Every now and again when I read through the headlines on my favorite money news sites, I see the same desperate-for-attention headlines proclaiming that “retirement is dead” and that we basically have no hope of ever saving enough money. How do they draw those conclusions? The usual suspects cited are the decline of pensions, the deflating of Social Security and the rise in costs as reasons why none of us can save and why we’ll all need to work until we are 80. And then there is my personal favorite: The 401k. They talk about the 401k like it’s a James Bond villain. When they compare the pension vs 401k, they describe it as a horrible and inefficient means for retirement. Basically, their message is that the 401k killed … [Read more...] about The Pension vs 401k – The 401k Did Not Kill Retirement
pension
SB1040 Pension Plan Options – Conclusions
For the last few posts, we’ve carefully taken a look at each of the options of SB1040 (known as Senate Bill 1040), a piece of legislation passed here in Michigan which forces all state school employees to change their retirement pension plans by selecting from one of three options. If you’re just now joining us, you may want to read my SB1040 Introduction post first. Throughout each of the options, there were a lot of ups and downs. Some put more money in your pocket right now while others have better long term potential. In order to really compare each of these options side-by-side, the best way I can think to show this is to graph them over the course of many years starting with Year 0 at retirement. Starting at Year 0, some of the … [Read more...] about SB1040 Pension Plan Options – Conclusions
SB1040 Pension Plan Options – Option 4
In this post we’re going to take a look at Option 4 of SB1040 (known as Senate Bill 1040), a piece of legislation passed here in Michigan which forces all state school employees to change their retirement pension plans by selecting from one of three options. If you’re just now joining us, you may want to read my SB1040 Introduction post first. … [Read more...] about SB1040 Pension Plan Options – Option 4
SB1040 Pension Plan Options – Option 3
In this post we’re going to take a look at Option 3 of SB1040 (known as Senate Bill 1040), a piece of legislation passed here in Michigan which forces all state school employees to change their retirement pension plans by selecting from one of three options. If you’re just now joining us, you may want to read my SB1040 Introduction post first. … [Read more...] about SB1040 Pension Plan Options – Option 3
SB1040 Pension Plan Options – Option 1 & 2
In this post we’re going to take a look at Option 1 & 2 of SB1040 (known as Senate Bill 1040), a piece of legislation passed here in Michigan which forces all state school employees to change their retirement pension plans by selecting from one of three options. If you’re just now joining us, you may want to read my SB1040 Introduction post first. … [Read more...] about SB1040 Pension Plan Options – Option 1 & 2
SB1040 Pension Plan Options – Introduction
When you were a kid, there were a number of stories and fairy tales about coming to a fork in the road and having to choose the right path to take. Of course, you can only choose one. And once you choose it, there’s no turning back. Some of the roads will lead you to safety, and other will lead you to danger! Unfortunately for the teachers of Michigan and my wife, this isn’t just a child’s story – it’s SB1040. SB1040 (short for Senate Bill 1040) is a piece of legislation that was passed here in Michigan which changes the pension plan options for all state school employees. Basically, each employee has to choose from one of four proposed options before October 26, 2012 that will significantly alter the structure of their pension … [Read more...] about SB1040 Pension Plan Options – Introduction
When Is the Best Time to Start Saving for Retirement?
Once you have your reasons for saving money and your motivation to one day retire, there’s only one thing left to do: • Start saving today! Why? One simple reason: The effects of compound interest. Simply put, when you save your money, the effects of compound interest cause your money to grow far beyond anything you could have ever saved on your own. See for yourself: … [Read more...] about When Is the Best Time to Start Saving for Retirement?
My “Money Design” – 2012 Update
As part of my annual financial checkup, I have updated my “Money Design” for financial freedom. This is my plan to one day automate my income rather than rely solely on employment income. My plan can be summarized by the flow chart below: … [Read more...] about My “Money Design” – 2012 Update
