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Retirement Savings

March 15th, 2013 at 12:56 pm

An up stock market is more fun than a collapsing one and I've been keeping an eye on our Retirement Accounts lately. 401ks, profit sharing accounts and IRAs are at $243,000 - so we've almost hit the quarter million mark. I know it is only a number but it is a milestone so I'll be happy to see it go over that. Hopefully once it goes over that number it will stay there, but I have a feeling this zooming stock market is going to correct itself fairly soon.

In addition to that, my husband has two defined benefit pension plans which will help to support us in retirement. They both allow for a spousal payment (joint annuity) but one of them pays nothing if DH dies or retires before age 62. Our family joke is always that is the company's method of making sure the spouses don't kill off the executives before their time.

I don't count our primary Investment account which mostly holds DH's company stock bonuses in that retirement amount because it isn't a retirement account. We've been talking recently about cashing some of this out and diversifying into real estate, but selling is kind of tricky due to Insider Trading restrictions.

9 Responses to “Retirement Savings”

  1. creditcardfree Says:

    It definitely is better to watch it go up then down, but I remind myself that a down market is just a sale and it means I can buy more shares for the same amount of money!

  2. Petunia 100 Says:

    That's a very respectable milestone, and you're within spitting distance! Congrats. Smile

  3. snafu Says:

    Good on you for the substantial sum. It's important to review net worth via asset allocation to make sure that you're reasonably diversified. If most of your equity holdings are in DH's employer's stock, I suggest you chose two or three other investments like a Vanguard Index Fund, REIT and ETF MOO

  4. snafu Says:

    sorry, the last sentence flew to cyberspace. 'Edit' feature refuses to work on my Mac Air

    ...

  5. snafu Says:

    ..

  6. snafu Says:

    trying to say...or whatever meets your criteria. Enron taught the danger for executives holding significant company's stock

  7. JulieA Says:

    LOL Enron is the exact example I use when I talk to my husband about this issue. We have always avoided buying company stock within his 401k plan. What we hold are restricted stock bonuses. If I remember correctly they grant him a number of shares every February and he is legally required to hold them for two years. After two years he can sell, but only during certain windows related to the company release of financials and he has to notify the Chief Finance officer before the sale and get permission.

    So, it is a lot of hoops. I would like to cash out a big chunk right now and invest in a rental house and then start letting them accumulate again.

    You are right, especially when you consider our pension incomes are already tied to that one company, it is a lack of diversification to hold so much of the stock too and it brings risk.

  8. rob62521 Says:

    Yay on your increase! It is a good feeling and seeing it grow is great too!

  9. Jerry Says:

    Well done! That annuity sounds like something worth looking into, and I hope it leads to everything you need during retirement. That is a pretty nice milestone to hit!
    Jerry

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