[jlspeed29]

Originally Posted by ChaneRZ

10% bi weekly

biweekly?
you mean per paycheck? or are you self employed and do your own retirement contributions?

[Litos]

i put in 6% and the company matches 5%.....

i owed the IRS $2700 this year.

fuck them and fuck Obama......

[SchlauCow]

r0th 401k
15% bi weekly

[ejheverest]

I contribute 16500/yr plus my company matches 100% up to 6%.

[ChaneRZ]

Originally Posted by jlspeed29

biweekly?
you mean per paycheck? or are you self employed and do your own retirement contributions?

haha let's just say every other week. I work in a medical field. 10% pre-tax of every paycheck goes to Fidelity. We had Valic before but they replaced it with Fidelity. Oh and our employer matches too.

[Italteen3]

6% weekly. Started first week I turned 21, will be 3 years this summer. Figured I'd get an early start on retiring/saving money!

[SilverII]

13%

50% match up to 6%

[Repsol]

More info on benefits of Roth over 401k?

[ejheverest]

I had the choice of a traditional 401k plan or a ROTH 401k Plan, I chose the Roth401k plan since I am <30 yrs old and do not know what the tax rates will be like in 25-30 years when I start drawing on my retirement accounts. Do you need the tax break now or later? that will decide your answer.

[SilverII]

to maximize returns,
1 contribute to company match max
2 then max out roth,
3 if you have any left over, max out 401k

[BayMoWe335]

$16,500 + company matches 8%.

$5,000/yr in my Roth IRA as well.

Other money is invested in my brokerage account.

[BimmerPod]

(Before I go on my crazy thoughts, I do contribute 5% as that is what my company matches)

Given: Traditional retirement accounts such as 401k and IRA are based on a tax deferred system (govt does not tax you now but will when you take that money out). People contribute because: you can save money pre-tax, and, some people's cases, put themselves in a lower tax bracket. The assumption is that when you retire, you'll be in a lower tax bracket. Here's where my hesitancy begins:

Our government is spending/increasing budget/bigger debts/loose fiscal & monetary policies at an unimaginable rate. What are the consequences?

For one, the destruction of the USD. All this bullshit quantitative easing...QE1, QE2, QE99...they are manipulating debt markets, and injecting the market with tons of cash. This punishes savers. There will be a vicious inflation backlash when they decide to unwind all the QEs. Multiply this by 20, 30 years, and by the time we retire, our retirement 401k and IRA accounts will have struggled to keep up with all this inflation we will experience.

Two - all this govt spending will eventually require the govt to increase taxes over time. Just look at the history of the increasing tax rates over one generation's worth of time. You want to be like Europe and have universal health care? Prepare to pay taxes, European style. The assumption that you'll be in a 'lower' tax bracket when you start accessing your retirement account is a huge assumption.

This is just food for thought, and part of the reason why I won't contribute more than what my company matches. I am not a crazy person who thinks all govt is evil...we did need the help in 2008/2009, but continued quantitative easing is poisonous to our future. That in itself is tied to our political system. Whatever party/person in office will do what's best for him/her/them to get re-elected/stay in office, even if it means borrowing against the future, because hey, not their problem once they're out of office. This continued manipulation of debt markets is exactly what Greenspan did to create the original asset bubble that burst in the latter 2000s. Not only that, but they're just delaying the inevitable. It's like spilling milk, and making a huge mess, but instead of cleaning it properly, you throw a rug over it. Eventually it'll have to be dealt with, but when you do, it'll be exponentially worse.

flamesuit on

[Chowbow]

How is inflation going to affect cash in your bank account vs. money in your 401k/IRA? A US dollar today is a US dollar today, whatever account it's in. If inflation is out of control, that same dollar you put in your 401k is going to buy just as little as that dollar you keep in your wallet.

[Babydragon]

Nothing. Stocks are over inflated and the market will tank again. There are smarter places to put your money, mutual funds and stocks aint the place for me.

[MrRoboto]

Originally Posted by hajduk

Nothing. Stocks are over inflated and the market will tank again. There are smarter places to put your money, mutual funds and stocks aint the place for me.

Like where...realestate?

[fboutlaw]

Depending on your 401k, you should have options to invest in some interesting options. For instance, right now, I have the options of:
1. Standard lifepath plan (garbage)
2. Pick your own funds out of a list of about 40 (where I'm at)
3. Self managed, basically a stock account

If you're concerned about the dollar, find a commodities fund or put it into emerging markets.

BTW, I max out my 401k, company matches 50% of 6% (I put in 14%), and I have maxed out Roth IRA at 5k last couple of years. Unfortunately I'll be out of the Roth this year as there is an upper bounds for contribution.

[BayMoWe335]

Originally Posted by hajduk

Nothing. Stocks are over inflated and the market will tank again. There are smarter places to put your money, mutual funds and stocks aint the place for me.

Such as? Perma-bears like you appear to be (sorry if I mis-judged you) missed out on 100% gains from the bottom. Sure, I was down along the way, but I never took those losses. I bought more and more and more until I had stocks, ETFs, and mutual at such ridiculously low levels, I was rewarded for my patience. And I'm not genius stock picker...few are. People that think the market will crash again are just ignoring facts. Companies are making money, beating estimates, and raising guidance. Banks are recovering more slowly and housing hasn't bounced yet, but things ARE better than 2-3 years ago. Perma-bears do this while they are trampled by the bulls. We were too high 350 points ago in the S&P. Sure, they'll be a correction, but I think you missed your chance to buy GE at $6.

Stocks may feel like a game, but it's really the only reasonable way to grow your money reasonably quickly. Inflation? Wow, it's going to be a problem for sure. However, we know how to deal with it and will do so by raising interest rates. Worried about it? Add some GLD to your portfolio and make a killing. I have a significant % of my portfolio in gold for this reason.

If you consistently add to your positions, double down at 10% drops, and don't get distracted by the ups/downs, you will make money. It's really that simple. People like to point out the index has not paid well for 10 years, but they don't mention dollar cost averaging. Investing consistently is the key. The most successful investor in the world preaches this and we should do the same.

Everything has its ups and downs, including the "other" places you speak of, regardless of what they happen to be.

And if you don't contribute and your company matches, well, that's just stupid.

[CoconutPete]

5% plus 5% company match.

[Maestro]

Definitely different views on the subject.

I have been putting in the max % I could since I have been 21 and most all the companies I worked for matched at around 4%. If I keep this up and keep adjusting my investment strategy as needed I will be very well off when I retire. My wife has also been putting money in her 401K.

A number of people have brought up some good points which you have to consider. I call tell you in my case putting money in my 401K and my mortgage has reduced my tax liability. My overall affected federal taxes I have paid has been in the range of 12% to 19%, I never paid the max federal taxes due to my 401K. This is great assuming the taxes do not increase over time, which as it was pointed out they could.

Now here is the down side of 401K over a ROTH. You need to clear out your 401K by the particular age (I think it is 72 or 75) so that mean you will be drawing down your account far faster than it went in driving you to a higher tax bracket, since you most likely will not have a mortgage or other tax deduction at the time. The government know this, this why they limit a ROTH to $5k a years since there is no limit on when all the money must be out. Also, you can draw the principle out of the ROTH without touching the earning there by avoiding paying taxes longer until you start drawing on the earnings.

The government is hoping you do not live long enough to enjoy all the money in your 401K and you leave it to someone and they get hit with higher taxes.

Here is another benefit which I think states will eventually figure out but have not as far as I am aware. Some state do not tax 401K contribution and some do tax it. Calif does not tax it and lets you deduct it, however, Pennsylvania does tax it, of which I lived in both states. Now if you live in a state which does not tax the money going in, great, you live there while you work. When you retired move to a state which does tax the money go in, they do not tax any of the money coming out. In reality you are required to paid the state you lived in when the money was going in, however, I am not sure how they can come after you since you do not live in their state anymore.

For those of you who are not maxing out their 401Ks and may or may not being putting money into a ROTH, what other investment strategies are you doing. I too have a person investment account which I trade in from time to time, but I am careful about racking up too much capital gains.

[Babydragon]

Were talking about 401k, you're talking about day trading.


[QUOTE=BayMoWe335;9502016]

Originally Posted by hajduk

Nothing. Stocks are over inflated and the market will tank again. There are smarter places to put your money, mutual funds and stocks aint the place for me.

Such as? Perma-bears like you appear to be (sorry if I mis-judged you) missed out on 100% gains from the bottom. Sure, I was down along the way, but I never took those losses. I bought more and more and more until I had stocks, ETFs, and mutual at such ridiculously low levels, I was rewarded for my patience. And I'm not genius stock picker...few are. People that think the market will crash again are just ignoring facts. Companies are making money, beating estimates, and raising guidance. Banks are recovering more slowly and housing hasn't bounced yet, but things ARE better than 2-3 years ago. Perma-bears do this while they are trampled by the bulls. We were too high 350 points ago in the S

[Epacy2]

Need to change the poll to dollar amount. Percentage is different for everyone based on salary. I max plus 5% company match.