Ask Terry Questions No pension, Roth/Trad. IRA

No pension, Roth/Trad. IRA

By Terry Savage on February 27, 2023 | Financial Planning / Retirement

Hello Terry,
Thank you most sincerely for your thoughts and advice in this matter.
I was a union carpenter for 15 years. I somehow never accrued enough credits to obtain a pension (long, unfortunate and pretty sad story.)
So I’ve been on my own with my own business tuning and repairing pianos. Very content even happy with the vocation change/choice and wish I’d started earlier.
My question: I am 55 years of age, married and upon retirement will be receiving (hopefully) some minimal social security.
I have been trying so hard to play “catch up”. I have a Roth IRA through Td Ameritrade and a Traditional IRA through Robinhood (they actually match a small percentage of my contributions.) My wife will be receiving some relatively solid retirement funds, and I wholeheartedly wish to at least come close to what she will be given. As a husband, friend and a man, I I’m really striving to make this come to fruition.
Currently (including savings, checking and both IRA’s) I only have about $25,000.
I guess it’s not technically a question, but any words of wisdom/thoughts/advice would be so very greatly appreciated.
Peace, wellness and joy to you and yours!
Thank you Terry!
Sincerely,
Daniel Vega
Piano Tuner Technician

Terry Says

Well, let me start out by saying how nice it is to hear that someone has found their vocation/gift and is enjoying their work. You should find out what you will get from Social Security by opening an “account” at Social Security to see what’s in store for you. Here is a link to that page. And you should plan to wait until at least your Full Retirement Age to start collecting. There are stiff penalties for collecting before that time.

You don’t say how you’re invested inside your IRAs. This is really not the time to be trading or speculating. The best thing you can do for yourself is contribute as much as possible, and invest in a conservative mutual fund. If I were advising, I’d suggest you contact T.Rowe Price at 800-638-5660 and open a low cost IRA and invest in their Equity-Income Fund. (It’s my own favorite conservative fund for 40 years so I’m biased, I suppose!)

And then just keep working as long as you are able. Why retire?? Especially if you love what you’re doing. That’s my approach, too! Hope this works as an answer!
PS. In re-reading my answer before I post, I suggest you contact the union office. Hard to believe that you don’t have a little something coming to you!

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