Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
most companies (to include mccdonalds) offer 401k's and/or profit sharing
most companies will match up to a certain percentage (usually 5% or 10%)
let's say you make 40k
you contribute 10% to you 401k weekly....thats only 76 a week..the price of going out to Red Lobster
a recession hits (the stock market falls from 14k to 6k)...you INCREASE your contibution by BUYing more at 6k...which will have an increased value once the stockmarket goes back to 13k
its not rocket science...its not luck..its common sense
Common sense isn't so common.
401K is only the tip of the iceberg. I'l make a giant leap and say let's assume that most people have a 401K if it's available at their work. I'm talking about the big time investments in stocks, bonds, mutual funds, etc. If you have two kids in college, there's not disposable income to invest.
Invest 10% of a 40K income? Good lord, you're the one who's always saying that $250K is barely middle class on Long Island, and you're suggesting someone invest 10% of a 40K income? Here's a little story I found yesterday on "Planet Money" that tells how people at different income levels spend their money. Despite what you guys think, lower income people are not spending it all on i-pads, smart phones and the like.
"Both the similarities and the differences are striking.
Everyone devotes a huge chunk of their budget to housing, for example. Poor, middle class and rich families spend similar shares of their budgets on clothing and shoes, and on food outside the home.
But poor families spend a much larger share of their budget on basic necessities such as food at home, utilities and health care. Rich families are able to devote a much bigger chunk of their spending to education, and a much, much bigger share to saving for retirement. (The retirement line includes contributions to Social Security and to private retirement plans, by the way.)"
... The market DOES have to do with timing - our own lifespan. There comes a specific point at which we will need our investments no matter what the market is doing then.
It is similar to the real estate market. How many people thought of their homes as a major investment and thought they would just downsize upon retirement? Now the house has lost value and probably they have to stay put or just rent it out in the hopes that the market will recover.
No one said investing in stock markets did not involve time or timing. I said you cannot rely on timing the market and you should not try to. This statement is still true.
Invest 10% of a 40K income? Good lord, you're the one who's always saying that $250K is barely middle class on Long Island, and you're suggesting someone invest 10% of a 40K income? Here's a little story I found yesterday on "Planet Money" that tells how people at different income levels spend their money. Despite what you guys think, lower income people are not spending it all on i-pads, smart phones and the like.
I used 40K as an example..because I figured if I said 60k or 90k you would sit there and say "most people dont make that"...there is no pleasing some people
I make 60k a year....I used (prior to 2008) put 10% into my 401k....since 2009, I put 20% (pre-tax) into my 401k..my company matches up to 5%
the fact is that no-one who is working should have lost much in the 09 recession..especially since the stockmarket (which 401ks are mostly based on) has made back nearly all the losses
Quote:
and you're suggesting someone invest 10% of a 40K income?
How many of these people had huge 401k's that tanked after Enron went up? ?
most of those made everything back and then some
Quote:
How many lost large life savings in the past few years
all have made back nearly everypenny
stock market jan 2007........12,400
stock market jan 2007........12,400
stock market oct 2007........14,000
stock market jan 2008........13,000
stock market nov 2008........9,600
stock market mar 2009........6,500
stock market jul 2012........13,000
anyone with a 401k shouyld have made everypenny back...and If they were smart/savvy they would have increased their investment when it dropped, since it was destined to bounce back (the only questions were, what was bottom?, and how fast/slow the bounce back would be?)
Last edited by workingclasshero; 08-02-2012 at 09:02 AM..
As they say in NY, "Ged oudda he-ah!" Not if you had to retire before now. Not if a lot of things.
Quote:
Originally Posted by workingclasshero
I used 40K as an example..because I figured if I said 60k or 90k you would sit there and say "most people dont make that"...there is no pleasing some people
I make 60k a year....I used (prior to 2008) put 10% into my 401k....since 2009, I put 20% (pre-tax) into my 401k..my company matches up to 5%
the fact is that no-one who is working should have lost much in the 09 recession..especially since the stockmarket (which 401ks are mostly based on) has made back nearly all the losses
uhm..that is the standard the people invest
You didn't have kids in college then, did you? Isn't your oldest just now 18? You're going to learn a lot if s/he is going to college.
Re: the bold, see my link. It has a chart that shows how much people at different income levels invest. At 40K, unless you're single and living with a roommate or in Mom and Dad's home, you don't have 10% left over to invest.
As they say in NY, "Ged oudda he-ah!" Not if you had to retire before now. Not if a lot of things.
You didn't have kids in college then, did you? Isn't your oldest just now 18? You're going to learn a lot if s/he is going to college.
Re: the bold, see my link. It has a chart that shows how much people at different income levels invest. At 40K, unless you're single and living with a roommate or in Mom and Dad's home, you don't have 10% left over to invest.
Quote:
Not if you had to retire before now
uhm..for DECADES it has been told to 'investors' near retirment to use less risky avenues
Quote:
Not if you had to retire before now
HAD?? to retire..in the last 3 years???
stock market jan 2008........13,000
stock market jul 2012........13,000
sorry but your EXCUSE is LAME
Quote:
Isn't your oldest just now 18? You're going to learn a lot if s/he is going to college.
actually he has been in the "early college" program for the last 3 years..he graduated HS this year with not only a HS diploma, but also an assoiciates degree...he WORKS HIS BUT OFF,
Quote:
At 40K, unless you're single and living with a roommate or in Mom and Dad's home, you don't have 10% left over to invest
I call shenanigans......I was a single dad, renting an apartment making 30k and still put 10% away......
uhm..for DECADES it has been told to 'investors' near retirment to use less risky avenues
HAD?? to retire..in the last 3 years???
stock market jan 2008........13,000
stock market jul 2012........13,000
sorry but your EXCUSE is LAME
actually he has been in the "early college" program for the last 3 years..he graduated HS this year with not only a HS diploma, but also an assoiciates degree...he WORKS HIS BUT OFF,
I call shenanigans......I was a single dad, renting an apartment making 30k and still put 10% away......
While there are no more "mandatory" retirements, have you heard of this thing in the rest of the US anyway (for all I know not on Long Island) called "the recession"? Lots of people's jobs just sorted of ended. Or, they got laid off and couldn't find another job. I know quite a few "consultants", meaning unemployed, in their 60s. Then there are those who have to retire for health reasons.
Glad your son has his associate's. That's not what I was referring to. You get a kid, or worse yet, two, at residential colleges, and THERE'S NOT MUCH LEFT!
The bottom line is this: Excuse makers will always make excuses for why they weren't successful, why they didn't save, why they couldn't do this, why they couldn't do that.
People who believe in personal responsibility find a way to make it happen. Which is why these people will always be the "ruling class" over the unsuccessful types who make excuses and whine endlessly about how there's a "ruling class" that's just so evil because they have more.
The bottom line is this: Excuse makers will always make excuses for why they weren't successful, why they didn't save, why they couldn't do this, why they couldn't do that.
People who believe in personal responsibility find a way to make it happen. Which is why these people will always be the "ruling class" over the unsuccessful types who make excuses and whine endlessly about how there's a "ruling class" that's just so evil because they have more.
I agree. Too many people make excuses for why they don't save and invest.
They don't believe in "pay yourself first" even if it's just $20/week.
One can have as little as 5% taken from their paychecks for 401K investment.
Or enroll in DRIP with various companies and build up that portfolio over time.
Use that IRS refund to invest for your future, not buy the latest techno gadget.
Yes it takes restraint in this consumer oriented society so focused on "bling".
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
