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-   -   What do I do about retirement? (https://www.askmehelpdesk.com/showthread.php?t=803085)

  • Oct 16, 2014, 09:50 PM
    Erock89
    What do I do about retirement?
    I am 25 years old, there have been many rumors in circulation that by the time I would retire (60yo) that there will no longer be a retirement fund to pay people out. Would it be smart to take the 10% fee and retrieve my retirement early (considering I would work until I couldn't anyway) and pay off all my debts?

    Concerned young adult
  • Oct 16, 2014, 09:54 PM
    J_9
    Those rumors have been going around for years. Taking 10% out is a good start. Also, I don't know anyone who retires at 60 unless they are wealthy.
  • Oct 17, 2014, 04:48 AM
    ebaines
    What 10% "fee" are you referring to? At your age you should be (a) putting as much into your retirement fund (401(k) and/or IRA) as you can afford (at least 8% of your pay), and (b) retiring any outstanding debt, especially high interest rate credit card debt. If you are asking whether you should pull existing funds out of your retirement account - absolutely not! And as for whether Social Security will still be around when you reach retirement age (67 years old) - I would bet yes, though there may be significant changes by then.
  • Oct 17, 2014, 04:55 AM
    smoothy
    I agree with everyone else... you ASSUME there won't be anything but what YOU contribute to an IRA or 401K plan, put as much as you can afford now and don't stop... thanks to compounding interest your contributions made now will grow significantly over time. Much more than ones made later in life.

    If SSI still exists when you retire... consider it a bonus.
  • Oct 17, 2014, 05:05 AM
    Fr_Chuck
    We of course do not know, where you have your funds at.

    Most 401K plans and most retirement plans have money invested in 100's of various companies. Now in low times, they can lose money, but in other times they can gain well also.

    I actually think a higher about than 8 percent to invest and think 10percent at the least.

    But you need to also deal with your debts, and stop adding any more debt.

    Take the highest interest debt and try paying double payments each month.

    I lived for years in America with no debt what so ever. I paid cash for cars and even my house. Much depends of course on your income and the budget you can do

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