+- MacResource (https://forums.macresource.com)
+-- Forum: My Category (https://forums.macresource.com/forumdisplay.php?fid=1)
+--- Forum: Tips and Deals (https://forums.macresource.com/forumdisplay.php?fid=3)
+--- Thread: 401(k) (/showthread.php?tid=25130)
Re: 401(k) - raz - 12-31-2006
[quote elmo3][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.
While I will concede that for a great many people, instant gratification is more important than long term security, I will disagree with your statement.
http://www.cazelaw.com/medianincome.php lists median income on a per state basis. In PA (picked at random because I live here), 2006 median income for a family of 4 is $68,646. After food, rent/mortgage, utilities, gas, clothing, and taxes I strongly doubt that there's $1500 left at the end of the year - much less $15000.
That effectively eliminates half of the population from "a great many can". Add in tuition, car payments, medical expenses, day care, ... and it gets even worse.
Most people I know are above the median income, and a few of them save nothing. But, the vast majority of the population has been losing economic ground since the late 70s.