Next year I turn 40, so I will be increasing my savings in order to afford to retire. One of the reasons why I joined the government was because they do have a small pension plan and offer a 401K plan that contributes 50% up to 5% on contributions. According to most financial experts, for people to retire using 401K plans they need to save at least 20% per year. I save about 15% through my 401K plan, so I will look to save the other 5% through investments like Roth IRA's and other vehicles.
The news coming out of Detroit doesn't look good though, and it looks to affect my father and Uncle as a result.
Hey Dad,Just wanted to drop you a note and tell you I have been thinking of you. Specifically with the news coming out of Detroit about GM and other automakers looking to claim bankruptcy.The reason why I am concerned is that according to this report on Frontline, there are new rules to the game when it comes to pensions and how bankruptcy can be used to restructure the agreements to retired people.Midway through the report, they cover the United Airline bankruptcy and how retires lost about 1/3 their monthly pension and how it was executed.I realize that you aren't strapped for cash or anything, and I don't want to cause you to worry. But if the people who structure the airline bankruptcy are the same people Detroit retains, it might result in good people like you and Uncle Joe getting benefits slashed.My only hope is the UAW leadership is wise to what happened in the Airline industry, and makes a stand.... Because in the end of a Bankruptcy, the banks get paid 1st, the lawyers and executives get paid 2nd, but the worker and US tax payers foot the bill and make the most concessions.Love,Todd
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