I'm an incoming intern, and have some questions about things I heard during HR orientation. This guy came in and was telling all the interns to fill out a form to defer paying into social security. Instead using that money to "pay themselves". He said that money would actually go into a Target Day fund, based on your birthday. He told everyone they should do it today. I was a little skeptical because I don't like anyone telling me I need to do something right away. After his talk, I asked him a some questions and found out that he is works for Empower Retirement and there is an annual fee of 0.18% of the first $50,000, with a quarterly fee of $2.50 up to $5,555.56, with 0.045% charged after that.
I'm not sure if this is a good plan. I became even more leary when I told him that I will think about it and not sign up today, he said well social security is going broke. Which may be true, I just felt like it was a scare tactic, to get me and all my colleagues to sign up. By the way most of them were signing up without asking questions.
I'm wondering everyone's thoughts. Is this a good plan? Can I defer social security and invest in something else? Should I not pay into Social Security? I've read in WCI that residents should invest in Roth 401 (K)/403 (B) or Roth IRA.
I'm not sure if this is a good plan. I became even more leary when I told him that I will think about it and not sign up today, he said well social security is going broke. Which may be true, I just felt like it was a scare tactic, to get me and all my colleagues to sign up. By the way most of them were signing up without asking questions.
I'm wondering everyone's thoughts. Is this a good plan? Can I defer social security and invest in something else? Should I not pay into Social Security? I've read in WCI that residents should invest in Roth 401 (K)/403 (B) or Roth IRA.
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