Are you able to put away money for your retirement?

Nurses General Nursing

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In these tough economic times, are you, with your nurse salary, able to put away money for retirement? (401k/403B, IRAs, etc.)

I'm in my mid twenties and I put 10% away--have been since I started working at 16...it's smarter to put the money away before it gets to you anyhow because then it's not taxed, AND it seems like you are "loosing" much less than you actually are. It's never too early to start saving--I fully anticipate leaving the work force before I'm 70, and nobody is going to pay me to do it but myself =)

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Specializes in ED, OR, SAF, Corrections.

I do. I have 15% of my salary taken out pre-tax and invested in the Thrift Savings Plan (which offers a variety of investment strategies) - and the government matches the first 5%. I also have $100 deducted each pay period that goes toward US savings bonds, which kicks back a $1000 bond to me after every 5th pay period. I also try to put $10-$25 in my savings account (that is only touched for emergencies and only put there because it can be withdrawn in a hurry with no penalty or loss of interest, unlike savings bonds).

I don't even make that great of a wage AND I live in Europe where I have to live on the Euro but get paid in US dollars. But I do as a previous poster said - I PAY MYSELF FIRST. I also am frugal. By that I don't mean cheap or skimpy, but I don't feel the need for a brand new car, a plasma big screen TV, wear designer clothes, bags, or shoes, or to eat out all the time.

You CAN save money no matter what your income level, but you can't do it AND be a big spender. You have to learn how to live within your means and to do that you need to learn the difference between NEEDS and WANTS.

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Could I? Sure. But, being accustomed to the finer things in life (like food, and electricity, and health insurance, and a vehicle... okay, and the occasional trip to Europe), my retirement fund is nil. Heck, I'm barely twenty-four - I fill my responsibility quota just by not living with my parents!

Just call me the grasshopper in this fable ;)

You are in a great situation because if you start right now you really don't have to put away that much away. The younger you are when you start the less you have to save. The law that created the 401k was passed shortly after I turned 30. So my hubby and I had to save a lot more because we got started later. Of course he was in a union and has a traditional pension which is very nice because it is unaffected by economics. I won't be around when you turn 65 so I have no stake in what you do but my advice is start NOW.
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Specializes in Legal, Ortho, Rehab.

To the OP:

You should tune into the Dave Ramsey show on Fox Business Network. I have learned so much about saving; my husband and I have a health savings account, invest in mutural funds, own corporate notes, etc. I am only 24!

It also helps my husband is a finance major!

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You'll get no arguments from me, oramar.

... and for those of you who think that everyone's retirment funds got wiped out by the recent/current recession, it's not true. Yes, I lost a considerable amount of money when my investments went down. But I didn't panic and kept contributing to my retirement account. As the markets recovered, I made a huge profit on those new contributions -- and my overall total in that account is now higher than it was 2 years ago when things started to go bad. :)

Yeah, we took two BIG hits in the last 10 years also. I am suprised there wasn't not a revolution everyone was hit so bad. I know I was ready to start one. We are not where we wanted to be but like you we have gained a lot back. Especially recently because we were heavily in the S&P. We are slowly moving into bonds, you know the old saying. The % of your 401k in safe havens should be the same as your age.
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Specializes in Critical Care,Recovery, ED.

The early you start saving, especially in a tax advantaged vehicle the better off you will be. For every 10 years delay you have in starting to save for retirement you basically have to save twice as much per year to make up for the lost decade(s).

I would be cautious about bonds in this economic environment because as interest rates go higher the value of your current bond holdings will decrease. If your real close to retirement then some bond holdings may be prudent, but IMHO I'd wait on bonds until interest rates go higher which they eventually will.

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Specializes in LTC.

I started a 401k thru my job about 2 years ago, it has NO match to it which I didnt find out til after I enrolled in it...but Ive kept it at 1 % because I have too many bills to pay right now..I am the only income at the moment...but I live as frugally as I can and dont touch my savings account or retirement. My plan is to start an IRA at my bank when I pay down 3 more of my debts...which hopefully will be by next year.

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Specializes in Family Nurse Practitioner.

We live simply so it hasn't been a problem continuing to save the max amount toward our retirement.

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Specializes in Med/Surg, Geriatrics.
As a person who has started living on retirement income I can only say, "you better put something away for retirement". My husband and I did without so much stuff that I saw other people have so we could save for retirement. To those who say they are going to work till age 70 my question is, "what if you health give out?" Now for those who do not have a job I say, "as soon as you get one start putting as much as you can in your 401K or 403 B". If you have a choice between place with traditional style pension and and 401K take the traditional pension. If you change jobs, NEVER stick the money from your 401K in your pocket, always roll it over. Don't borrow against it to buy house or send your kids to school. People are going to fly up in my face about this advice but it is the way I always lived and I am NOT ONE BIT sorry. My baby boomer friends that partied and bought new cars every year and went sky diving and on cruises all the time are sorry but I am not. The nicest thing about the whole deal is that when you get in your fifties and the abuse from management starts because they want older workers out, you can just give them the finger. Retire and take it easy or do what ever you want.

Did I ever tell you, you're my hero? :yeah:

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Specializes in Med/Surg, Geriatrics.

I am currently putting away 30% of my salary. I didn't do the right thing when I was younger; I wanted to spend as much time with my kids as possible so I always worked part-time or prn. Still I could have saved something. Then I hit my late 30s with no money in the bank. The only good thing I did was avoid debt and we made sure that we could pay our mortgage with one salary so we didn't get in over our heads on that. So now I'm playing catch up big time. I finally realized that good health and continued employment is not guaranteed to me. So IF I maintain my current salary and IF I stay in good health and IF I keep a good job then I should be in pretty good shape by the time I'm in my early 50s. That's a lot of if's and I don't like it, but that's the position I put myself in.

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Specializes in Family Nurse Practitioner.
As a person who has started living on retirement income I can only say, "you better put something away for retirement". My husband and I did without so much stuff that I saw other people have so we could save for retirement. To those who say they are going to work till age 70 my question is, "what if you health give out?" Now for those who do not have a job I say, "as soon as you get one start putting as much as you can in your 401K or 403 B". If you have a choice between place with traditional style pension and and 401K take the traditional pension. If you change jobs, NEVER stick the money from your 401K in your pocket, always roll it over. Don't borrow against it to buy house or send your kids to school. People are going to fly up in my face about this advice but it is the way I always lived and I am NOT ONE BIT sorry. My baby boomer friends that partied and bought new cars every year and went sky diving and on cruises all the time are sorry but I am not. The nicest thing about the whole deal is that when you get in your fifties and the abuse from management starts because they want older workers out, you can just give them the finger. Retire and take it easy or do what ever you want.

Great advice, as I said earlier we live very simply and if it weren't for my need for health insurance I'd be waving the middle finger now. :D

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We weren't good about it in our 20s, but we've done well, particularly starting in our thirties.

I'm a nurse, DH is a teacher, so we aren't raking in the big bucks, but we live a simple lifestyle (our preference) and are able to put about 7K a year into retirement, plus we're saving for kids' college and socking a little away in our personal savings each month.

The recession is ultimately temporary and has not negatively affected us much at all. We'll be able to continue our lifestyle in retirement, without any difficulties. Presently we are better off financially than we have ever been before, and each year for the last 5 years has been like that.

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