Ask Experts Questions for FREE Help !
Ask
    Erock89's Avatar
    Erock89 Posts: 1, Reputation: 1
    New Member
     
    #1

    Oct 16, 2014, 09:50 PM
    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
    J_9's Avatar
    J_9 Posts: 40,271, Reputation: 5643
    Expert
     
    #2

    Oct 16, 2014, 09:54 PM
    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.
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
    Expert
     
    #3

    Oct 17, 2014, 04:48 AM
    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.
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
    Uber Member
     
    #4

    Oct 17, 2014, 04:55 AM
    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.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,292, Reputation: 7691
    Expert
     
    #5

    Oct 17, 2014, 05:05 AM
    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

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Retirement [ 7 Answers ]

Ive been working for Big Lots 12 years now. I know I can retire but my question is -What is Big Lots retirement package? I have read they have one but don't know what it is.

How to Write in a Retirement Card Message when Retirement Day? [ 0 Answers ]

How to Write in a Retirement Card Message when Retirement Day for teachers,employees, military and other people who want to retired. At this time, what do you do for them?How to do it and how to express you.

Honorable retirement, no retirement pay [ 0 Answers ]

I received an honorable retirement from the U.S. Air Force after 27 years of service. When I reached the 25 year mark I applied for retirement and it was granted. However, after my retirement was approved I was placed on an administrative hold, my retirement orders revoked, and court martialed...

The Best Retirement [ 7 Answers ]

I am over 45. What are some of the better retirement funds to put my money into at this time? Or would an annuity be better?


View more questions Search