View Poll Results: By age 30 how much have you saved for retirement?
$100,000.00 or more
20
13.89%
$25,000.00 to $99,999.00
54
37.50%
$5,000.00 to $24,999.00
38
26.39%
Haven't started a 401k, prayin on social security!
32
22.22%
Voters: 144. You may not vote on this poll
Retirement & 401k's: by age 30 how much have you saved??
10-24-2006, 06:48 AM
#21
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Originally Posted by 4mulaJoe
I'll just say everybody's situation is a little different. Do the math. I know for a fact I am makig the right choices barring some crazy stock market climb or crazy housing bust in Houston.
again..... barring an "interest only" loan. your way is less risk. his is more profitable in the long run if the investment choices dont tank!
10-24-2006, 07:00 AM
#22
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You never go wrong with putting into your 401K. I put in 20% along with my company match of 4%. They have a yearly max (15,000 per year) to which I have to pay close attention to so I don't lose my company match. Anything you put into it is non-taxed. At the end of the year when you file for income tax, you subtract that amount toward your yearly gross income and thats what you are taxed on. Its a win win situation. When you take a loan you pay interest towards yourself. But its always better to just leave it alone.
10-24-2006, 07:44 AM
#23
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I administer 401k plans for a living, have for 20 years now. Putting into a 401k is pre-tax dollars and to put in the maximum each year ($15,000 for 2006, up to $15,500 in 2007) and get match on top of it is smart. But don't front load your contributions, say you get a bonus and you want to put it all in the 401k so you don't get taxed at 30%, match is given paycheck by paycheck normally so in the long run you will miss out on match. Once you hit the allowed limit, no more match. So plan your contributions so you are contributing through the entire year.
Loans can be taken from your 401k normally, it is up to the company offering the plan whether loans are offered or not. Administratively they are a nightmare to track. But anyway normally most loan programs offer a general purpose loan, doesn't matter why you want it and you can take up to 5 years to pay it back. Loan programs may offer two loans at one time so normally the second loan can be to buy your principal residence and you can take up to 15 years to pay it back. You take out pre-tax dollars for the loan and then you pay it back to yourself with after tax dollars and normally the interest is prime plus one but it depends on the loan program. Normally you can only take one loan out during a 12 month period so if you take a general purpose loan out for something and pay it off in 3 months (lump sum only or the installments per the amortization schedule) you can't take another loan until the 12 month period is up from the date you took the loan.
When you leave a company you are entitled to a distribution whether that be a lump sum distribution which will be taxable to you plus a 10% penalty if you are not retirement age or you can roll it over to another 401k or an IRA. Once you roll into an IRA don't put any other money into that IRA rollover so in the future you can roll it back into a 401k if you have the opportunity. The rules state that if the balance is under $1,000 the "trustee" (company offering the plan) can force you to take a distribution by issuing a check if you don't do anything with it. Balance over $1,000 can be left in the plan for as long as you want to.
Smart thing is to keep your money in one place so if you job hop try and move your old balance to the new plan. If an IRA is the only thing at the time to roll it into again don't deposit any other money to that IRA and you can still roll it in later to a 401k once you get started.
Sorry so long.
Loans can be taken from your 401k normally, it is up to the company offering the plan whether loans are offered or not. Administratively they are a nightmare to track. But anyway normally most loan programs offer a general purpose loan, doesn't matter why you want it and you can take up to 5 years to pay it back. Loan programs may offer two loans at one time so normally the second loan can be to buy your principal residence and you can take up to 15 years to pay it back. You take out pre-tax dollars for the loan and then you pay it back to yourself with after tax dollars and normally the interest is prime plus one but it depends on the loan program. Normally you can only take one loan out during a 12 month period so if you take a general purpose loan out for something and pay it off in 3 months (lump sum only or the installments per the amortization schedule) you can't take another loan until the 12 month period is up from the date you took the loan.
When you leave a company you are entitled to a distribution whether that be a lump sum distribution which will be taxable to you plus a 10% penalty if you are not retirement age or you can roll it over to another 401k or an IRA. Once you roll into an IRA don't put any other money into that IRA rollover so in the future you can roll it back into a 401k if you have the opportunity. The rules state that if the balance is under $1,000 the "trustee" (company offering the plan) can force you to take a distribution by issuing a check if you don't do anything with it. Balance over $1,000 can be left in the plan for as long as you want to.
Smart thing is to keep your money in one place so if you job hop try and move your old balance to the new plan. If an IRA is the only thing at the time to roll it into again don't deposit any other money to that IRA and you can still roll it in later to a 401k once you get started.
Sorry so long.
10-24-2006, 08:19 AM
#24
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Originally Posted by Forteen3GT
again..... barring an "interest only" loan. your way is less risk. his is more profitable in the long run if the investment choices dont tank!
There are a lot of variables to consider. It definitely depends on how much money you have to work with. http://library.thinkquest.org/3096/3calcin.htm
You can do the math there. Don't forget about capital gains tax on those investments. The equity in a house does not get taxed when you use it to buy a better house to replace it.
10-24-2006, 04:04 PM
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Originally Posted by Forteen3GT
I am really interested in seeing that comparison.... can ya dig it up?
Damn.... 23 or 27% of up to a 4 percent contribution??? Verizon does 83% of a 6 percent contribution... then at the end of the year offers another .5-1.5% match of co. stock in the form of a mix. ....... no wonder they killed the pension plan.
Damn.... 23 or 27% of up to a 4 percent contribution??? Verizon does 83% of a 6 percent contribution... then at the end of the year offers another .5-1.5% match of co. stock in the form of a mix. ....... no wonder they killed the pension plan.
http://www.everettareamortgages.com/...0/19192031.pdf
Last edited by TEX02SS; 10-24-2006 at 04:28 PM.
10-24-2006, 04:16 PM
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Originally Posted by pSSycotic
I dont have a "regular" job like most lol..but me and the gf put 2k-3k a month away in our IRA...keep doing this and in 15yrs we wont need to work 
SEP is $44K + applicable catch-up
SIMPLE is $10,000 + applicable catch-up
I have worked as a broker/financial planner for 2 years now and I will say that if you are saving $2-3K per month, you are doing better than most.
Last edited by TEX02SS; 10-24-2006 at 04:23 PM.
10-24-2006, 05:29 PM
#33
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For those 10 people so far who "Haven't started a 401k, prayin on social security!", you're in real trouble. Camaros aren't a very lucrative investment, either.
I got a late start on my 401K in this lifetime, but thankfully not too late to get a large chunk built up so far. After reading that managing home equity document, I may make some changes there, too. That information crushed some of my preconceptions. Many institutions warn you to stay away from them:
http://moneycentral.msn.com/content/...ng/P118084.asp
I got a late start on my 401K in this lifetime, but thankfully not too late to get a large chunk built up so far. After reading that managing home equity document, I may make some changes there, too. That information crushed some of my preconceptions. Many institutions warn you to stay away from them:
http://moneycentral.msn.com/content/...ng/P118084.asp
10-24-2006, 05:53 PM
#35
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Originally Posted by CySevans
For those 10 people so far who "Haven't started a 401k, prayin on social security!", you're in real trouble. Camaros aren't a very lucrative investment, either.
I got a late start on my 401K in this lifetime, but thankfully not too late to get a large chunk built up so far. After reading that managing home equity document, I may make some changes there, too. That information crushed some of my preconceptions. Many institutions warn you to stay away from them:
http://moneycentral.msn.com/content/...ng/P118084.asp
I got a late start on my 401K in this lifetime, but thankfully not too late to get a large chunk built up so far. After reading that managing home equity document, I may make some changes there, too. That information crushed some of my preconceptions. Many institutions warn you to stay away from them:
http://moneycentral.msn.com/content/...ng/P118084.asp
That WAS an interesting article. I didn't know that it was now illegal for a bank to ask for a mortgage back. That is good info.
10-24-2006, 08:04 PM
#38
Originally Posted by IRace2ChevyII
I administer 401k plans for a living, have for 20 years now. Putting into a 401k is pre-tax dollars and to put in the maximum each year ($15,000 for 2006, up to $15,500 in 2007) and get match on top of it is smart. But don't front load your contributions, say you get a bonus and you want to put it all in the 401k so you don't get taxed at 30%, match is given paycheck by paycheck normally so in the long run you will miss out on match. Once you hit the allowed limit, no more match. So plan your contributions so you are contributing through the entire year.
Loans can be taken from your 401k normally, it is up to the company offering the plan whether loans are offered or not. Administratively they are a nightmare to track. But anyway normally most loan programs offer a general purpose loan, doesn't matter why you want it and you can take up to 5 years to pay it back. Loan programs may offer two loans at one time so normally the second loan can be to buy your principal residence and you can take up to 15 years to pay it back. You take out pre-tax dollars for the loan and then you pay it back to yourself with after tax dollars and normally the interest is prime plus one but it depends on the loan program. Normally you can only take one loan out during a 12 month period so if you take a general purpose loan out for something and pay it off in 3 months (lump sum only or the installments per the amortization schedule) you can't take another loan until the 12 month period is up from the date you took the loan.
When you leave a company you are entitled to a distribution whether that be a lump sum distribution which will be taxable to you plus a 10% penalty if you are not retirement age or you can roll it over to another 401k or an IRA. Once you roll into an IRA don't put any other money into that IRA rollover so in the future you can roll it back into a 401k if you have the opportunity. The rules state that if the balance is under $1,000 the "trustee" (company offering the plan) can force you to take a distribution by issuing a check if you don't do anything with it. Balance over $1,000 can be left in the plan for as long as you want to.
Smart thing is to keep your money in one place so if you job hop try and move your old balance to the new plan. If an IRA is the only thing at the time to roll it into again don't deposit any other money to that IRA and you can still roll it in later to a 401k once you get started.
Sorry so long.
Loans can be taken from your 401k normally, it is up to the company offering the plan whether loans are offered or not. Administratively they are a nightmare to track. But anyway normally most loan programs offer a general purpose loan, doesn't matter why you want it and you can take up to 5 years to pay it back. Loan programs may offer two loans at one time so normally the second loan can be to buy your principal residence and you can take up to 15 years to pay it back. You take out pre-tax dollars for the loan and then you pay it back to yourself with after tax dollars and normally the interest is prime plus one but it depends on the loan program. Normally you can only take one loan out during a 12 month period so if you take a general purpose loan out for something and pay it off in 3 months (lump sum only or the installments per the amortization schedule) you can't take another loan until the 12 month period is up from the date you took the loan.
When you leave a company you are entitled to a distribution whether that be a lump sum distribution which will be taxable to you plus a 10% penalty if you are not retirement age or you can roll it over to another 401k or an IRA. Once you roll into an IRA don't put any other money into that IRA rollover so in the future you can roll it back into a 401k if you have the opportunity. The rules state that if the balance is under $1,000 the "trustee" (company offering the plan) can force you to take a distribution by issuing a check if you don't do anything with it. Balance over $1,000 can be left in the plan for as long as you want to.
Smart thing is to keep your money in one place so if you job hop try and move your old balance to the new plan. If an IRA is the only thing at the time to roll it into again don't deposit any other money to that IRA and you can still roll it in later to a 401k once you get started.
Sorry so long.
36K here , I sucked and did not start one until I was 27. I am 35 now!
10-24-2006, 08:25 PM
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I have been rolling my 401k for the last 13 yrs. I put 20% down on my new home and I put 6% of my salary of which my company matches 100% up to 6% (max). I have managed pretty well so far IMO.
