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+--- Thread: 401(k) (/showthread.php?tid=25130)
Re: 401(k) - Greg the dogsitter - 12-30-2006
[quote Lux Interior]If I were in your shoes, you'd be yelling at me, "Hey gimme back my (&$#@*ing shoes!"
Between that comment and the one about your daily weight loss regimen, you're doing excellent work this morning!
Re: 401(k) - trisho. - 12-30-2006
[quote Lux Interior] You do not want to pay PMI, so get 10 percent.
It's usually 20% to avoid PMI I believe, but I'm sure it also depends on one's lender.
Re: 401(k) - STL - 12-30-2006
The company match is free money. You can not pass up that opportunity.
Contribute at least enough to get the maximum company match.
Re: 401(k) - elmo3 - 12-30-2006
[quote Greg the dogsitter]"The most I can" means "the most that we can do without until retirement," right?
No, you need to put in however much help you achieve your retirement income goal.
Financial Engines is a GREAT fee-based financial advisor (web site).
Re: 401(k) - Paul F. - 12-30-2006
Get every single penny of matching funds you can from your employer.
Sure, you have to wait until retirement to withdraw...
But come that day, you will very very much enjoy having "real money" rather than bare subsistence money.
Even if you don't max out your 401k EVERY year, do it NOW for a couple years...
The earlier you accumulate principle, the more it ends up after 20-30 years interest and growth!
Re: 401(k) - raz - 12-30-2006
Per http://benefitsattorney.com/modules.php?name=415 the maximum contribution to a 401(k) for 2006 is $15,000 and for 2007 is $15,500.
If you can really afford to sock that much away, great. Few people can.
Rule 1 is "Start Early". Rule 2 is "Get the match".
So, definitely contribute to get the most out of your employer. Beyond that, try to up your contribution to put half of your raise away each year. Then, let it grow. After a few years of compound growth, you will take great comfort in the size of your nest egg.
Heck, after a while, a down market is just a blip.
Re: 401(k) - ztirffritz - 12-30-2006
Time is much more powerful than the quantity invested. Put in as much as you can as early as you can. If you must cut back later for kids/car/home/divorce, so be it, but at least what you already have in the pot will earn more for you over time.
Re: 401(k) - elmo3 - 12-31-2006
[quote raz]Per http://benefitsattorney.com/modules.php?name=415 the maximum contribution to a 401(k) for 2006 is $15,000 and for 2007 is $15,500.
If you can really afford to sock that much away, great. Few people can.
I disagree. Many, many can.
The fact is, few people *do*--for a number of reasons, virtually all of which add up to that they'd rather pay the tax today and spend the after-tax money today on things like Macintosh computers and leases on fancy cars instead of save for their future.
Re: 401(k) - davemchine - 12-31-2006
When I started contributing to my 401k plan I did a little reading and found that a general rule of thumb is to contiribute no less than 5% of your income and to aim for 15%. Of course the advice to contribute all the way up to the amount your company matches is excellent advice also. Like everyone has said, it is free money!
Dave
Re: 401(k) - Racer X - 12-31-2006
Greg and Kathy, this is a tough one. depending on where you live, property may increase 5-20% a year. yes, 20% a year. So you need to figure out if the 9% you put in an IRA, that may be matched 6% by an employer, making 15%, is better than maybe 20% on a house, and you won't be pissing away your rent money every month either.
Tough call. The house won't net you anything until you sell it, so you may get a huge net payoff at the end, but you will no longer have a roof over your heads either.
Bottom line though, is if your employer has any program in place where they give you free money, you have to be a complete drooling cleft palate moron to pass up on it. And do whatever you need to do to make a mortgage payment at the same time. Here in Seattle, today I couldn't qualify for the mortgage I got 4 years ago. If your income goes up, say 6% a year, and housing goes up 10% a year.....you figure that out....but don't wait to long....