I contribute to my ira annually ($200) and I may or may not have some money in a 401k somehwere. If I do, it's not much. What's the chance Social Security will be revitialized and I'll be able to get by with what I'm doing?
2007-11-27 16:30:24 · 8 answers · asked by oblieo 1 in Business & Finance ➔ Personal Finance
You need to do way more than 200 annually in your IRA
1) Get a job with a good 401k plan...contribute the max to that plan (this is great, because you get the matching dollars from your company which is essentially free money)...make sure those funds are being managed well.
2) Open a ROTH IRA account. A ROTH IRA is pre taxed from your current income, so you won't be taxed on it later when you take it out after retirement. You can contribute a MAX of $4,000 to that account each year...make sure that money gets funneled into Mutual Funds which kick their returns back into the ROTH IRA.
You need to step it up if you want to retire comfortably, and don't count on that Soc. Sec. money.
2007-11-28 11:57:24 · answer #1 · answered by Answerguy 2 · 0⤊ 0⤋
Social security alone will put you right at the poverty line; but you will probably qualify for food stamps.
$200 a year is a good start, but beef up that 401k now. Every dollar you put in now is like putting in $20 when you are in your 50s. At a minimum, make sure you are getting the full match from your employer; it is free money for you. If they match 50% up to 6% of your salary, put in the 6%. With it being taken out pre-tax, it should only be like putting in 4.5% of your salary to get 9% put into your 401k for an instant 100% gain on your investment.
If you can't afford to hit the full match, make sure you get closer with your next pay increase. Take about 30-50% of your next increase and apply it to the 401k to get the employer match.
Good luck!
2007-11-27 16:45:09 · answer #2 · answered by JJ 5 · 0⤊ 0⤋
Well, all I can say is save more money and invest in another stuff. You have internet and a brain. Use it!
Besides I suppose you have way more than $200 bucks to save annually. It's $16,66 monthly, a 10 years old kid in Zambia can save more than that(no offence).
I live in a poor country(Brazil) and even here $200 bucks a year is a joke.
2007-11-27 16:53:52 · answer #3 · answered by Dude 3 · 0⤊ 0⤋
I wouldn't count on Social Security. Try increasing you're 401k or IRA as your pay/salary increases. You should be putting in at least 10% of your pay, 20% is even better.
2007-11-27 16:40:56 · answer #4 · answered by AG™ 1 · 1⤊ 0⤋
Enjoy your cat food diet.
$200 a year will equal squat at retirement.
Health care alone will eat you alive.
And by the time we get even close to retirement age they will bump the age way up. They have to, to continue paying for baby boomers and disability suckers.
2007-11-27 16:35:39 · answer #5 · answered by Gem 7 · 1⤊ 0⤋
You're chances of ending up in penury are high. Social Security is unlikely to survive in its present time.
On the plus side, you have many working years ahead of you to save.
2007-11-27 16:50:08 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I would try to put more away for retirement. Even if SS survives, I doubt it will be sufficient. You can go out to www.americafirst.com and use their calculators to help you figure out what you will have.
2007-11-27 16:35:38 · answer #7 · answered by moonman 6 · 1⤊ 0⤋
200 a year..........not even close................max the payments........
2007-11-27 17:36:29 · answer #8 · answered by richard t 7 · 1⤊ 0⤋