Friday, July 13, 2012

2nd Quarter Retirement Update

Another quarter down, and it’s time to look at how my Retirement Accounts are doing. I’m still in the process of merging some accounts together… just mailed off another form last week so it’s a process I hope to have half way finished by the end of the year. If I can get to the point where I have just one account at ICMA-RC and my two Roth’s I’ll call it a victory.
Investment Accounts

Vanguard Roth IRA--- All in Target Date Accounts. I just dropped $1750 into the account today so that kind of skews the growth rate since that money hasn’t had time to do anything yet.

  • Current Value $7,581.63
  • Amount Invested: $7,250.00
  • Grown 4.5% since inception.
ING Direct Roth IRA--- This was my initial Roth IRA that I used to learn about investing in different kinds of funds. When I learned enough and broke even, I transferred the funds from share-builder to this account and stuck the money in savings and cd’s. Now that my vanguard account is open, I need to start transferring the liquid amounts of money from this account to Vanguard… but I haven’t yet.

  • Current Value $19,764.83
  • Amount Invested: $19,000.00
  • Grown 4.2% since inception.
ICMA-RC 457 Account: This is my brand new 457 account that I opened at the start of this year so I can roll my 2 inactive work accounts into. For the time being I have it set to take $5 out of my paycheck since that’s the minimum amount. I have filled out the paperwork to transfer both accounts to here… but nothing has happened yet.
  • Current Value: $60.50
  • Amount Invested: $60.00
  • Grown 0.8% since inception
Nationwide 457 Account: Waiting for this to roll… (all employer contributions from when I was 16.)

  • Current Value: $1,037.52
ICMA-RC 401A Account: Waiting for this to roll…

  • Current Value: $1,061.09
  • Amount Invested: $898.62
  • Grown 18.07% since inception
Total: $39,505.57


The cash value of my pension currently sits at $19,219.05 as of June 30, 2011. New statements are made available in October of every year, so I have to wait until then to see how much it has grown over this last fiscal year with contributions and interest. If I were to quit today I could take this money and run with it or let it sit in the account and earn an automatic 6% interest until I wanted to just take the cash and invest it (and pay taxes on it)… OR… since I've been with my company at least 5 years, I could leave it in there and pull a pension at 55.

If I quit my job today and left with the intension of drawing a pension at 55, I would get $8,154.51 a year for life until I die.

But realistically, I plan to continue working here and take a full retirement option at 55. Based on our options, SCB and I decided that Option 2W would work best for us. It basically means that I will get a certain amount of money each year and if I were to die before SCB, he would continue to get the same amount I we would have been receiving already… and if he dies first, my amount would continue to be the same. (we basically choose to take a bit more now, instead of having

So, if I retire on my 55th birthday, my annual pension in today's dollars would be $33,618.00 a year.

@ 56, its $34,373.00… @ 57 $35,079.00… @ 58 $35,816.00

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