A Retirement Timeline

Further Info

At least one year BEFORE you plan to retire, and even if you are not, and starting at age 60, head yourself down to the OPM and also visit the social security, medicare, state offices. There are many changes and permutations to the government and to social security. It is important to get correct information as to your monthly paycheck with proposed deductions, benefits. Things are changing yearly. For example, the medicare system does not include the VA employee insurance as credible and so will ding you 10% every year one does not switch to it at age 62. It is very important you seek information from all the angencies involved to make sure that each is on the same page and speak the same voice.

M. of TX @ Oct 21, 2009 15:41:39 PM

Exhaust 401(k) to receive SS benefits?

Social Security retirement benefits are not 'means tested', in other words, no matter how much money you have in the bank; you'll get your check every month. The only restriction is age and income. If you are collecting benefits and you make too much in a year your benefits will be cut or eliminated. However, that will also increase your future benefits.

This only applies to SS retirement benefits, I do not know if there are other restrictions on disability benefits.

As to stashing money in a mattress or safety deposit box, with a 401(k) you generally get an employer contribution plus a tax deduction, and a change to keep up with inflation by investing conservatively. If Congress ever does change the rules, you can always cash in and stuff it in the mattress then.

Rick2Rio of MN @ Oct 11, 2009 09:54:23 AM

Age 75 RMD for some 403B Annuities / pre-1986 funds

Government / NonProfit workers with 403B Annuities do not have to take Required minimum distributions of that money until age 75. Be careful, the portion of post 1986 money is subject to RMDat age 70 1/2 , just as all IRA'a are.

John Prochaska of IL @ Sep 15, 2009 14:04:54 PM

401k

At age 47. I'm questioning the need for a 401k. I've heard from folks recently retiring and applying for S.S, benefits, only to be told that their benefits would begin as soon as they have "exhausted" the 401K. Given the recent losses in market conditions, wouldn't those mentioned have been far better off with a mattress or safety deposit box ????????

Dan B of TN @ Jul 26, 2009 10:25:04 AM

Cybrgeezer

Quote: 'This is the year baby boomers born between 1943 and 1954 are eligible to receive full Social Security retirement benefits.'

FYI, the Baby Boom generation began with those born between Jan. 1, 1946, and Dec. 31, 1964. Those born in 1943, '44 and '45 are not Boomers. Those born after 1954 and through 1964 are Boomers.

Bill Anderson of FL @ Jul 13, 2009 13:44:38 PM

Responsibilities?

KB--not saying I disagree about responsibility and the entitlement mentality in this country, but I'm not sure what you mean.

I don't know about you, but I have been in the highest tax bracket for years and, hopefully, will stay in the highest tax bracket until I retire. Not because I like paying taxes, but because I'm earning enough to be in that bracket. I'm fulfilling my responsibilities by paying my taxes. I wish I paid less, but not at the cost of being paid less!

My 401K is something that I and my company contribute to and the company does that because I'm fulfilling my responsibilities to it.

So basically, I don't get the connection between the article and your comment. What am I missing?

DM of CA @ Jun 16, 2009 19:50:55 PM

"Rights and Privileges"?!?

Where do RESPONSIBILITIES fit into this equation...if there were more discussion of that part of the equation, there would be less of an entitlement mentality and we would find ourselves in the mess we are in now.

KB of NY @ Jun 14, 2009 20:52:16 PM