I am trying to know how nervous I should be if I get hit with a layoff. I have about 25 years of service and I am 52. I have over $700,000 in my 401k.
What are your 401k balances? Am I ahead of the game or in bad shape if I was forced to 'retire' or take a job making a lot less?
Anyone else care to share age and 401k balance?
Who cares about you ? Randy and the Stankmeister have millions and millions and will get more bonuses after they fire you. Isn't that the only thing that matters at the T ?
I am almost 45 with $422k in 401k, ROTH IRA and pension. No debt but house mortgage but it is up for sale and going to live totally debt free in another home. I advise you to pay off everything you can and live below your salary. Most people can live on a lot less than they make.
I’m 43, and I have been super aggressive at saving since I was 18, I have just at 800k between my 401k, roth mutual and lump sum (if I had to leave today) 20 years in and house nearly paid off, my plan was always to retire from here hopefully at 50 with 2 mil with no debt, and begin collecting at 55 at 4% to prevent ever running out, a lot of how much you save or will need will depend on lifestyle and debt, I don’t need a lot to live on which is how I was able to save so much I never wanted to become dependent on 80-100k a year, one big thing people always forget to remember is plan for inflation, about 4% per year, it gets a lot of people into trouble as everything gets more expensive over time. I wish you well your better off then most so good work.
I had planned on retiring at 61 and was obtaining those goals until I was fired by my young whipper snapper of a boss at age 45. I will be working until the age of 72 if my health holds up. Hoping to get disability first since I now have an illness because I’ve taken care of myself since getting fired but, I have managed to pay off all my debt except for the mortgage that I owe for the next 7 years.
Wondering what job you held that at age 53 you’ve got a pension of 450K! That’s impressive!
@1slj, really ... Randall and and John have time to read this forum and track us down. I think they have more important to do. Also many post behind VPN.
Who in their right mind puts their financial information out on the web? Regardless if you are anonymous now people think that people who work here have a good deal of money. Thanks a lot as that is not the case for the majority of us. Please be very careful what you post here. There are trolls every where and they can very easily figure out where the data you post here comes from as can Randall and John.
Thanks so much to everyone who answered and helped me with this question.
Except for the disgruntled person who misspelled the F word. They clearly have an anger management issue.
This is a difficult time and I'm just trying to gather some advice and navigate the turmoil.
I’m 60, and retired this year with 1.6M, which includes pension lump sum which I rolled over. I’m taking around 5% now and will probably dial back when SS eligible. I hope it’s enough.
well good for you, i guess
No one can force you to retire. You may lose your job but you are not being forced to retire. Go get another job.
God bless you, I'm 62 and not even close to numbers like that.
Move to a state that has no state income tax, even for just six months and one day. A 401K with $700K in a state without a state income tax is worth about $500K vs $400K in a state with a state income tax. These other states also don't tax social security. When I retire, I am going to snow bird in Florida as I dislike snow/cold weather and love warm weather and really do not want to pay taxes on 401K and pension dollars.
I’m 40 years old and have just under 200K in 401k, also have started separate IRA and don’t have debt other than mortgage but still trying to get kids through end of high school and college. By mid 40’s I plan to put more into my 401k & IRA. I’m well aware that I’ll need to work until 62 years old then my plan is to live off my pension and SS but the 401k will be rolled into IRA for long term savings. I can’t imagine what insurance and end of life care will cost if I live another 40 years. I just wish I’d put more into investments when I was in my 20’s.
"Over age 50 you are allowed 4 withdrawals per year".
This is incorrect information. Generally, withdrawal from 401K before 59 1/2 will result in 10% penalty, with a couple exceptions:
There is a "Rule of 55" for early withdrawal from 401K that would allow for penalty free withdrawal, after your turn 55, provided that is the year you left the job. There are very specific rules around this that you should familiarize yourself with.
There is another way to withdraw 401K funds penalty free, google IRS rule 72(t)...it gets a little complicated but it involves setting up Substantially Equal Periodic Payments (SEPP)...which you have to continue until age 59 1/2 or at least for five years, whichever is longer to avoid getting hit with the penalty.
"I am a prem slave with a pension worth $2000 and nothing in my 401k because I earn so little that everything goes toward rent and putting food on the family's table."
How can you increase your marketable skills?
I took an entry level job at 18 and got my first layoff scare at 22. Now I'm in my early 50's and retirement ready. The first few jobs I had no longer exist, the last few didn't exist when I started.
All my life, I've taken both occupational and college courses to improve myself. Many of the community college and adult ed courses I took didn't result in a degree or certification, but every one made me more employable in some way. None were expensive. In hindsight, some courses didn't even seem to add a specific skill, like Public Speaking or Technical Writing.
I've gotten new assignments and promotions that were aided by the fact that I was IN school, even if I hadn't finished a specific program. I've also picked up leads from contacts I've made while learning.
As a Prem Tech, you may have a crazy schedule that makes traditional attendance difficult or impossible. Anything you can do to change your schedule, pursue non-traditional learning paths, or even change jobs will change your future.
I wish you the best.
(I'm the same person who wrote the response with the 100k retirement example)
My plan was put together like this:
ex:// $100k household income - 15k retirement plan contributions = 85k
85k - 40k in pensions = 45k
45k * 25 = 1,125,000
You'd need $1.125M in retirement savings to maintain you current standard of living.
Can't reach your savings goal? You'd need some combination of continued income (Small biz, part time, etc...) and reducing your monthly expenses.
My numbers already work with my wife and I in our early 50's, so we're not really concerned with paying off a 3.25% mortgage or changing other things. I joined the 401(k) at 19 and split the take home portion of nearly every raise with my retirement plan.
I didn't include Social Security in my personal calculation as I plan to wait as late as possible to take it, medical expenses rise as we age, and I don't know if savings or income will affect my payments down the road.
I am a prem slave with a pension worth $2000 and nothing in my 401k because I earn so little that everything goes toward rent and putting food on the family's table. After I eventually get surplussed from this c-aphole I will find a job somewhere else. I will never have the luxury of retirement. Thanks AT&T!
I retired with abt $4M 2 yrs ago. It depends on your lifestyle. The 4% rule should apply. I keep my fund invested in good growth stock mutual funds that have historically returned about 12%. So if you withdraw 4% and get 12% you will never run out of money.
Don’t compare yourself with others. Your own “enough” is unique to your situation.
Remember you will get a pension and SS. . If you have your house paid and no debt. You will be fine. With on the order of 50k/year adjusted for inflation. You need to talk with an advisor. Any way it would be good to get a part time job any way just for health reasons. You need a schedule otherwise people mostly stop living pretty quick.
Over age 50 you are allowed 4 withdrawls per year. I pulled from mine before 59 1/2, You should be fine, just don;t overdo it in your enjoyment. Stay as long as possible to maximize.
You are doing fine. You’ll just need to manage your lifestyle post retirement. If you have a paid off home and little to no debt you’re in great shape.
Biggest thing is managing your bills.
You are in good shape, but IIRC, you will pay a 10% penalty for 401K withdrawals before 59 1/2 years old. There -might- be a hardship exception for loss of employment, check with your accountant before making a withdrawal to be sure.
I would plan to work another 10 - 12 years and max out your contributions into a Roth.
i am 53 and @ $1M .... and ahead of the below recommendations
By the time you're 30, the company calculates you should have saved half of your annual salary. If you are earning $50,000 by age 30, you should have $25,000 banked for retirement. By age 40, you should have twice your annual salary. By age 50, four times your salary; by age 60, six times, and by age 67, eight times.
Not enough. People are living to 100 yr. Look at Kirk Douglas, 103. Just kidding. $700,000 is not bad. Buy Apple, Microsoft, Google and Amazon with your money. You will be rich. On top, adjust your life style for the first ten yr. and you will do fine.
Not that hard if you harness the power of dividends/passive income and make some adjustments in life style plus a part time job doing something you enjoy maybe?
Talked to a few financial guys and they have said the majority of people they deal with are below 200k or less so you are in good shape. I would take the buyout and talk to a financial guy and get the money working for you. Just make sure it is someone you trust and your close friends have used or recommend.
I would say you’re better off than most and will make it but it’s not enough to maintain the standard of living you are probably used to. You’ll still have to make some sacrifices.
I am 53 with 30 years service. Raised a daughter on my own and paid for all of her college so only have $370k in 401k and $450k pension. I’m retiring by end of March. But my hubby has a pension too. House and cars paid for and no credit card debt. I hope we’re prepared enough because it’s happening!
IMO, I think you should plan on working 8-10 more years at least. Keep saving the max 401k contribution amount as early in your career as you can. At age 50 bump up your contributions to the "catch up" amount. Same goes for maxing out your contributions to your HSA.
$700K may be enough if we knew the whole story? Do you have a pension? How much debit do you have? etc,etc, etc.
I left AT&T 6 years ago at 52 years old and live very comfortably right now. I had/have a great financial planner that helped me make that decision you are wondering about right now. Get a good Financial Planner and let them help you make the decision and not folks on this layoff board.
So with 700K need to live on this for 30-35 years. Get your home and cars paid for, you will have to live on 20K-23K per year.