Retirement and savings
I am 58 and hope to work as long as I can. I have a pension through work which will provide approx. 30-40k when I retire, but I am putting 10K a year now in savings (30K so far in savings) and wonder if I should stop that and put it in my Nationwide Retirement (pre-tax 457k) for as long as I can? Thank you
Terry Says
The big question is whether you get a “matching contribution” in your 457 plan. If you do, then contribute more there because that is like getting free money. Then choose a pretty conservative investment option inside the plan, because this bull market can’t last forever!
But it never hurts to have some liquid cash in the bank in a money market deposit account. You won’t get rich there — but you won’t lose a penny!
And one more alternative (if you don’t get a match) is that depending on your income, you may qualify for a Roth IRA. If you’re filing single for 2019 — and your income is below roughly $137,000–you can open a Roth IRA and still make a contribution for 2019 of up to $7,000 if you have the cash. You won’t get a deduction, but it will grow tax-free with no required withdrawals. And after 5 years you can take the money out with no penalty. Do that at Fidelity or Vanguard, and choose a very conservative investment option for your Roth IRA.
