Retirement Savings Plan Question

[Pete Incaviglia]

So, work will match any contribution I make to our new "group retirement savings plan."

However, the most I can contribute and have matched is 2%.

I will contribute the 2% max and put it in a "safe" and "moderate" plan.

However, I can choose where I want my company's contribution invested. I'm thinking that since it's not my money, I should invest it in a "higher risk" fund.

Does this make sense? Do I make sense?

 

[imjustagirl]

I'd put in WELL over 2 percent if you can afford it. They usually recommend 10 percent. I'm only doing the 4 percent my company matches right now, but as soon as I get my credit cards paid down, I'm upping that a lot.


Oh, and the risk level has more to do with your age than it does whose money it is. Is your plan with Fidelity by any chance?

 

[slappy4428]

Isn't everything right now a "higher risk fund?"

Be safe now, when the market gets better risk a little more... atthe rate the economy is going, Savings Bonds are looking pretty good.

 

[Pete Incaviglia]

I'd put in WELL over 2 percent if you can afford it. They usually recommend 10 percent. I'm only doing the 4 percent my company matches right now, but as soon as I get my credit cards paid down, I'm upping that a lot.


Oh, and the risk level has more to do with your age than it does whose money it is. Is your plan with Fidelity by any chance?

I already contribute 7% on my own, through my financial adviser.

I'm just seeing this as hedging my bets. It's a little extra cash for retirement and it's their money after mine.

Thing is, my company will only match 2% for me because I'm a relatively new hire. Less than two years from now I can jack it up to 5%

Not Fidelity though!

 

[Freelance Hack]

The rule of thumb is to max out your company's match -- otherwise you're leaving money on the table.

Where to invest it really depends on two things: 1) your age and 2) your investment comfort level. Younger investors can look to higher risk funds in an attempt to garner a higher reward.

 

[imjustagirl]

The reason I asked about Fidelity is they have a quiz you can take online to figure out what group you fall into on the risk scale. I'm actually apparently not as willing or needed to put my money in the riskiest as I thought. I don't have any other savings, so they suggested I go with the aggressive growth group, not the high-risk aggressive. Still higher risk than most, but not the highest.

 

[ArnoldBabar]

Life insurance? Retirement savings? What's with this sudden streak of responsibility, Pete? Next thing you know you'll be putting coasters under your drinks, and it's a slippery slope from there.

 

[trifectarich]

Over the next 9-12 months, I wouldn't take any more risks than you have to. What do you see on the horizon that's bright and cheery and rosy?

 

[Pete Incaviglia]

Over the next 9-12 months, I wouldn't take any more risks than you have to. What do you see on the horizon that's bright and cheery and rosy?

True, but these savings aren't going to be needed in the next 9-12 months. Heck, they won't be needed for the next 9-12 years even.

I think I'm going to contribute my 2% to something moderate and the company's matched 2% to something of higher risk — it's not my money, it's free money.

And then, of course, like I said, I still have my personal savings, which is about 7% of my income each month being invested elsewhere.

 

[Pete Incaviglia]

Life insurance? Retirement savings? What's with this sudden streak of responsibility, Pete? Next thing you know you'll be putting coasters under your drinks, and it's a slippery slope from there.

Yeah, I just love my little one too damn much to even think of her being left with some awful circumstance should I die.

Also, I want to retire comfortably, move to a city with an MLB team, buy season tickets and keep score at 81 home games.

The will shall be written shortly, too. Probably after we buy a house this spring.

 

[mustangj17]

The rule of thumb is to max out your company's match -- otherwise you're leaving money on the table.

Where to invest it really depends on two things: 1) your age and 2) your investment comfort level. Younger investors can look to higher risk funds in an attempt to garner a higher reward.

Freelance hack has got it.

The older you get the more conservative you should get on your investments.

 

[BTExpress]

Good luck. I would be scared to death to buy a house right now.

Heck, I'm scared to death with only 3 years left on my mortgage.

And the $#@&$@ IRS may screw me out of $1,000 with their $#@&$# laws about immigrant spouses.

 

[User 1019]

Contribute just enough to max out the company match, then find something else to do with the rest of the money you want to save for retirement.

 

[Pete Incaviglia]

Good luck. I would be scared to death to buy a house right now.

Heck, I'm scared to death with only 3 years left on my mortgage.

And the $#@&$@ IRS may screw me out of $1,000 with their $#@&$# laws about immigrant spouses.

I'm pumped to buy a house. We have a big down payment. We have good credit. Interest rates are low. Housing prices are down. I think it's the perfect time to buy, if you can.

And, if I lose my job, so be it. We have an emergency savings account that would float our mortgage payment for 17 months.

 

[Buck]

I've gone with the smoking-drinking-poor diet retirement plan.
No savings necessary.