401(k) Plans: No Time Like the Present

I have contributed to my 401(k) plan since I first joined my current employer 17 years ago. At first, it was just to get the matching funds, then I raised the percentage each year since I learned from a financial planner when I was still in my 20's about the power of compounded interest and dividends. I now have a healthy balance, but have recently had to cut my contribution back to the matching level due to financial constraints. My husband is unable to work due to a serious work-related accident, and the extra income is sorely missed. If we ever get past this rough patch, I'll raise my contribution level again. I've done projections, and just 1% difference can mean an extra $40K in my account. Since I'm 53, I still have some years to contribute, provided I'm able to remain with my employer. I also leared NEVER borrow from your account because you lose so much more than the amount you borrowed!

I work for a government office and I pay $70.00 a week which is matched by the County I work for. This is my 24th year with this office, and have been paying into this fund since 1984. Even with this, I am worried that I will not be able to retire due to health insurance costs. I am eligible to retire in 14 months, but I will need to spend $460.00 per month on health insurance. This bill is 1/3 of my retirement. It does not seem fair that I have been a dedicated employee for so many years and find I cannot afford to retire. I know I'm in better shape than many people, but I've done my part, and feel I should be able to enjoy my later years without having to scrimp and save for a few pleasures.

Not contributing because I have already gathered "enough" BUT it is "enough" only if the theft schemes implemented during the past twenty years don't steal it all.
Any of my financial accounts can be vacated at whim by any criminal anywhere in the world without authorization via Electronic Funds Transfer, Point of Sale Terminals, the Automated Clearing House, and the new "Check21" forgery facilitating system.
Once vacated, it is *at best* a difficult process to recover the stolen money and, in some states such as Massachusetts, impossible according to a resident there who explained the situation.
It is not only my financial accounts that can be vacated at whim but the stockholders equity in publicly owned companies is being stolen via "stock buybacks" which transfer the equity for negligible in the way of reduction of shares outstanding to cronies of the wrongdoing managements (or to themselves).
So having gathered "enough", I am left with the certainty only that it can all be stolen at whim by any criminal anywhere and that, in the case of stocks, that it is in fact being stolen even as I write.
Most of those "contributing" to 401(k) and other retirement plans don't realize how void are the promises being made about those "assets" being worth anything when needed.
The thefts need to be STOPPED! and the theft systems discontinued. Any political candidate who fails to address these theft issues doesn't belong in public office, in my opinion.

I am not contributing to my company's 401k because I just can't afford it. I don't have a lot of debt but I do own a house. No car, one credit card but my monthly payments for mortage, utilities and miscellaneous expenses doesn't leave much for a 401k. Four years ago, I got downsized from a job I held for 14 years at the age of 49. I had to cash out my 401k in order to live because I couldn't find a job for 15 months. I'm paying taxes and penalties on that money now. Apparently the government would have preferred that I go homeless rather than spend my retirement money to keep a roof over my head. Now, at 53, I'm not making anywhere near my previous salary and I don't dare contribute to my current employer's 401k in case this job doesn't pan out. I guess I'll be working until I drop at this point.

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I am co-owner of a small business. We had a 401K plan for several years but discontinued it. At that time I took the money and invested in an individual IRA which I contribute to monthly. I am 52 years old, in good health, a registered nurse and single with no children. I have no plans to retire in the foreseeable future unless we (the owners) are able to sell the company for a tidy profit. (It is a nurse/CNA staffing agency.) I am one of the lucky ones because as a nurse I can always find a job. If I get too broken down to work in the acute-care setting as I do now I can always teach or do something.

I put money into a 403b account and managed it. I have done very well with the mutual funds in which I invested. My wife is doing the same and is doing well also. I retired 1-2004 and have not put money in since then. My wife Vickie is 7 years younger than I. I wanted her to retire in 2 years at age 59 1/2, but she would be without health insurance until 65. So, it looks like she is going to have to work until then and we will not get to do as much together as we had hoped.

I feel compassion for those with little or no health insurance and little or no pension or savings. Health problems are now the number 1 cause of bankrupcy in the U.S. We need national health care. Don't let politicians and the health insurance corporations scare you with the word "socialism". That's bunk!

I lost my life savings when I got sick at age 53. When returning to work at age 57, I was able to find a job but spending every $ on living expenses and healthcare. How can I save enough to help me during retirement for more than a few years? It's an impossible situation. I anticipate that I may not be able to afford healthcare when I retire and I reflect upon the possibility of considering ending my life prematurely rather than live in poverty, begging for medical care, without dignity.

I have been contributing to a 401k for about 25 years for different companies and to Ira's and annuities on my own also. I read Charles Givens book "Wealth Without Risk back in the early 80's and took his advice to PAY YOURSELF FIRST....then the bills. I have enought to retire right now at 60 but the HEALTH INSURANCE is the kicker. I would not qualify for a private policy with pre-existing conditions or could be cancelled for them if I did get a private policy...we need health insurance that everyone has(not just members of congress and government) that you could never lose and that is affordable until medicare and supplemental kick in at 65. This is a real issue for all Americans...not just those with retirement money saved.

When I started my career my company, like many at the time, had non-contributory pension program. As the years went by the company added a contributory pension program program then a 401K IRA program. Being skeptical of the new 401K I initially contributed the minimum in order to get the generous company matching portion. Later I increased my contribution to the 10% level. When I was laid off and retired in 2000 I rolled over my 401K and then took a big loss when the market declined.
I am now 65 and contribute to my current employer's 401K. I am a strong believer in the benefits of the 401K program not only as a means of saving for retirement but also the financial growth opportunities achieved through the employer match component.

I been retired since Sept 01 , i live on S. S. and Pansion . What do i need more !

I do. Fully. Always have, as long as I've been eligible to (since 1982), and always at the max. And, based on my best-man CPA's advise, after tax to the max as well. What's confusing about free money? Are people "too busy" to capture free money too busy to capture other assistance too? The 401k rate of return is incomparably better than that for Social Security (-100%).

My retirement account kept getting smaller and smaller as the stock market fell, so I cashed it in and used the money to pay off all my credit cards and figure I came out ahead. When you are retired you need to have your home and auto paid for and no credit card debt in order to make ends meet.

Clarkrange, TN

An often overlooked 401K benefit is the ability to have the contributions made on a pre-tax basis. This will result in less taxes taken out of each paycheck. The employer match contribution could be viewed as taking the place of the non-contributory pension plans companies had in the past.

Your e-mail announcement was superbly timed. I just received an invitation from the Robert Wood Johnson Foundation inviting research proposals regarding health care and/or public policy.

I was recently hospitalized myself and, lacking any health care, I am facing a bleak future. I considered bankruptcy but, my husband and I filed bankruptcy in 2001 because of a severe and significant hospitalization expense. I cannot file bankruptcy again because enough time has not elapsed. And in Arkansas (my resident state) the health care providers can (and probably will) turn over the delinquent bills to a collection agency because, the Department of Health and Human Services denied any financial help to me. Anyway, the collection agency will try to collect these bills; but being unable to pay them, the collection agency has the authority to put a lien on our property. Fortunately for me, this lien has a limitation of ten years.

I will try to get a proposal written after reading your comments on this website. Another problem with my husband's and my situation is that he is on Medicare and, many doctors in Magnolia, Arkansas are refusing to take new Medicare patients; hence, my husband has to drive to Camden, Arkansas to see a physician. And you can imagine what the gasoline costs are!

Respectfully,
Sharon Rabon

I do have a traditional IRA, not a 401K, and I contribute $50.00 at the end of the year to it. That is all I can afford to, because I had to cash most of it out when I got cancer costs. Now, I am one of the Baby Boomers playing catch-up at 57 years old! It is only one-half of what it used to be!

I hope to find a job that offers a 401K and I will start contributing to that.

Judy Allen

I have been depositing a low 3 figure monthly into a mutual fund 401(k) (not employer) since 1986. Because I have had to use it several times over the years, it fluctuates up and down but I have never stopped putting money into it. I wish I never had to use it or pay the taxes, but it has been a God send for me. I am healthy, work more than 40 hours each week and will keep working until I have to claim my ss (in about 8 1/2 years). Knowing me and the stock I come from I will continue to work even after the 8 1/2 years only just not as many hours. I have 6 grandchildren, nieces, nephews & great nieces and nephews as well as 5 generations alive for myself, children, their children and their children's. Both sides of my family live well into the 100 years. I may not have emassed a fortune, but I have a fairly nice nest egg. I feel very much for those poor persons who are not as fortunate and will fight tooth and nail for their right to decent money in their later years!

I started receiving Social Security in February and still work full time. Due to rough times in my life and being a single mom and not receiving any money I will be working forever. I have a little money put away to last maybe 3 years. I do not own anything have some debt but it was for healthcare out of pocket expenses.

It is impossible to get ahead. I got a good review on my job but only got a 2.5% raise due to the fact that they are cutting back (on lower level employees) the fat cats are riding around in limos and private jets.

With the raise in gasoline, increases in health insurance (double digits) other cost of living expenses it is very hard to add to your 401K. I put in 160.00 a month. And now companies have been closing out pensions (because it is their money).

Senior Citizens have it tough in the work place because they are always evaluating you on whether you can produce enough. It's very stressful every day. If you don't produce or feel good one day it's like your in line for dismissal. All offsite trips for enjoyment of employees is geared for younger people. Senior Citizen harrassment in the workplace is in the top 5 reasons seniors are so sick. The insecurity of not knowing how long they will let them work. Seniors have alot to offer.

We need to penalize companies that harrass not only seniors but anyone. They fire and layoff on the number system. Who is here so many years (cost to the company) near retirement, amount in pension etc. Who knows when are day comes.

We live and get sick buying in to manipulators.

I am almost 61, my husband is 66. We can no longer contribute to our IRA's because there is nothing left to contribute after we pay all the bills. That includes prescription drug costs that are very high for my husbands problems. Since he has fallen into the dreaded "donut hole" as of May 16, 2007, we are now paying 100% of his Rx's - most of which have INCREASED in cost $20, $30, or $40 more over last year at this time!! How can anyone keep up?? Last year the "donut hole" did not come into play until October but these increases accelerated the process. My husband can only work part time now since his health problems and I am self employed as a seamstress and work is sometimes very slow. We live very frugally. So how can we save more in our IRA? Cost of everything keeps going up, especially health care and gasoline (which affects the cost of everything you buy that is transported) and we are not getting any increase in income. I fear we will have to sell the house one day just to be able to eat! I whole heartedly agree with the person who commented here that we need National Health care and the scare of "socialized medicine" is bunk!! Hey, if other countries can make it work, why can't we? Because our country lets the health insurance companies and the drug companies get away with murder - literally! They have too much power and decide who lives and who dies by denying approval for medical care,in the case of health insurance companies, and charging inflated prices, in the case of drug companies. Something must be done to change the system in this country. I know there are a lot of people in this country who don't even have any insurance coverage and are worse off than my husband and I and that is a disgrace knowing that there are billions of dollars wasted in Iraq when our own people have no health insurance. There is something definitely wrong with the priorities of our government!

I work for an entity of a large medical network in Eastern PA. Until we joined the network, we had our own defined contribution pension plan and the company contributed a percentage on our behalf. Because we became more closely aligned with the parent organizaion, we were made to close this 403 (B) plan and join the defined benefit plan of the hospital network, in opposition to the direction of most of the corporations of the country. While the hospital system appears to be on good financial footing at this time, in the medical field these days, it is not certain that this will continue, and I wonder if the plan will be sending me a check when I do retire in 10 years or more. I would have much rather continued to make contributions into my OWN plan, matched by the company and been able to see my retirement account accumulate each month and know what I could rely on.

My husband has been contributing to his 401k plan through three different employers since 1994. He is now 62. We have accumujlated more than $300,000. He is still working and will continue until almost 66.

If younger workers started earlier, they would be in a better prosition later in life. We still feel we will be fine since we have other investments, i.e., property. Your employer's 401k is not just saving your money from taxes but also is accumulated free money from your employer. Never invest too much in employer stock however.

is it to late for me to start a 401-k plan at the age 52years old?
i have been at my job for ten years, and at that time i was not thinking about starting a 401-k.