Do they not know they may be seeing reduced payments sooner than later as more baby boomers load on to the plans?

Locally I have been warned the rest homes may be closing some homes if reimbursements keep being cut or lagging behind. The means more and more families may have to pick up those in rest homes today and take them to live with them. Some are doing it anyway to get that extra income.

 

[ultrarunner]

brin, our 3.5% is from an in house 403(b) plan. It's very controlled and not many people can be in this one, specific for our organization. I've seen it from about 11% down to present 3.5%.

The company 401k had a hidden cash option that could never go below 3%...

Well, we all learned never is just a fancy word for until the time they don't want to and get out of the 401k business...

Guess this is why I am so skeptical of financial sales people... not to mention the shuffle that occurs when the markets turn...

 

[zonta223]

Mac...where are you getting 3.5% interest....? Can't be CD's right ? If so ...tell me where...But yes you are thinking right...you are maintaining your principal and interest rates will go up ...sometime...I think...?

Try here

InfoChoice.com.au

4 to 5% is standard for Australian Banks. Some of the richest (per capita) highest profit making banks. And they will negotiate higher rates
Got about 10 weeks to go and I pull the pin on working for bosses. Will only have one boss to worry about and she's pretty good to me.

 

[Gale Hawkins]

That is a good rate compared to our USA options.

 

[ultrarunner]

Best I could find at a regular brick and mortar for an insured account without withdrawal limitations is 1% here in the States and even the Credit Union is about 1/2% and the local Bank about a 1/4%

 

[schoolsout]

Australia now...

The Next Domino: Australia Doubles Tax On Retirement Savings | Zero Hedge

 

[schoolsout]

I've just read this whole thread with great interest.

One thing I noticed is that almost everyone who said they truly feel secure retiring has some sort of government pension in line, whether it be Fed/State/City.

many pensions are underfunded...and a ticking timebomb. Wall Street loaded a lot of pensions up with the garbage MBS and crap they were peddling. Found the perfect waste receptacle for them and that is pension funds.

AAA ratings bought and paid for via ratings agencies...in order to sell to funds. Nice, eh?

 

[MacLawn]

The company 401k had a hidden cash option that could never go below 3%...

Well, we all learned never is just a fancy word for until the time they don't want to and get out of the 401k business...

Guess this is why I am so skeptical of financial sales people... not to mention the shuffle that occurs when the markets turn...

ultra, ours is a church organization that only invests/loans to our own. That's what I meant by in house. Unless the gubmint were to take it, it should be safe. We shall see...

 

[ultrarunner]

ultra, ours is a church organization that only invests/loans to our own. That's what I meant by in house. Unless the gubmint were to take it, it should be safe. We shall see...

I have friends that are Mormon as well as Mormon neighbors and I have always admired how self-sufficient they tend to be and very good neighbors too!

I imagine other religions might be similar?

 

[zonta223]

Australia now...

The Next Domino: Australia Doubles Tax On Retirement Savings | Zero Hedge

Thats interesting because I nor any of my friends can find anything out about this. And as our budget is not set until May I will wait and see. Also the article was talking about Superannuation funds not bank deposits two completely different things. Point missed in the article is that tax on inputs into superannuation from wages etc are taxed at a rate of 15% a rate much lower than normal salary taxation. Companies are forced to contribute 9% of your wages into a superannuation fund. This contribution taxed at 15% is deducted from your salary taxable income. therefore you pay less income tax Also if you chose to add any money you have paid tax on from salary to investments etc goes into superannuation TAX FREE.
What has been said is that people earning over a$300,000 a year in income will no longer get lower tax concessions on money put into superannuation. I think at the moment something like 75% of the government tax rebates go to the plus $300,000 income bracket whilst the remaining population only gets 30% between them. Do I agree with this....Sure do. Why should I on a low income give tax concessions to someone earning $300,00 a year. If you earn $300,00 a year and can't save for your own retirement don't come looking for me to help you

And if you worry about bank deposits look here
http://www.canstar.com.au/term-deposits/government-deposit-guarantee/
The government guarantees the first A$250,000 in your savings account. And apparently that is for each account you own......no limit