Looking ahead of 2011 and 2012...

**LMA** · 01-07-2010, 06:34 AM

If what you are looking for is retirement and it is 30 years away it sounds like you should be well on your way.

But let me ask you, what do you define as retirement?

How would you know you are ready to retire?

I would suggest you focus better on achieving a certain financial state. Like being debt free with $1.5M in the bank, for example.

The retirement idea gets sold to us by a lot of people but what does it mean? What if you are doing something you enjoy and you don't wnat to retire?

That's just my opinion...

**Snippa** · 01-07-2010, 07:02 AM

Being one who's hubby is getting ready to retire next year, we've realized that you can't plan too well!

Good job on getting an early start. It does sound like you're on the right path. I agree with LMA, though. It will REALLY be helpful for you to look at your goals for retirement to be sure you're doing enough.

Dee

**ScrimpAndSave** · 01-07-2010, 09:33 AM

30 years from now...I don't know exactly how much I will need each year to live. I'm assuming I will need around 2 million with inflation. I have a pension as well - so I don't know how much I should have in the bank to supplement that.

**banditfist** · 01-07-2010, 05:17 PM

I think that it would be most prudent of you NOT to calculate the pension into your equation. The public sector pensions are terribly underfunded and PA is no exception. Something is going to have to give. The math never fails.

But, being able to max a ROTH IRA and your 403b is going to pay incredible dividends at your age now.

**jasonnoguchi** · 01-10-2010, 02:03 AM

30 more years to go is the right time span to start investing for your retirement. You cannot imagine the kind of panic those folks that are only 5 to 10 years to retirement are facing right now with most of their pension wiped out recently.

**Joan.of.the.Arch** · 01-10-2010, 09:10 AM

Banditfist says Pennsylvania public pensions are terribly underfunded. Are the teachers pensions funded the same way as other public employee pensions? In my state, teachers fund their own pension system--there is no state/taxpayer contribution as there is for most other employees. Mandatory contributions are occasionally increased. Just saw a newsletter which says that contributions are going to increase from 13.5% to 14.0% of gross next fiscal year. If your system is similar it is probably a bit more stable than more general public pension systems.

Anyway, I think you are taking care of things well. It is indeed very hard to look so far into the future, yet you will have many opportunities to re-evaluate over the years. You will be able to change your strategy and goals of the years if something different seems to fit you.

I read recently that teachers are about the most conservative investors, but that they also tend to be among the most persistent savers so that by the time retirement rolls around they are usually well set and understand what the future seems to hold for them.

**ScrimpAndSave** · 01-10-2010, 09:23 AM

Hi Joan! I have a mandatory contribution of 7.5%. For the teachers that are retiring now, they average their top three years of highest pay and they are given 100% of that amount every year until they die.

If that stays in tact by the time I retire - I should be in excellent shape.

**Joan.of.the.Arch** · 01-10-2010, 09:43 AM

Oh, my! That IS a generous system and I don't think it is reactionary to question its sustainability. Personally that would make me feel not secure, but insecure. I would be looking for more retirement savings...just in case. Even so, your $16.5+ per year is good. What percentage of your income is that?

**ScrimpAndSave** · 01-10-2010, 11:30 AM

Well, the $5,000 for my Roth and $16,500 is close to 33% of my income. This is not counting the 7.5% that is already being taken out.

I'm setting a more realistic goal of putting $5,000 into my Roth and $5,000 into a 403b...this way I still have a healthy emergency fund and other savings.

**Mike75** · 01-10-2010, 11:36 AM

Well I can't say that you can be sure of your retirement (you can never be sure with this economy) but I would say that you are surely on the right path.

**daviddane** · 01-16-2010, 04:18 AM

I like to think about the present and work on it....rather than thinking about the future.

**maat55** · 01-16-2010, 06:08 AM

Originally posted by daviddane View Post

I like to think about the present and work on it....rather than thinking about the future.

So where does that put you at 65? Likely broke and wondering why you didn't plan ahead.

**jefffou** · 01-16-2010, 02:07 PM

Originally posted by ScrimpAndSave View Post

Well, the $5,000 for my Roth and $16,500 is close to 33% of my income. This is not counting the 7.5% that is already being taken out.

I'm setting a more realistic goal of putting $5,000 into my Roth and $5,000 into a 403b...this way I still have a healthy emergency fund and other savings.

That's pretty strong right there.....Great job!

Jeff

Looking ahead of 2011 and 2012...