How do I know if I have put together a good retirement plan?

Question

I just have a question regarding whether I am covered in planning for my retirement:

I am 53-years old and have a SavingsLink Plan of $10,000 with an interest rate of 5.5%; a Roth IRA of $100 in a bank at 2%; a Retirement Plan of 4 Mutual Funds: AMANX, AMAGX, SSAIX and SWHFX which covers investments in the Large Growth, Large Value, Bonds, Health Care, Tech, and International funds in the amount of $1,114.00; and a 401(k) which I invest 5% of my paycheck and the company matches it with 3%.

Do I need to make any changes or additions to my retirement plan, or am I covered as far as planning for the future?

Answer 1

No.
1) Having only $11,214 saved by age 53 is not enough.
2) You should be able to get far more than 2% on a Roth IRA (although maybe not with only $100 in it).
3) With total 401K contributions (by you and the company) of 8% of your paycheck, when you turn 65, the total of the contributions will still be less than one year's pay.

Here are some suggestions:
1. Increase your 401K contributions to at least $15,500 per year.
2. Take the Roth IRA somewhere with a better rate of return (over 4%) and contribute at least $4000 per year.

This alone will not be enough, but is a start.

Answer 2

Just remember when you retire that you need to have as much income as you do now to live the same lifestyle. Your expenses will only go up not down because of higher insurance costs, medical costs, inflation etc. If you have a home, it can also be considered an asset since you could always get a reverse mortgage at 62 for extra cash. Buy long term care insurance immediately before the rates get too high. For your age your savings are a little low but I don't know how much you have in your 401K. You would also have to take into consideration if you get a pension or social security (if its still around). You also need to look at what you will need to pay for medical insurance, do you have life insurance, have you done all your trust planning. Most employers will offer seminars with financial planners for free for employees. I would take advantage of that if you can.

Answer 3

you may desire to get related with a brokerage corporation like td ameritrade,charles schwab or comparable form corporation.then make certain whether that's for retirement or not considering the fact which you may open an account that's not an ira in case you want or whether that's for retirement than you may choose an ira in case you choose.yet once you choose an ira you may not take funds out of it untill you're fifty 9 a million/2 years previous.then after that start up off with some great cap mutual funds with low expenditures.

Answer 4

You do not say how much you have in your K101(k), and this makes it impossible to make good calculations.

But if you have been paying a total of 7% into it through out your working life, you may have enough to live very modestly. You really want to get all the facts and ask again.

Answer 5

I don't like your retirement plan at all. (I am a Portfolio Manager)

Is the 5% of your paycheck the maximum your employer will match?