Retirement

meanmaryjean, DNP, RN · Feb 18, 2018

Very few places offer pensions any more. You need to be responsible for your own retirements savings. A Roth IRA is a great way to start- you fund it with after-tax dollars BUT you pay no tax when you withdraw the money and the accumulated interest upon reaching 59 1/2.

It's great that you're thinking of this NOW. I learned the other day that 1/3 of persons in their 50s have ZERO retirement savings. That is scary and sad.

**NICU Guy, BSN, RN** · Feb 18, 2018

New nurse here, wondering about retirement plans. What are some retirement plans available, do hospitals offer pensions? Since I am still young I am interested in being a travel nurse, how would that work towards saving money for my retirement? If I decide to change jobs can I move my 401k plan to my next job? Any feedback and advice are appreciated!

Most hospitals have done away with pensions. Most are now 401K/403B in which you put money into your retirement plan and they will match up to around 3% (you put in 3% and they put in 3%. When you leave a hospital, you have two choices: Roll the money over into your new employer's retirement plan or start an individual IRA and put the money from the first hospital into that account.

Ask your employer if your retirement plan at work has a Roth option.

Traditional: Any contributions (you or your employer) are not taxed until you start withdrawing the money in retirement. You pay taxes on the money you withdraw each month. You will pay taxes on both the money that you and your employer contributed, plus any increase in value. If you contributed $100k and the value is $500k when you retire, you will pay taxes on the whole $500k as you withdraw it.

Roth: You pay taxes on any contributions to your retirement plan each paycheck. When you retire, you pay no taxes on the money you withdraw. If you contributed $100k through out your work life and the value is $500k when you retire, the only taxes that you had to pay is on the $100k when you had the money put into your retirement plan each paycheck when you were working.

llg, PhD, RN · Feb 19, 2018

Start education yourself about the different options now and start contributing to a retirement plan very early in your career. Try your best to always qualify (and take) whatever matching funds your employer offers as that is "free money."

Don't be discouraged or think that your retirement savings are worth much effort because they are small to begin with. They start small, but if you keep contributing over time, they can grow to be very large. Even the largest ones were small to begin with.

... And when you are nearing retirement (like I am) and looking at your now large retirement funds, you'll be glad you started when you were young. You are wise to be thinking about this now.

Leader25, ASN, BSN, RN · Feb 28, 2018

The sooner you start planning the easier and better it will be for you.Defined benefit pension plans(those that paid a set monthly amount) have been phased out in favor of a defined contribution plan essentially a 403b.The other is a savings plan same as a 403b which you decide how much in pretax dollars you want to save from every paycheck.Both of theses plans you determine how to manage them ,risky or not ,it is up to you. The employer "pension"403 b has a percent that they contribute based on your salary and whatever union contract you have.

The savings (yours) 403b you can borrow against and pay back the loan at a reduced rate(witch is not recommended to do) but it is there .

If you change jobs they are portable as long as rolled over to another IRA within 30 days. You may withdraw after age 59.5 and pay taxes but no penalty.

You never know what the future will bring so a nest egg is a good idea.Keep all you pay stubs,if you are married /divorced keep all records,especially if there is a QODRO( child support,pension, liabilities. etc.)

Upon retiring you may withdraw all and reinvest for long term benefit. Start now with a certified financial planner,do your research.