Just started my 401k, thoughts?

[anonymous6]

3% is too low for your age. try 10% for awhile and you'll be surprised that you don't even miss it. plus you save on your taxes. after 6 months go up to 15% and see how that works. actually at your age you really should try to MAX out your 401k. after 30 years you will have a couple million dollars.

use the calculator at the website and you'll see. I have been maxing out for years. I save over 5000 dollars on my taxes every year and the amount I have accumulated is mucho dinero..........it's actually embarrassing. I don't want the wife to even know. may give her ideas.

 

[Brownslave688]

The highest match that I have ever seen is 6%.

I know. Those jobs are few and far between. My wife just interviewed for a job that maxes out their contributions. Needless to say keeping our fingers crossed.

 

[UpstateNYUPSer(Ret)]

I would suggest that you adjust the withholdings on your W-4 but that almost backfired on me last year.

 

[UpstateNYUPSer(Ret)]

I know. Those jobs are few and far between. My wife just interviewed for a job that maxes out their contributions. Needless to say keeping our fingers crossed.

So if your wife contributed 35% they would match it?

 

[Brownslave688]

So if your wife contributed 35% they would match it?

No no they don't match anything. Just automatically max out what they can contribute on the employees behalf. Which in 2014 I think is something like 54k.

 

[UpstateNYUPSer(Ret)]

No no they don't match anything. Just automatically max out what they can contribute on the employees behalf. Which in 2014 I think is something like 54k.

Why in the world would any employer do that? I can understand automatically starting the 401k and funding it with a minimal amount, up to 5%, but to max it out?

The limit this year is $17.5K ($5.5K catch-up). You would have to triple it to get to $54K.

 

[UnconTROLLed]

I've had my 401k contributions divided into two funds, S&P 400 and International. Averaging 7-8% a week, I've been as high as 15% and low as 3%. Began in 2006, now age 35...won't give away the sum but it's on-par with what I expected when first starting out.

I suggest when first starting out, not to spread too thin your investments...i.e. three or less funds.

 

[brownmonster]

I would suggest that you adjust the withholdings on your W-4 but that almost backfired on me last year.

C'mon man! The tax tax adjustment is automatic. When my kids were young I was putting in 17%. Now they are in college the wife and I each put in 8%. Comes out to about a grand a month. I help the kids with rent and food but they chose the expensive school, they can pay also.

 

[Brownslave688]

Why in the world would any employer do that? I can understand automatically starting the 401k and funding it with a minimal amount, up to 5%, but to max it out?

The limit this year is $17.5K ($5.5K catch-up). You would have to triple it to get to $54K.

Like i said the limit you can put in individually is 17.5 your employer can put in 54k on your behalf. So total 71.5k. I assume this is a way to compensate the employee but not pay taxes on that compensation.

The 54k would be about a 25% match on the salary so we are talking about a very well compensated profession here. However we are also talking a profession that takes 7 years of school minimum and someone's life is in your hands at all times.

 

[UpstateNYUPSer(Ret)]

I assume this would be in lieu of a defined benefit pension plan.

The limit in 2014 is $52K ($57.5 catch-up) for a total limit of $69.5K ($75K catch-up).

 

[Brownslave688]

I assume this would be in lieu of a defined benefit pension plan.

The limit in 2014 is $52K ($57.5 catch-up) for a total limit of $69.5K ($75K catch-up).

Yes no defined pension. I mean that would just be greedy

 

[HEFFERNAN]

Only 3%???

What's the point?

I am doing 12% pretax, $50/week post tax and $50 a week buying stock. I should probably double my post tax.

This is why I asked him what his employment status is.
3% is rather low but we don't know his financial position.

I came on here a couple years back and had said my 401k was at 3%
I also dealt with some backlash from members
I was dealing with massive credit card debt and could not afford anymore than that
As I paid the debt off, I kept hiking up my percentage along with my pay raises
Since I live within my means now and no credit card debt, I am at a comfortable 10% and can't wait to get it higher when our raise kicks in

Despite working part time or full time, financial conditions will dominate a person's ability to participate fully
To the OP - Keep up the good work, live within your means and participate more as your income increases

@ Sleeve PLEASE CHANGE YOUR AVATAR IT IS FREAKING ME OUT

 

[barnyard]

@ Sleeve PLEASE CHANGE YOUR AVATAR IT IS FREAKING ME OUT

You can change your profile settings so that no avatars are displayed. Same with signatures.

 

[Catatonic]

You can change your profile settings so that no avatars are displayed. Same with signatures.

I guess tooner can do that so she does not have to see your signature.

 

[HEFFERNAN]

You can change your profile settings so that no avatars are displayed. Same with signatures.

There should have been a "LOL" after my comment

I'm not that squirmish

 

[barnyard]

I guess tooner can do that so she does not have to see your signature.

Before I used it as a signature, I sent her a PM to make sure that she understood it was a joke.

 

[barnyard]

There should have been a "LOL" after my comment

I'm not that squirmish

Some do not know about those features though. If you are using a smaller screen, eliminating both also frees up some screen space to view more content.

 

[UPSGUY72]

I prefer the tax break now and will worry about the tax hit later.

I prefer giving the tax man less money so I pay on what I pay in and not what I payed in and profits I make.

 

[Catatonic]

I prefer giving the tax man less money so I pay on what I pay in and not what I payed in and profits I make.

​And hopefully, the National government does not change rules on you at some future date.

 

[brownmonster]

​And hopefully, the National government does not change rules on you at some future date.

Agreed. I do not trust the Roth.