Posted on 12/28/2022 7:21:31 AM PST by Red Badger
My wife was examining her 401 balances yesterday as I began getting documents for our ITRs. She said I did not realize my 401 actually went down 25% this year. She was planning on retiring this coming year and is now “rethinking” that.
I pointed out it is all funny money anyway. The big winners from prior years all have Price ratios of 1000 to one. Eventually that catches up with them. Even the oils I have 100% invested in are down 20% or so this year and they make money and pay dividends. Like I said, all funny money. My advice, invest in wheel barrel making firms so you can cart your cash around.
Something else to consider, all those democrat bureaucrats around DC who are still working from home doing nothing of value will get a huge raise on Jan 1st.
The funds never seem to run low for welfare and illegals.
So yours is not a government pension plan?
The prevailing advice seems to be to wait to collect because you’ll get more, but I didn’t for several reasons: the economy and inflation, whether the funds will even be there later, and with my health issues, if *I’ll* even be around to collect.
I figure I might as well take what I can while I can.
I took SS at 66 1/3 when I was first eligible for my age group.
I out it in the bank, as I am still working.
I offset the taxes on it by putting a goodly portion of it into my IRA.
At the end of the year I fill out the 1040 to see how much I need to Add to the IRA, since you can make deposits all the way to April 15th for the PREVIOUS YEAR!................
“government pension plans are outrageous”
Not saying I don’t understand your sentiment, the Federal Employees Retirement System (FERS) ain’t all that great. Depending on how long you were in the federal system, and when you retire, you are looking at 1 to 1.1% of your high salary X the number of years. And that amount is before any survivor benefit, health insurance, and life insurance. So for me, with the fed being a second career (17 years), my gross is about $1,600. If I took all of the above, my net take home would be around $700 a month BEFORE taxes. I don’t need their health insurance or most of their life insurance (way too expensive). So, I am looking at getting $1,000 or $1.100 a month before taxes. That is as a GS-12. Just saying.
Same problem occurs when Congress passes laws & spending bills that negatively impact future generations. E.g., $1.7 Trillion Ominbus Bill, Expanded SS benefits, Medicare/Medicaid/Welfare/Food Stamps/Bail-Outs/Assorted Fed Grants & Earmarks.
The general public does not understand much about FERS at all—as you say.
One advantage of it is that FERS allows individuals to still collect Social Security at the same time, and also has a matching .gov contribution of 5% to the TSP.
With all three pieces in place it is a decent deal—though certainly not an extravagant one.
In plain English, Politicians overpromised to union thugs regarding their dues payors defined benefit plans in exchange for votes keeping the union thug President and the elected official elected. Both have long split the scene and are now laughing and golfing in Florida for us to bail out this political corruption.
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The numbers are that a little less than half of Americans have 401Ks, Roths or similar savings for retirement
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I should be safe for a while yet, I’m 77 and have income from stocks that gets reinvested. a 450% funded private pension plan plus a relatively high social security check. Health insurance provided by former employer, a Fortune 500 company.
87k new agents on the way.
the Constitution does not allow the government to take my money to pay people not to work....
just sayin....
From last year...
https://californiaglobe.com/articles/us-pension-funds-lost-400-billion-on-china-investments-in-july/
From September...
Oh, boy. Sounds like somebody’s fleeing the sinking ship. From earlier this month...
Note to CA pensioners: INCOMING!!!!!
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