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28 October 2012, 01:57 PM | #31 | |
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All in all, that's a very nice deduction, if you can afford it. |
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29 October 2012, 12:56 AM | #32 |
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I usually "max out" on my 401K, to reduce my taxable income for the year.
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29 October 2012, 12:58 AM | #33 |
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I have been doing up to my company matching. I guess if you can't beat the return of your portfolio on your own (considering the tax benefit) then it is worth it to go up to your max.
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29 October 2012, 02:26 AM | #34 |
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generally avoid placing any funds in the company stock fund and you may also want to calculate the tax savings off set with the pre tax contribution if you are unable to save the max contribution. also to consider is that tax rates right now may be the lowest we will see versus those in the future due to national debt which may make the roth a better choice than traditional pre tax depending on age and bracket and investment window
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29 October 2012, 04:37 AM | #35 | |
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They kick in a benifit bonus of 3% to use any way you want. So they will give you your 3% contribution and match it with their 3%. And she does another 4% out of her check. If the company plan was her primary retirement plan, we'd be maxing the plan, though. |
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30 October 2012, 03:25 AM | #36 |
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My employer matches up to 6%, then fifty cents on the dollar at 7% and 8%.
I use my year end performance bonus to take me to the max limit if I have not yet reached it. |
30 October 2012, 04:12 AM | #37 |
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Hm, that sounds interested. I suppose I'll have to take a look at my options! Thanks for the heads up!
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7 February 2014, 12:32 PM | #38 |
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I have to say, I am afraid to contribute to the 401k.
I believe it will be confiscated from us. Either outright, or by means testing you out of other entitlements or benefits. Someone is going to have to buy the treasuries when they finally stop printing (which they won't - which will lead to dollar collapse). I believe Obama's SOTU speech where the "MyIRA" was introduced was the first shot across the bow of forcing everyone's retirement accounts into treasuries. The plan, as I have researched it, shows for everyone to put 5% into treasuries. Other IRA/Roth/401 will be limited to 5k per year and a portion will be forced into treasuries. I think the 401k has had it's day. The government is just too broke to keep it's hand out of them. I hope you diligent savers don't get Argentina'd or Cypressed. |
7 February 2014, 01:01 PM | #39 |
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With the exception of 401k retirement savings being taken by the government it's the best way for an " uninterested" investor to save. With a more hands on and involved approach an active investor will do better outside of the limited choices in a 401k which will negate any tax loses from a taxable account.
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7 February 2014, 01:24 PM | #40 |
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Best practice is to max out the company contribution. Above that one should consider potential return of other options as well.
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How can you have any pudding if you don't eat yer meat???? |
7 February 2014, 01:28 PM | #41 |
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No company match.
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I bought a cheap watch from the crazy man Floating down canal It doesn't use numbers or moving hands It always just says "now" Now you may be thinking that I was had But this watch is never wrong And if I have trouble the warranty said Breathe In, Breathe Out, Move On J. Buffett Instagram: eastbayrider46 |
7 February 2014, 01:36 PM | #42 |
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Company match equals free money.
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7 February 2014, 02:34 PM | #43 |
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The company I work for matches 5%. I put in 20%. Max. it
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7 February 2014, 02:44 PM | #44 |
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You should always match the company match limit. As mentioned, that is free money and the same as a 6% annual raise if that is what they give.
As to investing more, depends on how your IRA is arranged and it's return, but again, the tax deferment is a free "discount" on your taxes and if managed properly can give annual dividends and interest that is again, free money..
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7 February 2014, 02:56 PM | #45 | |
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Quote:
A 401k is a company sponsored (and partially funded) personal retirement account. YOU choose the fund that your money is invested in. There isn't much difference between a 401 and an IRA is that respect. Or you just put cash under your mattress? |
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7 February 2014, 06:30 PM | #46 |
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I forget what my company matches.. somewhere between 3 and 6 percent. I put in 10 percent.
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8 February 2014, 02:26 AM | #47 |
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I am going to reiterate what everyone has said. Always contribute at least up you what your company matches. You get an immediate 100% return. Plus, you are reducing your taxable income. Contribute more if you can. I try to max out as much as I am allowed. I have 401k, Roth IRA, and 529 accounts for my kids college. You will be amazed how fast your account grows. Cheers!
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8 February 2014, 03:52 AM | #48 |
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My company contributes a fixed 5% as long as I do 2 or 3%, but I do my max each year... options/restricted stock (with active DRIPs) all go to retirement as well...
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8 February 2014, 04:01 AM | #49 |
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I used to, but stopped right before the recession.......a bird in the hand....& lost less.
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8 February 2014, 04:48 AM | #50 |
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Make sure you get the match! I'm shocked how many folks at my work don't! More you save the better. Roth, 401k, whatever---- save save save is the name of the game!
One person was telling me how our work 401k was bad and why they don't put any $$$ in it--- they withdrew from it---- so the next day I asked them for $5, they handed it to me, and I gave them a $10 bill back. They were confused and said I was dumb for doing that---- I said you would be dumber to NOT do it! Hint hint.... They caught my drift I hope!
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8 February 2014, 04:52 AM | #51 |
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My company matches up to 6% and I contribute 10%. Automatically take out 10% additional for savings each pay period and put a set amount in the ROTH. It is free money, take it!
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8 February 2014, 05:02 AM | #52 |
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I pay about 25% on top of my workers salary on their pension plan, they contribute with around 5% of their pay.
Same for all businesses. Great for the worker, a lot of lost Rolex's for me.
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8 February 2014, 07:50 AM | #53 |
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I max mine, my wife maxes hers plus we save save save for college for my 2 kids. My parents covered my college, I'd like to try and do the same for my kids.
All that saving hopefully will mean an early retirement for me! We do try to live a little modestly at this point in our lives without being ridiculously frugal. Sure, I have a decent car and nice watch, but we live in a modest home in the country that I'll have payed off before I'm 45. Now, hopefully I don't get hit by a bus before I retire so I can enjoy those savings! |
8 February 2014, 08:41 AM | #54 |
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One subtle point on 401k matching--some employers have a "make up contribution" that they will post to your account after the calendar year ends, because the employee saved "too quickly" in hitting their 401K match limit, leaving money on the table. My employer does this (thankfully).
Point is, to maximize your match, assuming you put in the full $17K annually, try to set it such that your last contributions to hit the $17K limit are in December. Remember, if a pay period has no 401K contribution from you, you get no match from your employer. In my case, the true up every year amounts to another $2K or so contributed from the employer match. Didn't see that posted in this thread, and thought it worth a mention if you weren't aware of this for those who max out their 401K contribution limits.
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8 February 2014, 09:20 AM | #55 |
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I contribute $17,500, employer matches 5% of income, gives everyone 3% no matter what, and we have a "guaranteed profit sharing" of 5% that also goes in 401k.
They contribut 13% into 401k. I should be OK at retirement, but I suppose it could go either way? I have 20-25 years to go. |
8 February 2014, 12:16 PM | #56 | |
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