Daily Money - The Most Important Employee Benefit

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December 21, 2021

Companies are rethinking employee perks as they delay their return-to-office plans. For example, Apple recently announced that it would give both corporate and retail workers a $1,000 bonus that can be used for home office needs. Bonuses are great, but they’re gravy. Employees know the real meat-and-potatoes benefit is the 401(k). The difference between a good, low-fee retirement plan and a mediocre one can add up to many thousands over the course of a career. Nearly three-quarters of employees in a recent survey said they would likely leave their job for another that offered better financial benefits. Read more about it in today’s edition.
 
This is Retire with Money’s last edition of 2021. Happy holidays and see you in the New Year!

Best wishes,
 
 
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Timely Retirement News, Insights and Advice

A high-quality retirement offering is no longer a “nice to have.”

Not according to Gen z investors.

In today’s hot market, buyers are fielding all sorts of contingencies.

Retire With Money Community News

What are you up to these days?

My primary hobby (avocation) is writing. I’ve published eight books and many hundreds of articles. My most recent writing project is creating a non-monetized website, www.DoubtersParish.com, which helps thinking people navigate faith in the twenty-first century. I also write a column for my local paper. And I volunteer with SHIP (State Health Insurance Assistance Program), which helps people navigate Medicare. My wife loves gardening, music, dancing and art. We take special joy seeing our two young grandchildren almost every day. They live less than a mile down the road. In fact, my wife is pretty much a rockstar grandmother! They call our home “wonderland.”
 
Sweet! What’s your saving and investing philosophy?

In the 30 years before we retired, we saved/invested an average of 27.5% of our gross income. I maxed out my 403(b) pension account and we both maxed out our Roth accounts. We invested additional money into non-qualified funds. We were able to save a lot by 1) not going into debt, 2) buying Toyotas and keeping them for at least a decade (my current Camry is 11 years old and her Celica is 21 years old and they both still drive fine!), 3) limiting other expenses and 4) investing in boring index funds, mostly with Vanguard. Today, we keep three years of needed cash in a money-market bucket in case the market tanks. The rest is placed in a 55/45 stock/bond portfolio, mostly with Vanguard index funds.
 
We never felt like we missed anything by not spending too much. Instead, we had a very rich life. And we still do.
 
Nice! Any advice for folks preparing for retirement?

When I was a young minister, still in my 20s, an older pastor who was a mentor talked to me about finances. He said, “Martin, you’ll never make a lot of money in this profession. But if you will stay out of debt, give 10%, save 10% (and a lot more if possible) and live on the rest, it will serve you well.” He was right.
 
Money itself never motivated me very much. However, saving a significant percentage of our income did give us some wonderful options in life, including going to seminary, leaving a job for doctoral work and having adequate funds to comfortably retire at age 62. We plan on taking Social Security at our full retirement age or later.

We use a Vanguard money manager to help us with our finances. They provide excellent service at a small fee (about one third of one percent). It’s well worth paying for the professional help.

Retirement News From Around The Web

Should You Change Your Holiday Plans?
Six epidemiologists say what they’re doing in light of the rapid spread of the omicron variant. VOX

3 Tricky Decisions for Every Retirement Plan
Not even the experts agree on the answers. MORNINGSTAR

Proposed Changes to the U.S. Retirement System Are Still on the Table in Congress 
Here’s where things stand right now. CNBC

To Gig or Not to Gig?
An older gig worker reflects on the true payout of his freelance jobs. NEXT AVENUE

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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