jericho Posted August 30, 2017 Posted August 30, 2017 Who has one? I have a question? Can you lose the money you put into it. Like wake up one morning and it all be gone?
Oldbird Posted August 30, 2017 Posted August 30, 2017 It is all tied to investments, so in theory - yes.
jericho Posted August 30, 2017 Author Posted August 30, 2017 It is all tied to investments, so in theory - yes. Thats kind of what I thought.
UKMustangFan Posted August 30, 2017 Posted August 30, 2017 Can it happen? Yeah, theoretically it can. The chances of it actually happening are very very very slim. Most 401(k)s invest in mutual funds so unless we had a total market collapse like way back in 1929, you won't lose everything. Plus, almost all have bond and money market options which pretty much protect you against any market volatility.
woodsrider Posted August 30, 2017 Posted August 30, 2017 I have one. I started it 15 or 20 years ago. Yes, you can lose it all but would be near impossible for it to happen. I did take a hit in 2008 like most but it's come back and then some since. You only truly lose if you pull out the money when it takes a hit. 401K's are an ultra marathon, not a sprint or even 5K.
UKMustangFan Posted August 30, 2017 Posted August 30, 2017 401k's are great, especially if your employer matches a certain %. Take full advantage of whatever their match is. Anything above that, that you'd like to invest, I'd suggest opening a Roth IRA. Contributions are after-tax, but earnings are tax-free.
TAC Posted August 30, 2017 Posted August 30, 2017 If your company offers one, participate in it. What ever they match put in at least that amount. Every year you get a raise, add another % or more. You will never miss the money and will end up with a nice little nest egg. Start early.
afi100guy Posted August 30, 2017 Posted August 30, 2017 If your company offers one, participate in it. What ever they match put in at least that amount. Every year you get a raise, add another % or more. You will never miss the money and will end up with a nice little nest egg. Start early. This. 100 Times this!! I made the decision a long time ago that I will be self-sufficient in my retirement. Anything I get from the government will just be extra.
woodsrider Posted August 30, 2017 Posted August 30, 2017 401k's are great, especially if your employer matches a certain %. Take full advantage of whatever their match is. Anything above that, that you'd like to invest, I'd suggest opening a Roth IRA. Contributions are after-tax, but earnings are tax-free. We have the option of a Roth 401K. Is that typically a better choice than a traditional? Do you know how it works if you roll a traditional over to a roth?
UKMustangFan Posted August 30, 2017 Posted August 30, 2017 We have the option of a Roth 401K. Is that typically a better choice than a traditional? Do you know how it works if you roll a traditional over to a roth? If you roll a traditional into a Roth, you basically have to take a distribution, which includes paying taxes (and presumably early withdrawal penalties) on the traditional money. Not a lot of places offer Roth 401Ks, but IMO they're a better option than a traditional 401K. Personally I think the Roth IRA is the best option just because IRAs give you a much larger investment portfolio to select from. You have thousands of choices. 401Ks limit you to just the funds that your specific plan offers.
TAC Posted August 30, 2017 Posted August 30, 2017 Roth's are great, especially at a young age. I believe they let you withdrawal for life changing events without penalty? Buy a house, have a kid? Can someone confirm?
TAC Posted August 30, 2017 Posted August 30, 2017 This. 100 Times this!! I made the decision a long time ago that I will be self-sufficient in my retirement. Anything I get from the government will just be extra. I got a late start to mine. Made sure the boys got an early jump on it. I'm trying to make up now, but it is a challenge. The earlier you start the easier it is.
UKMustangFan Posted August 30, 2017 Posted August 30, 2017 Roth's are great, especially at a young age. I believe they let you withdrawal for life changing events without penalty? Buy a house, have a kid? Can someone confirm? There are some other factors, such as how long you've had the account, but here's a good guide.
Lawnboy13 Posted August 30, 2017 Posted August 30, 2017 I agree with most everyone.....great investment vehicle, especially if your company matches like mine. I've been putting 15% of every paycheck in mine since I started at FedEx (1994). Also been buying FedEx stock since then......at last look it's over $200 a share.
Purple88 Posted August 30, 2017 Posted August 30, 2017 I agree with most everyone.....great investment vehicle, especially if your company matches like mine. I've been putting 15% of every paycheck in mine since I started at FedEx (1994). Also been buying FedEx stock since then......at last look it's over $200 a share. The popcorn is on Lawnboy! :dancingpa:dancingpa:dancingpa
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