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Old 06-09-2011, 04:06 PM
 
31 posts, read 144,753 times
Reputation: 34

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I will be starting my job in August and I was just looking at the firm's 401k plan. They match 25% of up to the first 6 % of my eligible compensation saved. Basically, for every 4 dollars I save they firm adds $1.

Now, I am thinking about saving and investing some money. I believe that I will be able to save about $1400 per month. Out of this amount, I want to put $400 into my emergency funds account.

What do you guys think how should I save money for the long term and also where and how should I invest some of this money.


401k is a safe and easy way to save money, however, I am not from the US so if I move back home (which I plan to do in 10-15 years) I will need to pay penalty fees on my 401k account.

Any ideas?

Thanks
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Old 06-09-2011, 04:15 PM
 
24,497 posts, read 37,520,656 times
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I don't have an answer for you... but you can always maintain your 401k here while living in the other country if you don't need the money in the other country right away.
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Old 06-09-2011, 07:39 PM
 
Location: US Empire, Pac NW
5,008 posts, read 11,327,689 times
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That's tricky. I would say still put money into your 401k because even with the early withdrawal penalty and taxes, the automatic 25% ROI that you get form your employer is immediate.

One thing you may want to look into is whether you can contribute your after-tax income to the 401k. If you can, then that would be a better way to go because it's after-tax ... no early withdrawal penalty, no additional taxes. Only capital gains tax on any returns and maybe something from the company match.
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Old 06-12-2011, 07:12 PM
 
12,671 posts, read 21,961,425 times
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Quote:
Originally Posted by geryorama View Post
I will be starting my job in August and I was just looking at the firm's 401k plan. They match 25% of up to the first 6 % of my eligible compensation saved. Basically, for every 4 dollars I save they firm adds $1.

Now, I am thinking about saving and investing some money. I believe that I will be able to save about $1400 per month. Out of this amount, I want to put $400 into my emergency funds account.

What do you guys think how should I save money for the long term and also where and how should I invest some of this money.


401k is a safe and easy way to save money, however, I am not from the US so if I move back home (which I plan to do in 10-15 years) I will need to pay penalty fees on my 401k account.

Any ideas?

Thanks
I would use the 6% atleast!

Make sure you have your Emergency account build up first.

Roth IRA is an excellent option also.
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Old 06-12-2011, 07:13 PM
 
12,671 posts, read 21,961,425 times
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Nothing is safe in investing. Its how YOU manage your $. Asset allocation and funds are very important part of 401K.
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Old 06-12-2011, 07:15 PM
 
Location: MMU->ABE->ATL->ASH
9,230 posts, read 18,554,555 times
Reputation: 10201
do the 401K up to the match, then fund up your emergency fund, then fund a roth
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Old 06-17-2011, 08:20 AM
 
1,461 posts, read 1,371,552 times
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To leave it here or to take it with you also depends on your opinion of where the US dollar will be when you leave. If you think the USD will decline against your country's currency, then it may pay to pay the penalty. You could look at the cash match as the funding source for the penalty. If you do that, you may come out ahead by taking the $ with you.
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Old 06-17-2011, 06:00 PM
 
12,671 posts, read 21,961,425 times
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USD$ will always be the King.
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Old 06-17-2011, 06:12 PM
 
40 posts, read 133,156 times
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Don't place anything into a 401 unless your employer is matching it. Otherwise, invest this money into paying off your mortgage. You do not want to go into retirement and owe on a house!
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Old 06-17-2011, 06:17 PM
 
28,461 posts, read 76,269,328 times
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What you really need is advice from an expert that has done this in your home country. I have a co-worker frm South Africa and he mentioned that he could create something called an International Superannuization Account for his retirement but his tax guy back home has the details and it is already the weekend over there so he ain't gonna call...
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