U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
Old 10-22-2011, 04:17 PM
Location: Wisconsin
21,554 posts, read 44,161,169 times
Reputation: 15180


Even with minimal returns, 401ks are great tax shelters. 25% with every contribution. I always maxed out my 401k, IRA and HSA for that reason. Could keep about 30k a year away from the tax man. Over the years I switched between stable asset and some stock funds. Eventually, I did an annual in-service rollover out of the 401k into a rollover IRA at a mutual fund b/c I didn't like the 401k choices. My plan allowed that. Got out of the market before the crash, luckily, with very nice profits.

A 401k is a great tool which my former employer did not initiate until the mid-80s. I jumped in happily. Their match was a paltry 25% of 4%, or 1% of one's income. They also had a DC plan to which they contributed 5% of one's salary beginning in 1994. So, I guess their overall retirement contribution was 6% of salary. Not overly generous by any means, but it is what it is.

The tax-shelter aspect, for me, was critical.
Reply With Quote Quick reply to this message

Old 10-23-2011, 07:18 AM
29,903 posts, read 34,959,090 times
Reputation: 11807
Originally Posted by midlifeman View Post
Are you happy with what you have earned? Was it worth it to buy and hold in a diversified portfolio? (maybe a little rebalancing) What would you do differently? Do you fee that this was the best strategy to secure your retirement?
Yes! It is a pre tax investment.
Reply With Quote Quick reply to this message
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top