On 18/11/19 2:27 am, Ralph Mowery wrote:
In article ,
says...
We don't have a 401k here so I am not sure what that is. A quick check
of Dr Google tells me it is much like the super schemes we now have here
with either a lump sum payout or a retirement income stream.




In simple terms. The company you work for lets you start up a
retirement savings. They will often match what you put in , or a
percentage of it up to 3 to 5 % of your pay. Depending on the company
you may have several choices of where that money is sent. Such as
mutual funds, or a money market . A few companies made you put that
money in their stock. A very bad idea for some companies.

Yes, pretty much what I had except I was in a state government super
scheme. $ for $ matching up to the limit I was able to put in, 9% IIRC.
Difference was, I had *no control* over how and where it was invested.
That said, the investment management was extremely good.

YOu can not take that money out before you reach 59 1/2 years old
without some very heavy tax on that money. There are some exceptions.

For us it was 55 though for some it was beneficial to retire at 54/11.
That is age 54 and 11 months. I didn't get the option as I was fully
retired at 50 and off work on sick leave for some 2 years prior.

Usually after you retire you convert it directly to an IRA.

We had the option of converting it to part lump sum, part pension.
Everyone's circumstances are different so the ratio varied. Mine, for
instance, was 100% pension and I had no choice in that due my reason for
retirement - disability. It worked out well for me except now I have
difficulty getting any govt benefits at all.

--

Xeno


Nothing astonishes Noddy so much as common sense and plain dealing.
(with apologies to Ralph Waldo Emerson)