Retirement planning for those without a pension plan??

[CanBeGrumpy]

How are those of you without pension plans saving for retirement? Dh and I are putting the max contribution into his 401K and we also both have IRAs. Is there more we should be doing? We seem to be "on track" for our ages, but I am so afraid that the stock market will crash or something and we will be left with nothing. I am not eligible for 401K since I am a temp and work part time.

Also, I am 6 years younger than Dh. If we can't fully fund both of our IRAs in a particular year, would it make more sense to put more $$ in mine or his? If we put it in his, we could access it sooner since he is older, but if we put it in mine, it would have more time to grow. I am leaning toward putting it in his with the earlier access. Any opinions?

T

 

[dvcgirl]

How are those of you without pension plans saving for retirement? Dh and I are putting the max contribution into his 401K and we also both have IRAs. Is there more we should be doing? We seem to be "on track" for our ages, but I am so afraid that the stock market will crash or something and we will be left with nothing. I am not eligible for 401K since I am a temp and work part time.

Also, I am 6 years younger than Dh. If we can't fully fund both of our IRAs in a particular year, would it make more sense to put more $$ in mine or his? If we put it in his, we could access it sooner since he is older, but if we put it in mine, it would have more time to grow. I am leaning toward putting it in his with the earlier access. Any opinions?

T

You may want to post this on the budget board. This board moves very fast, and I think overall you'll have a better chance of getting responses over there.

Fully funding your 401k is great. However, many financial types would advise you to fully fund the 401K up to the employee match, and then fully fun both of your Roth IRAs...8,000. And then go back to the 401K and max it out. Beyond that...you'll be investing in taxable accounts.

As to whether it is enough. Only you know that answer. There are tons of retirement planning calculators out there to help you along. I like the one at www.motleyfool.com and www.choosetosave.org/ballpark/ It's tough to know how much to save if you don't have a goal in mind. Once you have that number you'll have an idea of whether you need to increase your savings.