401k
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- Gorbie
Do you?
I am pretty familiar with the concept here, just don't know whether it's for me.
Anyone else started one. Anyone seen any worthy benefits during their career? As far as careers go, I'm pretty green. So any advice would be nice.
- Mimio0
Are you starting your own? or is your employer offering you one?
- Gorbie0
Employer is offering.
A woman is coming in today to explain, but I'd like to hear any opinions.
I know some people may have lost a lot in the past few years.
- Duane0
i have a couple of different types of accounts. frankly, to me the whole thing is a bit confusing but it does make sense to invest (although the last couple of years have been brutal). i'd suggest you check out http://www.fool.com/. there is a ton of information there that may help you.
- mrdobolina0
I have one, if they allow you to choose which funds your contribution goes too.,Make sure you diversify it pretty well at first. Dont keep a constant eye on it either. Because if you shuffle the money around too much it will never make anything.
- unknown0
Would post a link to a Newsweek article if their site wasn't one of these that has to make $$ of their archived articles. ALL OUT HATRED OF SUCH THINGS.
Anyhow, I am eligible for one through my employer, but I don't think I make enough to feel like I'm contributing what I'd like to, especially considering, that, yes, people lost a good deal of their funds in the past few years.
At this point, being 25, I'm more concerned with building a savings account with the bank to work towards investments of some kind.
The article I was going to post talked about three different options to a traditional 401K, through the government, that looked like they provided more security and better results. I can't remember if these are active plans or ones that are about to be introduced. I'm going to look for the article, I may have the magazine somewhere around here.
Before I was done with college my Dad and I did some math on 401K investment over the course of a career. If you can average, over 35 years, around $1,500 a month (keep in mind later in a career you'd be making more, putting more in) at 12% interest, you'd be looking at around $600,000 saved, and this is not including potential employer matching.If anyone has any good links, please post them, this is good to know for plenty of people here I'm sure.
- mrdobolina0
I put 15% of my income into my 401k. Because I am shitty at saving money.
- paulrand0
sigh. mine's worth less than I've put into it
- Gorbie0
Testpilot's link is very informative. Still reading.
Thanks for the responses. I'm sure hoping my employer will be matching.
The interesting part... looks as though you can "defer" your 401k investment into another investment. Like maybe a home loan or stock. That sounds very interesting. This seems to avoid being taxed until you finally cash in your chips.
Anyone else?
- Biofreak0
just started mine up here like a week ago.
it is a good idea. i only put 5% in mine for the time being. but i will increase it a bit later. also stuck my junk in high risk investments since i dont have much money in it right now. so there isnt a lot to lose.
once i get more in it, i will start to spread it out a bit and put some in medium risk.
it is like free money really (if your company matches you well). mine comes out pre-tax, so that is cool.
do it do it do it do it do it! yay!
- Gorbie0
15% seems a fairly large amount. I'd probably go with about 5% aswell.
Anyone care to sare what sort of funds you chose?
I'd love to learn from your mistakes, instead of making my own! :)
- CX0
I have one with my employer. They match half of what you put in. I think it has 3-5k in there now. 5 if I was 100% vested.
Right now you are buying stocks cheap and they will go up eventually. So Ive been told not to worry if it seems like your losing money now.
I think its great especially a good idea if the employers match, then its stupid not to. I cant save money for shit either. If you up your percentage yourcould retire way early. Thats what I want to do.
- Nirvous0
Unless you have a Roth IRA, which I doubt, the 401k is your best bet to save up a good amount of money and not worry about it being taxed.
Put as much as you can afford (or that the employer will match) into it.
When you look into your 401k package take a look at the stocks and diversification it contains and check out those stock groups to compare the past performance and then create a risk assesment for each option
Experiment with these different allocations to see the impact on your retirement plans
If this is all greek to you, then read some books and get some financial advice from a pro. You have to take some control and grow up in the big bad world.
You dont want to be that 80 year old guy baggin groceries. Welcome to adulthood ... it's a pain in the ass.
- Duane0
to be more specific i have a roth ira that i started on my own and also a simple ira that is matched by my employer. i contribute roughly 5% of my income before taxes. i leave it alone for the most part and just keep contributing. it does add up.
- Gorbie0
What's the difference between an IRA and 401k?
(you can tell me to hit the books
if that is too complicated)
- Nirvous0
This is from Testpilot's link earlier.
- Gorbie0
Yeah. I did read that entire article. It helped quite a bit. Thank you.
I'm just curious as to what people round here are doing.
- BonSeff0
i contribute 6%. been doing it since 99. i know i am going to need it when im a geezer. social security will be long gone. even if you contribute 1%, its worth it in the long run
- Nirvous0
You may want to go into your local bank and have them take you through the steps. Even if you dont use their services you will be better prepared and knowledgable on the subject for future use. Control your future.
- wonderwagon0
no money, no honey...