What if Your Job Offers No Retirement Plan

Discussion in Retirement Plans started by tulosai • Jun 26, 2012.

  1. tulosai

    tulosaiActive Member

    Joined:
    Jun 26, 2012
    Threads:
    36
    Messages:
    155
    Likes Received:
    7
    My problem is this: I have a job I love but they offer no retirement plan at all. With the current economy I definitely am glad I have a job at all, but I'm wondering what other people in this situation do about saving for retirement?

    So far I've been putting 10% of what I earn away into a savings account, but I know that with inflation that is nowhere near enough and I should probably start to invest. I'm scared of making a mistake, though.

    Does anyone else have any advice for saving when you have no one but yourself to depend on?
     
  2. Parker

    ParkerWell-Known Member

    Joined:
    Mar 31, 2012
    Threads:
    38
    Messages:
    2,118
    Likes Received:
    59
    I have a Life Annuity. A Life Annuity is much like the pension plans of old. Your local insurance agent is probably your best resource. With a Life Annuity, you will receive funds for your entire lifetime. That means that you will never outlive your funds even if the funds you put into the annuity are exhausted. It is a special retirement insurance policy, but you will receive the benefits after you retire. Not your family after you die.
     
  3. S.O. Price

    S.O. PriceActive Member

    Joined:
    Jun 7, 2012
    Threads:
    45
    Messages:
    226
    Likes Received:
    38
    I think at this point with our economy still be so shaky, I would probably just keep it in a savings account or maybe a CD. I know what you mean about inflation. That, combined with the really low interest rates available makes it really difficult to make any headway for retirement. I don't know how old you are, but if you are on the younger side, I think it would be safer to have money readily available to you, just in case you lose your job in the next few years. I don't think our economy is out of the woods yet and I would hate to see you getting your money locked into something that would really lose value (like the stock market or an IRA). Someday if/when the economy get better you'll have plenty of time to make good investments for retirement. By the way, kudos to you for your saving habits. One way or the other, it will really pay off for you. Keep up the good work!
     
  4. j_pin

    j_pinActive Member

    Joined:
    Mar 28, 2012
    Threads:
    70
    Messages:
    182
    Likes Received:
    1
    I have a personal IRA that I put money in weekly. It was free to set up and really easy to use. Sometimes I wish I weren't self-employed though, it's really nice when you have a job that will match your contribution.
     
  5. Adeal4u

    Adeal4uActive Member

    Joined:
    Apr 17, 2012
    Threads:
    36
    Messages:
    613
    Likes Received:
    4
    I have some money stored up from a 401K when I was working. I will have some money before I retire, but I have a long way to go before I get that money. You can save money yourself, and put it in a savings account and let it accumulate interest. It's better to start now before it's too late, I know how rough it is to save, and there's always a reason you have to use your savings. Maybe an emergency comes up, but if you can take a little off the top of your wages it will start to add up.
     
  6. Victor Leigh

    Victor LeighActive Member

    Joined:
    Apr 17, 2012
    Threads:
    4
    Messages:
    446
    Likes Received:
    14
    I haven't worked for anyone for a very long time so the question of a retirement plan does not arise at all. I simply don't have an employer to give me one. So I have to provide my own retirement plan. At the moment, my plan is to create something on the net which can give me passive income.
     
  7. dissn_it

    dissn_itActive Member

    Joined:
    Mar 29, 2012
    Threads:
    29
    Messages:
    985
    Likes Received:
    8
    I just started working outside the home again and the new employer does not offer any benefits at all. I am just glad to have a job at this point in time! I hadn't thought about saving yet because we are still getting back on our feet again. As soon as we can, we will start saving again so I appreciate all the tips given on this post, too.
     
  8. Mrs. Pirz

    Mrs. PirzExpert

    Joined:
    Mar 30, 2012
    Threads:
    22
    Messages:
    463
    Likes Received:
    3
    You can consult an insurance company that has specific departments for retirement such as Prudential or Wells Fargo. They offer different styles of savings plans for retirements and can offer one that fits your needs and your budget. You can also get it ensured to prevent any loss should the company ever go belly up
     
  9. novasparker

    novasparkerActive Member

    Joined:
    Jun 28, 2012
    Threads:
    20
    Messages:
    185
    Likes Received:
    0
    The IRA is the best way to go. You'll earn much more on your money in interest than with a traditional savings account. Plus, you can defer the taxes you pay on the money until you withdraw. Life annuities are also a good bet as they will help you ern more cash on your investment, and many have a cash balance feature that allow you to borrow from your policy before you pass, which makes them a bit more flexible than an IRA. Either way, your money will be working harder than if you just sock it away in savings.
     
  10. dconklin

    dconklinActive Member

    Joined:
    Mar 30, 2012
    Threads:
    38
    Messages:
    406
    Likes Received:
    2
    As others have said, you can talk with insurance companies to see what they have to offer. There are other options such as a site called Sharebuilder that allows you to take so much money out of your bank account each week and invest it in ways that you are comfortable with. They have options that would be like a 401k plan, only your employer won't be contributing. It is an easy to use site and asks you questions then suggests the right plan they believe will suit your needs.
     
  11. classicnyer

    classicnyerActive Member

    Joined:
    Apr 13, 2012
    Threads:
    19
    Messages:
    918
    Likes Received:
    2
    I'm a freelancer myself, so there is no employer to offer me a retirement plan. I've been speaking with my bank about the subject recently, and they suggest putting money independently into an IRA. Then, of course, you can also do other things like get a broker and invest in mutual funds (probably a better idea if you're young rather than older).
     
  12. Linky

    LinkyExpert

    Joined:
    Apr 10, 2012
    Threads:
    2
    Messages:
    546
    Likes Received:
    1
    I would just say that be careful of who you take financial advice from, it can prove painful but it is good that you are looking into this. Be careful of financial brokers...they are called brokers for a reason. I think shop around for something that will beat inflation and has little to no risk. Compound interest will become your best friend here. A little goes a long way. Possibly check out free sites like the New York based multimillion valued site at learnvest.com....and/or richdadworld.com.

    Become financially literate and save yourself from the pain I went through of being an idiot and trusting the wrong people with my money when starting out. You sound smarter, so I am sure you will be fine.
     
  13. tulosai

    tulosaiActive Member

    Joined:
    Jun 26, 2012
    Threads:
    36
    Messages:
    155
    Likes Received:
    7
    Thank you all for the very solid advice. I will consider both IRAs and Sharebuilder. I also will be sure to keep some money available in case I lose my job as I am indeed on the younger side. Thanks again!
     
  14. Cornholio

    CornholioActive Member

    Joined:
    Aug 4, 2012
    Threads:
    3
    Messages:
    202
    Likes Received:
    0
    You can still save in a CD or saving account but those aren't really the best options for long term planning. An IRA would really be a great idea because you can contribute and invest that money to make it grow, but it isn't like a 401(k) in the sense that you can take the money if you need to.
     
  15. MakingCents

    MakingCentsActive Member

    Joined:
    Apr 10, 2012
    Threads:
    3
    Messages:
    344
    Likes Received:
    1
    There are several types of personal retirement accounts you can set up. There are IRA's both traditional and roth as well as personal 401k's and self employed pension plans if you are self employed. It's important to get your money into a retirement driven account though, much better than just CDs or bonds.
     
  16. Jatelo2

    Jatelo2Active Member

    Joined:
    Jul 30, 2012
    Threads:
    45
    Messages:
    245
    Likes Received:
    3
    Situations like yours are common and as you said do not need careless planning. I also can't say I'm an expert on giving financial advice but what I'm sure about is that; if you were to save a percentage of your current income and use it to start a part-time business you will be probably safe.
     
  17. novasparker

    novasparkerActive Member

    Joined:
    Jun 28, 2012
    Threads:
    20
    Messages:
    185
    Likes Received:
    0
    Save anyway and open an IRA...there are several different types of IRAs you can open....you have to take charge of saving for your future, regardless of whether or not your employer offers a 401(k). Make a conscious effort to make your golden years worry free and start savings as much as you can today. You won't regret it.
     
  18. jovan107

    jovan107Active Member

    Joined:
    Aug 2, 2012
    Threads:
    2
    Messages:
    320
    Likes Received:
    1
    There are several retirement plans available that you could save money in if your workplace does not offer a retirement plan. You could open and IRA or a 401K plan. Research which plan works best for you and start saving.
     
  19. iampeebs

    iampeebsMember

    Joined:
    Aug 29, 2012
    Threads:
    4
    Messages:
    61
    Likes Received:
    0
    I have not retirement benefits, so I have created my own. Ay financial planner can help you out. If you do not know one you trust, your bank can be an excellent resource especially if they are a local business.
     
Loading...
Similar Threads - Offers Retirement PlanForumDate
The Best Time To Start Saving For Retirement.Retirement PlansNov 6, 2017
Never Saved For Retirement, Now What?Retirement PlansSep 6, 2017
What Is The Right Age To Start Saving Up For Retirement?Retirement PlansAug 10, 2017
Not Allowed To Link Retirement Accounts.Retirement PlansJan 26, 2017
At What Age Do You Plan To Retire?Retirement PlansAug 3, 2016