well, I’m far from the person to ask for financial advice, but your tax bracket can play a role in how much you want to contribute into your 401K, just a heads up/something to consider.
for example, if you’re sitting at the bottom end of a tax bracket, it’s wise to contribute enough (if it’s significant enough) so to bring you down to the top of the next lowest tax bracket and bringing you’re taxable income with it (can actually save you $$$, or so I’ve been told)
With that said, I’ve been putting in about 8% (I believe, will have to double check that) of my earnings since starting it back in January. I have 1/2 tied up in an interest account and the other 1/2 split into 2 stocks (the company picks them).
Unfortunately though, my company doesn’t contribute… but at the rate I’m going, I should be sitting on a VERY healthy retirement (if I make it that long lol). Partly due to the stocks part of my $$$ is invested in… but that also makes me nervous
Company matches 4% for me. My first year I traveled a ton and had no real expenses, so I put 15% of my income in to my 401K to build it up. I’ve dialed it back to 10% now for the past couple of years and its amazing how fast it builds up. I actually hate receiving account statements because I’m like “Shit, I could buy an M3 in Cash!”
Since I have been doing it for so long I have adjusted my spending and don’t really notice the 10% less difference.
Oh, and you should be 100% in fairly high risk stocks while you are young. Better chance for bigger returns and you can recover if you take a hit. As you age, you should slowly move towards safer investments.
OMG you guys not getting matched please take your money elsewhere. Unless you need the tax brek to drop brackets in the long run the tax break upon withdrawl of a Roth is going to be huge and you will not be happy.
my company goes through vanguard. i put away 7% every pay check. they make 100% match up to the first 5%. everything is invested in stocks at the moment.
OMG you guys not getting matched please take your money elsewhere. Unless you need the tax brek to drop brackets in the long run the tax break upon withdrawl of a Roth is going to be huge and you will not be happy.
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I was confused when reading the roth information…
It says you don’t get taxed on withdrawls, but other places it says you get taxed unless it’s for a house / school loans… etc.
my 401k plan is the only thing i miss since i left American Axle. I forget the numbers off the top of my head, but they were about as good as they could be.
OMG you guys not getting matched please take your money elsewhere.
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an older guy I work with told me the same thing. However, I really don’t follow this kind of thing too closely. I figured putting the money away is better than nothing.
If I brought it elsewhere, would said institution match the amount of money I put into it? Is it pre-tax?
One thing I like about Time Warner is they match 66.6% or 2/3rds of what you put in up to 10%. So that’s where mine sits at 10% boy do I enjoy free money.
One thing I like about Time Warner is they match 66.6% or 2/3rds of what you put in up to 10%. So that’s where mine sits at 10% boy do I enjoy free money.
It says you don’t get taxed on withdrawls, but other places it says you get taxed unless it’s for a house / school loans… etc.
ugh
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They are talking about taking out before early with the taxes. Taken out on time it comes out tax free:burnin:. But make sure you are putting money away you dont need because you will not be able to touch it untill 59.5 years old.
Standard order to follow until you haven no more money to invest:
Meet the requirements for the out the company match 401k (i.e if there is no match - put nothing here)
Max out RothIRA
If you still have money left over - max out the 401k
If you still have money left over - you’re doing much better than me and know better - don’t listen to me.
Standard order to follow until you haven no more money to invest:
Meet the requirements for the out the company match 401k (i.e if there is no match - put nothing here)
Max out RothIRA
If you still have money left over - max out the 401k
If you still have money left over - you’re doing much better than me and know better - don’t listen to me.
One thing I like about Time Warner is they match 66.6% or 2/3rds of what you put in up to 10%. So that’s where mine sits at 10% boy do I enjoy free money.
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:jawdrop:That is a good gig if you can get it!
No wonder my cable bill is so high!
One thing I like about Time Warner is they match 66.6% or 2/3rds of what you put in up to 10%. So that’s where mine sits at 10% boy do I enjoy free money.
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Back when it was adelphia it used to be similiar they would match 100% up to 3% then match 50% for another 3% it works out to be about the same but yeah that plan spoiled me. My current company matches 3% i believe which i guess is about average. Like everyone said its free money and you would be stupid not to do it.
Ok quick question. Do 401k’s withdrawl tax free or are they taxed upon withdrawl? Going to the guy someone answer within the hour…GO
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AFAIK, it’s tax free… but if you withdrawl early it’s taxed.
Although, from what I understand, if you need the cash from a heardship or for buying a house or something, it’s not taxed, but you have to pay it back in?
