I have 150k in a govt 414h plan. We have an 8/8 match we must put in 8% of our pay and the employer matches 8%.
I plan on working another 10 years. There is a total of 13,500 a year going in the account now for the combined monies. What do you think growth on this should be in 10 years time including all future contribution - hoping for an 8 to 10 % annual return
i am currently 57
You should check with the custodian of your plan. They should be able to do a projection for you. A 414h plan is a money purchase plan which I believe usually provides an annuity upon retirement. The money is invested in an insurance company's general account and in most cases makes more like 4% than 10% at the moment.
So I did a rough calculation for you. Assuming you put $13,500 a year for 10 years in this account which is starting at $150,000 and gets 4% interest, you will have a future value of $384,120. Obviously, if you get some raises and put more in, you will end up with a higher value. But in any case, we are talking about something around $400,000.
If this is not enough, I highly recommend saving more money. Look at your options for tax-deferred savings through contributing to an IRA.
In addition to what David mentions above, your hope for 8-10% per year may be somewhat aggressive. Remember that there is always a trade off between risk and return when investing. More risk = more potential return. You can certainly aim for 8-10% per year in your retirement portfolio, but that goal will come attached with more risk and volatility. In other words, an 8-10% return goal will make it more likely that the value of your investments will go down.
Depending on the structure of your 414h plan, there could be a way to arrange your investments in a way that shoots for 8-10% per year. However, since you're 10 years from retirement I'd make absolutely sure that you have the capacity and willingness to bear that investment risk. You might find it helpful to speak with a fee-only professional to help sort these things out.
You may also consider if you qualify to save to a Roth IRA. I would sit down with a financial advisor who will consider current and future tax opportunities. Many who have pensions are in the same tax bracket in retirement as they are in their working years, and in those cases it often makes sense to pay some portion of your taxes today in order to avoid them in a Roth account in the future.