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Old 10-28-2018, 03:14 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
3,915 posts, read 1,808,510 times
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JMO, you may discover that a 401k in a falling market will cost you wealth. You may want to consider a Roth or a taxable account.
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Old 10-28-2018, 04:18 PM
 
18,651 posts, read 13,447,962 times
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Quote:
Originally Posted by caco54 View Post
I am a retired executive and have substantial income between my pension and deferred income. I am delaying SS till FRA or even 70. Took the part time spot to stay out of my wife's hair. Job is with a non profit and I end up gifting back 15% of my pay. Contributed to the 401K to get the match (free money) that in the end due to the lower than 1,000 hours I won't be getting. Oh well.
The 1000 hour rule is pretty common so itís nice to see an exec falls to uncharted territory

Quote:
Originally Posted by leastprime View Post
JMO, you may discover that a 401k in a falling market will cost you wealth. You may want to consider a Roth or a taxable account.
What on earth are you talking about?
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Old 10-28-2018, 06:09 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
3,915 posts, read 1,808,510 times
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?^
Quote:
Originally Posted by lowexpectations

Quote:
Originally Posted by Originally Posted by leastprime View Post
JMO, you may discover that a 401k in a falling market will cost you wealth. You may want to consider a Roth or a taxable account.
What on earth are you talking about?
If OP is earning in wages $8000/yr2018, he sets aside 15% in 401k or $1200, and his marginal is 22% (deferred tax savings =$165): 1) What could he gain in taxables that can equal $165?; 2) What amount could he lose to tax-loss-harvest in a later year?; 3) What are OP's degrees of freedom in doing a 401k vs a taxable account?

OP's 401k P/L equation is substantially changed without the 4% match. The question now is whether a 401k is even worthwhile in a declining or increasing Market?

Last edited by leastprime; 10-28-2018 at 06:22 PM..
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Old 10-28-2018, 06:26 PM
 
Location: Florida
4,293 posts, read 3,625,872 times
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Quote:
Originally Posted by caco54 View Post
I am a retired executive and have substantial income between my pension and deferred income. I am delaying SS till FRA or even 70. Took the part time spot to stay out of my wife's hair. Job is with a non profit and I end up gifting back 15% of my pay. Contributed to the 401K to get the match (free money) that in the end due to the lower than 1,000 hours I won't be getting. Oh well.
Consider giving appreciated stock (no capital gains to you) or contributing money from a tax deferred account such as an IRA. You do not pay tax on the withdrawal. Make sure the stock or IRA money goes directly to the charity and never to you to pass on.

I agree with delaying to 70 as long as your medical history is good.
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Old 10-28-2018, 06:29 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
3,915 posts, read 1,808,510 times
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^that works too.
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Old 10-28-2018, 06:34 PM
 
605 posts, read 184,287 times
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Quote:
Originally Posted by leastprime View Post
?^

If OP is earning in wages $8000/yr2018, he sets aside 15% in 401k or $1200, and his marginal is 22% (deferred tax savings =$165): 1) What could he gain in taxables that can equal $165?; 2) What amount could he lose to tax-loss-harvest in a later year?; 3) What are OP's degrees of freedom in doing a 401k vs a taxable account?

OP's 401k P/L equation is substantially changed without the 4% match. The question now is whether a 401k is even worthwhile in a declining or increasing Market?
Hence why he needs to convince his company that keeping his 401k is worth it.

If he is contributing 10% of his salary, which is about $66 a month, and continues such, then for the company it could be a wash. Then there is no reason to stop his 401k. They've paid alot to establish it already.



After taxes and gasoline costs, a rough estimate is he's pulling in an extra $500 a month. Which is great combined with Social Security. Gets him out of the house and doing something part of the week yet overall, he is retired. This is about the exact amount of $$ I hope to make when I retire. perfect!
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Old 10-28-2018, 08:03 PM
 
18,651 posts, read 13,447,962 times
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Quote:
Originally Posted by leastprime View Post
?^

If OP is earning in wages $8000/yr2018, he sets aside 15% in 401k or $1200, and his marginal is 22% (deferred tax savings =$165): 1) What could he gain in taxables that can equal $165?; 2) What amount could he lose to tax-loss-harvest in a later year?; 3) What are OP's degrees of freedom in doing a 401k vs a taxable account?

OP's 401k P/L equation is substantially changed without the 4% match. The question now is whether a 401k is even worthwhile in a declining or increasing Market?
You are bringing up variables that could possibly be relevant but for most aren’t. This has nothing to do with his actual situation and could apply to any one at any time. Have you had this same mantra or it something new with the downturn?

Fwiw your statement was that “you may find a 401k in a declining market may cost you wealth” which on the face is just bs
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Old 10-28-2018, 08:30 PM
JL
 
7,348 posts, read 11,831,192 times
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Default Enough to retire, but

still need medical insurance. Are any of you in the situation where you have enough to retire, but due to not being 65, you don't have health insurance if you quit your full time job or having to buy it on your own is just too expensive. Plus a medical emergency can wipe you out.

So what options are there? I have a few friends in that situation now and i will be in that same position 3-4 yrs from now. They are tired of the job. I told them to just get a full time really low paying virtually stress free job just for the health insurance. That seems to be the only option since none of them have a pension and being around 51, 52 yrs old respectively, they would not be able to tap into their retirement funds(401k, Roth) w/o penalty till 59.5 anyway. They just have to work for another 7-8 yrs, so might as well get a stress free job.
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Old 10-28-2018, 08:34 PM
 
Location: Coastal Georgia
36,852 posts, read 45,285,942 times
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Hubby is retired and works about 20-25 hours at Home Depot. We are shocked at the way the 401k is piling up, despite the max pittance he puts in. Maybe OP could get just enough hours to get matching? Itís worth it, unless you just donít need the money.
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Old 10-29-2018, 08:27 AM
 
605 posts, read 184,287 times
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Quote:
Originally Posted by gentlearts View Post
Hubby is retired and works about 20-25 hours at Home Depot. We are shocked at the way the 401k is piling up, despite the max pittance he puts in. Maybe OP could get just enough hours to get matching? Itís worth it, unless you just donít need the money.
just curious....if it's ok.... but does your husband have health insurance thru Home Depot?
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