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401(k)
#21
[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.
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Messages In This Thread
401(k) - by Greg the dogsitter - 12-30-2006, 04:35 PM
Re: 401(k) - by ztirffritz - 12-30-2006, 04:50 PM
Re: 401(k) - by elmo3 - 12-30-2006, 04:52 PM
Re: 401(k) - by rob banzai - 12-30-2006, 04:57 PM
Re: 401(k) - by wurm - 12-30-2006, 04:57 PM
Re: 401(k) - by Greg the dogsitter - 12-30-2006, 05:05 PM
Re: 401(k) - by Lux Interior - 12-30-2006, 05:08 PM
Re: 401(k) - by Greg the dogsitter - 12-30-2006, 05:11 PM
Re: 401(k) - by Lux Interior - 12-30-2006, 05:20 PM
Re: 401(k) - by msienkiewicz - 12-30-2006, 05:24 PM
Re: 401(k) - by Greg the dogsitter - 12-30-2006, 05:28 PM
Re: 401(k) - by trisho. - 12-30-2006, 07:44 PM
Re: 401(k) - by STL - 12-30-2006, 08:06 PM
Re: 401(k) - by elmo3 - 12-30-2006, 09:06 PM
Re: 401(k) - by Paul F. - 12-30-2006, 11:24 PM
Re: 401(k) - by raz - 12-30-2006, 11:50 PM
Re: 401(k) - by ztirffritz - 12-30-2006, 11:52 PM
Re: 401(k) - by elmo3 - 12-31-2006, 12:19 AM
Re: 401(k) - by davemchine - 12-31-2006, 06:03 AM
Re: 401(k) - by Racer X - 12-31-2006, 08:26 AM
Re: 401(k) - by raz - 12-31-2006, 04:39 PM

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