I need advice on 401K

[Grey]

I use Edward Jones. Your first visit is free.

Sweet. Thx!

 

[brownmonster]

The substantially equal periodic payment exception is available to anyone with a 401k plan, regardless of age, which makes it an attractive escape hatch. It is called a Section 72(t) distribution. In a 72(t) withdrawal, the distributions must be "substantially equal" payments based upon your life expectancy. Once the distributions begin, they must continue for a period of five years or until you reach age 59½, which ever is longest. The full rules and life expectancy tables can be found in IRS Publication 590. This option generally give you the least retirement pay out available.

True but this is not known as the rule of 72.

 

[IVE GOTTA PACKAGE 4U]

True but this is not known as the rule of 72.

Is that the rule on how long it takes your money to double?

 

[brownmonster]

Is that the rule on how long it takes your money to double?

Yes.

 

[IVE GOTTA PACKAGE 4U]

Yes.

Thanks. It's hard to think,before having my morning coffee.

 

[upschuck]

True but this is not known as the rule of 72.

Is that the rule on how long it takes your money to double?

Yes.

Then wouldn't a 72% return actually be 100% return?

 

[IVE GOTTA PACKAGE 4U]

Then wouldn't a 72% return actually be 100% return?

With compounding, yes.

 

[upschuck]

With compounding, yes.

Then with 100% return it doubles every 8.6 months giving me a return of ~ 140% right? WOW, It is easy to make money in stock market.

 

[IVE GOTTA PACKAGE 4U]

Then with 100% return it doubles every 8.6 months giving me a return of ~ 140% right? WOW, It is easy to make money in stock market.

I wish it was that easy.

 

[upschuck]

I wish it was that easy.

Difference between compound and simple interest.

 

[IVE GOTTA PACKAGE 4U]

Difference between compound and simple interest.

I meant making easy money betting on stocks

 

[upschuck]

I meant making easy money betting on stocks

I guess you didn't follow my line of questioning, equating 72% to 140%.

 

[upschuck]

I meant making easy money betting on stocks

What about all the Day Traders?

 

[IVE GOTTA PACKAGE 4U]

I guess you didn't follow my line of questioning, equating 72% to 140%.

Too early for that.

 

[IVE GOTTA PACKAGE 4U]

What about all the Day Traders?

You can make some money real fast or lose it even faster.

 

[olroadbeech]

compound interest has been called the 8th wonder of the world.

to illustrate.

you are given a choice.

1. $1,000,000.00 ( one million dollars )

2. 1 penny doubled for 30 days.

most people take the million bucks.

 

[bleedinbrown58]

compound interest has been called the 8th wonder of the world.

to illustrate.

you are given a choice.

1. $1,000,000.00 ( one million dollars )

2. 1 penny doubled for 30 days.

most people take the million bucks.

Because many people are morons incapable of doing simple math. It's not rocket science.

 

[Damondogg]

How do I get started with it and can I contribute to both standard 401K along with the Roth? I contribute 5% to standard 401K. Should I have an IRA as well?

 

[EvanStone]

Talk to your financial adviser.

 

[upschuck]

Yes, you can do both, just select After Tax contributions in your 401k and your done.