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I contribute 12% of my base salary to my 401K, which gets a 4% employer match. I also contribute 12% of all of my commission checks and bonuses.
In addition, dollar cost averaging post-tax dollars into several index mutual funds: S&P 500 index, mid-cap index, small-cap index, international index, and a small-cap actively managed fund. Also, paying off out mortgage early, by paying two extra payments per year.
Companies managed to kill two birds with one stone when they replace traditional pensions with 401k.
They save money by not having to fund a pension. Then encourage employees to put money in the market through 401k. Having to choose between no other work retirement pension or 401k, most join the 401k machinery.
Most companies do not encourage any particular investment so your suggestion they push investments in the stock market is a fallacy. Most plans have access to a cash equivalent or short term bond fund as well as other fixed income instruments
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Few realize that the money they so dutifully put in their 401k each month goes toward paying others ahead in line with a huge amount of it going to company insiders who get the stock for nothing or pay very little for
it.
This is entirely false
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Oh, and the company's contributions to their employees' 401k are a tax deduction. In other words, that company contribution cost them nothing.
This is false as well, tax deductions don't make something free
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Company insiders and early investors continually cash out every year while the employees continue to put their hard-earned money in the 401k. The selling is supported by incoming money from 401ks and other sources like mutual funds where people are told they are long-term investors and thus should keep their money in the funds for many years.
You are on a roll of falsehoods here. Your company insiders, your 401k investments and the performance is only linked if you wish them to be
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Everyone is happy. The market keeps going up....until it doesn't. And everything comes crashing
down. Everyone loses, right? Not really. Those company insiders and early investors have long ago made their money. But don't worry. You are a long-term investor. The market will rebound. It's only your retirement money.
The truth is you don't have a clue what you are talking about here
Stock funds invest in stocks which benefit insiders at all companies.
Please, do yourself a favorite. Get some basic understandings and comprehension skill first, even for being a pretender.
The benefit of there isn't anything you could actually calculate and the same potential line of benefits extends to all investors in said company. All of this isn't exclusive to 401ks though so your rant is entirety misguided
Had to take you off my ignore list this one time and respond. No, the truth is you don't a have clue what you are
talking about. The worse thing is nobody tells you, so you keep trolling the forum attacking people like you know what you are talking about. You don't. What a sad
little life you have going for yourself!
Combined we contribute 25% to 401K's. Also contribute $100 a month to a Roth Ira I started years ago. We have decided to build up savings account and not up 401K and Ira amounts. Reason being, we are about 10 years out from retirement and want at least 100K in savings. Sure it does make much on interest BUT it is safe and will not go down with market swings.
I know someone is going to respond and say we are losing money due to inflation with money in savings and not investing. Perhaps true but what happens if stock market tanks and we have to wait for recovery. Cash is still king.
Had to take you off my ignore list this one time and respond. No, the truth is you don't a have clue what you are
talking about. The worse thing is nobody tells you, so you keep trolling the forum attacking people like you know what you are talking about. You don't. What a sad
little life you have going for yourself!
I didn't attack you at all. I did respond to a host of nonsense in your post and you failed to respond to any of it
That's not really astonishingly high. Looks to be about 25-30%. I'd consider something closer to 50-60% to be astonishingly high. If the recommended is 15% before employer match saving a bit above that isn't really that high IMO. But it looks like you are doing a good job! Congrats!
it is about 60%. I only spend about $20-25k per year.
Stock funds invest in stocks which benefit insiders at all companies.
Please, do yourself a favorite. Get some basic understandings and comprehension skill first, even for being a pretender.
Stocks benefit me too, and I'm not a pretender I'm an investor just like anyone else who has money in the stock market.
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Originally Posted by davidt1
Had to take you off my ignore list this one time and respond. No, the truth is you don't a have clue what you are !
Most of your arguments seem to be based on accusing others of not knowing what they are talking about, instead of actual supporting your position. That says a lot.
I contribute 9% of my salary to my 401k, which is matched 100% by the company, max out my Roth, and put 'fun money' in a brokerage account instead of leaving it in savings. The brokerage money is on hiatus temporarily until the remainder of my student loans are paid off. I'm sick of the recurring payments.
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