Tag Archives: 401(k)

Can you retire now?

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If you’re under full retirement age, you might want to think twice before calling it a career. Here are a few reasons why.

Question: I’m 63 and my employer has eliminated my health insurance and dramatically cut my pay. If I retire now, I’ll get about $1,300 a month in Social Security, plus I can collect another $2,000 a month by investing my $310,000 in savings in an immediate annuity with lifetime payments. All in all, I should have about the same income I have now. So I figure why work without health insurance when I can retire and not have health insurance? Do you think my plan makes sense? –Bill P., Martins Ferry, Ohio

Answer: Sorry, but I think you need to reconsider your plan, as I believe it has a few potentially dangerous flaws in it.

To begin with, you’re apparently assuming that you will forego health insurance until you reach age 65 and qualify for Medicare. That’s not a good idea. Continue reading →

401(k) report card

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Question: Is there a listing that would allow me to see how my 401(k) plan compares with other companies’ 401(k)s? –Debbie W., Mount Laurel, New Jersey

Answer: Considering that upwards of $3 trillion is invested in 401(k) accounts for some 50 million American workers (plus millions of retirees), you might figure that there would be all sorts of resources allowing participants to see how their plan stacks up against others.

But you would be wrong.

Although there’s a ton of data available about 401(k) plans in aggregate, there’s not a whole lot out there that allows you to directly compare or rate specific plans. Continue reading →