Retirement

1. Questioner: Lee

   Question: I understand or believe I understand once you retire and recevie your pension it is guaranteed and never can be taken from you or even reduced by 1 penney.Is that true? I understand in a perfect world that sounds good and laws may state that but what are the under lying protections to insure my company doesnt make a mistake with their pension fund management and lose a lot of money or go bankrupt? If they go bankrupt or mismanage the money where will the future pension money come from if it's lost in the market? I also understand the fed program doesnt guarantee my dollar for dollar income if the pension does go under. Is there really anything one can say is guaranteed and I dont need to worry about my pension being reduced or taken away from me after I retire?. What about all those steel workers I heard about who lost their pensions, and united airlines other companies????? View Answer

2. Questioner: Kay

   Question: Dear Mr. Reyes. I have a chance to purchase 5 years of retirement service credit with CalPers (government retirement program).My question is, should I buy the 5 years or put the money in a CD. Facts: I am 52 yrs of age and employed. To purchase service credit would cost me $33,327.00. The estimated monthly pension increase by CalPers would be $200.00 a month if I was to retire at age 52. (My goal is to retire at age of 57.) So the increase should go up a little. The problem is at my age it would take me approx. 13 years just to break even before I start seeing a profit on the retirement buy back program for the 5 years. (Plus both parents passed away by age 63) of course that doesn't mean I will. Because of my age would I be better for me to keep the money in a CD earning right now only 4%, where I have access to the money? Thank you View Answer

3. Questioner: Jeff

   Question: My wife is retiring from the state of Florida next month. She will be getting approximately $170,000 from her 457/401 plan. What would be the safest way for her to park her money. We were thinking about spliting into a triditional IRA and laddering CDs. Thanks, Jeff between Money Market and laddering CDs. View Answer

4. Questioner: Beverly

   Question: I worked for a big company for about 9 years and was terminated after receiving and on the job injury.I took my 401 k out to help pay bills. Later, I became ill and now disabled. Does my former employer have any responsibility to pay me retirement? I am 59 years old. View Answer

5. Questioner: Ron

   Question: Hi, I am 55, retired military with a $1660/mo pension...taxable...and a non-taxable VA disability of $2527. Never married, no children and debt free. Do not own a home...prefer renting. Have approx. $20K in a MMSA as my emergency fund. I also have an actively managed mutual fund, which I invest $50 a month. The performance of the fund is mediocre...SAGGX. I can save/invest 1000-2000K per month...but not sure where? I was considering ETF's...but no little about them. Bottom Line: Can I do more with my money between now and 60 and say 65...which I am using as a quasi retirement date. Even though I do not work because of my disability and consider myself already retired. Any Suggestions? Thanks! View Answer

6. Questioner: Thomas

   Question: I am a 41 year old male who works for an employer who only offers the 401K program for individuals who were hired after 2007. Unfortunately, since I was hired in 2007, I don't qualify for the pension program but I do contribute 10% of my salary into my 401K every 2 weeks which is matched up to 6% by my employer.

   My dilemma is I really didn't start saving for retirement until I was 39 so I have a long way to go. Is there an insurance policy that I can pay for on a monthly basis that will guarantee me a monthly pension benefit starting at age 65? With the recent crash of the stock market and losing some of the money I have been putting away I am feeling uneasy about continuing to invest in the 401K long term.

   If you can please let me know I would certainly appreciate it. There just has to be something better out there I can contribute to montly that will give me a montly pension check in return at retirement. View Answer

7. Questioner: Pam Swaim

   Question: I worked at a company for 10 years, at 59 1/2 can I start getting that money although I am out of work right now and they do offer it when you turn 59 1/2. Thank you for your help. View Answer

8. Questioner: Jeff

   Question: Mr. Reyes, If a couple in their 40's or 50's each left their respective spouses and came together (with not much cash - due to both divorces), to basically start over, would it pay for them to scrimp and save for a down-payment on a home that they will likely never pay off - and will soon be on a fixed retirement income, or would it be better for them to simply Rent and not have to come up with a Downpayment or any Homeowner repairs, expenses, insurance, maintenance, etc? View Answer

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