<p>Knowing their situation now, they need to ‘regroup’. They may not be able to ‘afford’ to help pay on their students’ loans, however maybe they took out parent plus loans and they are liable.</p>
<p>They do need to get out of debt. Downsizing now may be very smart. Also working extra jobs to get out of debt.</p>
<p>Delaying retirement will give them more years to build up their financing.</p>
<p>Staying healthy, with healthy attitudes. If have to work beyond normal retirement years, work part-time jobs that are enjoyable, where you want to live.</p>
<p>Some people truly have nothing saved for retirement, and they also have not taken care of their health. That is a bad combination.</p>
<p>Is there a deadline to rollover a 403b or 457 plan into an IRA upon retirement, i.e. one must do the rollover within a certain time upon retirement? Also, does one have to first convert the 403 b or 457 plan to a regular IRA before converting to a Roth IRA? I understand the Roth conversion will necessitate paying ordinary income tax up front on amount of conversion, not sure if I am in the position to do that yet.</p>
<p>When you roll over the current retirement plan, basically you have to liquidate the investments in the current 403b or 457 plan and move the “cash value” into a new company/IRA account, would it be best to roll it into a cash account first, then take the time to pick various investment options over time, instead of plowing the entire amount into some stock or bond funds? What is the most common path people take?</p>
<p>I have read a few web link about IRA rollover/conversion, having a headache, still cannot figure out if there is a deadline, maybe all you experts on CC can help simplify the answers for me, or lead me to a link that you are familiar with and find it helpful.</p>
<p>Some things for IRS you have to do IN CALENDAR YEAR like converting IRA into Roth IRA.</p>
<p>Your company or employer should be able to give you their information on this - whoever administers their plans should be able to inform you (on 403b or 457 plan).</p>
<p>Sometimes you can learn things from other co-workers who have already retired.</p>
<p>Sometimes it becomes easier to have things roll into your chosen IRA and then your have the flexibility to move that into other things.</p>
<p>If you have no retirement savings then you don’t retire, ie you keep working. If you can’t keep working you must live a very frugal lifestyle in retirement. Seems unlikely that a person in that situation (ie, unable to work and lacking savings) would delay social security. If I didn’t have enough income and savings to live even a modest lifestyle in a low cost area in the U.S. I would seriously consider retiring abroad. There is an entire industry (mostly hawked by International Living) devoted to Americans retiring overseas. </p>
<p>Went to see another financial planner whom we met at one of those “free seminars”. One of his suggestions for generating income was the Connecticut Teacher’s Retirement Board Annuity. This is specifically for teachers and administrators in Ct and is guaranteed by the state to immediately pay ~9% (depends on your age) as long as you live. You start to collect on either termination or retirement. What’s left of the original amount goes to your heirs. The only problem seems to be that there is no cola. In CT, the teacher gets hardly anything of a spouse’s SS upon death. What do you think?</p>
<p>Met yesterday with the so-called advisor - turns out he was only an approved vendor for the school district and investment plans, not a real advisor…in other words, a salesman.
Went well until I started asking questions. Mr. Expert on Teacher Retirement was pretty clue-less on the GPO, totally clueless on GPO spousal benefit, and when I told him I was already maxing out my 403b benefit, he asked where I was investing it. I told him Vanguard Wellington. He then asked if my husband was overseeing and advising me. No. My husband respects my financial knowledge and listens to me.<br>
Goodbye Mr. Hairplugs.
Nice meeting you.
Don’t bother coming back.</p>
<p>In our meeting today, my wife expressed concern that she doesn’t know what I’m doing in our accounts. She’s right - I’m really concerned if something happens to me what is going to happen. At some point, I’ll have to really simplify and consolidate our accounts.</p>
<p>Government Pension Offset
If you qualify for a pension (oh how I love that term) from a Governmental Body that isn’t covered by Social Security, then your Social Security will be (quite logically ) reduced. That’s the Governmental Pension Offset. Texas teachers don’t contribute to Social Security and so aren’t eligible to collect Social Security. Some worked in other jobs, so there is a complex set of rules that off-sets state retirement with their Social Security job benefits.</p>
<p>He then asked if my husband was overseeing and advising me. No. My husband respects my financial knowledge and listens to me.
Goodbye Mr. Hairplugs.
Nice meeting you.
Don’t bother coming back.’</p>
<p>What a dumb …
I hope you let him know why you aren’t going to use his services.</p>
<p>The older generation of men is seriously not getting it. It really will hopefully change in the next generation. I have found that I have to be not only assertive but sometimes aggressive to get the point across that I am in control of my money. Unfortunately politeness sometimes does not work and being called a B**** is a good thing.</p>
<p>My wife likes cars a lot more than I do (I usually drive her hand me downs). A couple of years ago, my wife was considering a Porsche Cayenne, so we went to a dealer. She told the salesman that she was interested in buying a car. Even after 3 pointed warnings from me that it was my wife buying the car, the salesman persisted in selling to me rather than my wife. Old school. To top that off, when my wife asked to test drive the Turbo Cayenne, he said “we’re not going to be racing this car, are we, no need to test drive it” in a tone that sounded like the “don’t worry your pretty little head about …” line. Dummy; you thought you were appealing to my wallet, but you just flapped your gums out of a sale.</p>
<p>My wife bought her car (not a Porsche, btw) from a salesman at an affiliated dealer; he knew the idiot at Porsche and we made sure that he told him that sexism lost him the sale. </p>
<p>Ps I know it doesn’t sound very Bogleheadish to consider a Cayenne. :)</p>
SS stopped providing any sort of imputed profit a long time ago. I forget the exact age, but people under 50-ish will on average not even get back what they’ve paid in, let alone any sort of return on 40 years of contributions.</p>
<p>It’s terrible as an investment, you’d do better putting your money in a savings account.</p>
<p>@notrichenough, of course it’s terrible as an investment, because it’s insurance. Homeowners insurance is terrible as an investment also, but it’s pretty handy if your house burns down :)</p>
<p>That said, I don’t think I’d volunteer to pay SS if I didn’t have to. I’d save the money and buy a SPIA when the time comes. </p>