Pension Fund in Critical Status -- OH NO!!! - Page 5

ccassaday · ‎10-21-2010

@151949 wrote:
This happened about 30 years ago(pre IRA) so take that into consideration - my DH's company was sold and along with it , the pension fund. The new company did not currently have a pension plan nor did they want to get involved with one so they returned to each employee exactly what he had deposited in his fund. None of the money that the company had put in - no interest or earning it had accrued etc. They kept all that, all the employees got was reimbursed their contribution. So , at 43 years old my DH had to start all over from scratch to save for his retirement.

Even with a pension you need to get some mutual funds and open something like a 401k if your employer doesn’t offer it.

ccassaday · ‎10-21-2010

@bmorechick wrote:
husband just retired - took his money in one lump sum as he doesn't trust the monthly check to continue as promised. will make 5x the money investing it. my dad did the same thing. we remembered sparrows point/bethelem steel as those workers lost everything when they went belly up.

My dad just did the same thing.

ccassaday · ‎10-21-2010

Bottom line never rely solely on a pension for retirement. If you are offered a 401k also contribute to that. If not find a financial advisor that will set you up with a IRA OR ROTH.

Kalli · ‎03-11-2010

I took my lump sum at retirement, too. I believe that at some point in time, this option will no longer be available to retirees in my line of work.

I still receive a monthly pension amount that is reduced. Plus I started taking SS at 62. I think SS payments will likely be reduced eventually in order to keep it going. There are 80 million Baby Boomers and our retirement wave is a financial tsunami to pensions and to SS. And to Medicare, too. We’re living longer and dying slower.

Currently, since Cobra is over for me, I’m paying well over $1000 a month for my single coverage health care plan. I should’ve delayed my retirement a little longer but my elderly parents needed my help.

chrystaltree · ‎05-10-2010

@ccassaday wrote:
@bmorechick wrote:
husband just retired - took his money in one lump sum as he doesn't trust the monthly check to continue as promised. will make 5x the money investing it. my dad did the same thing. we remembered sparrows point/bethelem steel as those workers lost everything when they went belly up.
My dad just did the same thing.

I think most retirees do it that way now because the world is not what it once was. Trust no one.

Miss Shelly · ‎03-28-2011

@bmorechick wrote:
husband just retired - took his money in one lump sum as he doesn't trust the monthly check to continue as promised. will make 5x the money investing it. my dad did the same thing. we remembered sparrows point/bethelem steel as those workers lost everything when they went belly up.

My brother-in-law worked for Bethelem Steel in Johnstown PA starting at age 18. When that plant was shut down he moved to Baltimore and worked at Sparrows Point until it closed. When they did the calculations for the pay outs he was 6 months shy of the start date they used in the calculations and he lost nearly everything he worked for his entire life. They had to sell the house and moved to a trailer in PA. He is now 63 working loading trucks for a local business and his wife at 62 is working at a Subway. They also lost their health insurance and are looking forward to Medicare. Such a shame this is happening.

Carmie · ‎10-25-2010

@ccassaday wrote:
@151949 wrote:
This happened about 30 years ago(pre IRA) so take that into consideration - my DH's company was sold and along with it , the pension fund. The new company did not currently have a pension plan nor did they want to get involved with one so they returned to each employee exactly what he had deposited in his fund. None of the money that the company had put in - no interest or earning it had accrued etc. They kept all that, all the employees got was reimbursed their contribution. So , at 43 years old my DH had to start all over from scratch to save for his retirement.
Even with a pension you need to get some mutual funds and open something like a 401k if your employer doesn’t offer it.

You can lose big time money placed in 401k's too. I lost six figures TWICE in my 401k throughout my working career.

They are not always as safe as they may seem. Anytime you invest where there is potential to make money on your investments, there is a risk.

You will make next to nothing in no risk accounts.

ccassaday · ‎10-21-2010

@Carmie wrote:
@ccassaday wrote:
@151949 wrote:
This happened about 30 years ago(pre IRA) so take that into consideration - my DH's company was sold and along with it , the pension fund. The new company did not currently have a pension plan nor did they want to get involved with one so they returned to each employee exactly what he had deposited in his fund. None of the money that the company had put in - no interest or earning it had accrued etc. They kept all that, all the employees got was reimbursed their contribution. So , at 43 years old my DH had to start all over from scratch to save for his retirement.
Even with a pension you need to get some mutual funds and open something like a 401k if your employer doesn’t offer it.
You can lose big time money placed in 401k's too. I lost six figures TWICE in my 401k throughout my working career.

They are not always as safe as they may seem. Anytime you invest where there is potential to make money on your investments, there is a risk.

You will make next to nothing in no risk accounts.

Of course you can. Especislly if you arent diversified. But over the long run you will have so much money. If you have 600k and lose 50k you will make that up. Plus if you are diversified the amount you lose from one stock will probably minimal by the. gain of another. As you get close to retirement its probably smart to rearrange your portfolio. Diversify diversify diversify.

ccassaday · ‎10-21-2010

Oh and i wasnt talking not losing any money. Stocks go up and down. But you wont lose a entire portfolio if you are divrrsified and ride it over the long run.

Kalli · ‎03-11-2010

@ccassaday wrote:
Oh and i wasnt talking not losing any money. Stocks go up and down. But you wont lose a entire portfolio if you are divrrsified and ride it over the long run.

@ccassaday We are probably the exception in this regard. Almost everything we have is in one basic investment sector. Within that category we do have some diversification. By conventional wisdom we shouldn’t have succeeded I suppose. But we stuck with what we know.