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Old 10-27-2009, 08:34 PM
 
Location: Pennsylvania
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It might be a moot point. She might not be able to contribute more to the 401K.
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Old 10-28-2009, 02:20 AM
 
72,120 posts, read 72,094,203 times
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Quote:
Originally Posted by Iwillthink4u View Post
......... this looks like a whole bunch of copying and pasting to me!!!

it doesn't really answer my original question though....


cheers.
no copying and pasting at all, it was more a responce to cdelena who suggested a little bit into the 401k to meet employers match and then use a roth. i failed to see any advantage to going roth in this case. she makes alot of money now and is not in a low tax bracket. her tax bracket hopefully is higher now then when she retires later on .

without knowing what her choices are in her 401k and fees etc now one can really say what she should do. im a big fan of socking away as much retirement money as one can while they can. sometimes life and its little zingers hit you with expenses left and right and long term savings stops for a while. once a house and family are in the picture retirement saving usually gets cut to a min.

many 401k plans have high fee , low perferformance or just poor choices as far as putting a diversified portfolio together.. if your friend has good solid choices and she has about 8 months of emergency money set up and disability insurance in place then save away in the 401k. the term 401k is only a tax status of an account, not the investment choices so there are quite alot of pieces of the puzzle missing..

Last edited by mathjak107; 10-28-2009 at 02:48 AM..
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Old 10-28-2009, 07:58 AM
 
Location: Two Rivers, Wisconsin
11,731 posts, read 11,574,271 times
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Personally, I always contributed the max allowed to my 401K when I was working, 10% before tax, and 10% after tax. If someone is young, has company match, they should take full advantage, keeping on top of the choices made within the 401K.

I was fortunate to have many, many choices within Vanguard plus had a great deal of information available. There's pros and cons to anything, I had friends where their 401K plans were just this side of scarey. Ours was upfront, above board, totally our own, the company was not involved and it did not involve purchasing company stock. I've never read much negative about Vanguard, or excessive fees people mention.

The bottom line is homework, keeping on top of your own situation, there is no set rule as to what is right. The 401K plan worked great for me and I took full advantage because I could afford 20%. I worked at the same place for 33 yrs., had a great deal of vacation/holiday time so I traveled. I used the 401K so I would save money before my trips, which were on the pricey side traveling as a single person.
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Old 10-28-2009, 08:03 AM
 
204 posts, read 542,962 times
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Quote:
Originally Posted by susancruzs View Post
Personally, I always contributed the max allowed to my 401K when I was working, 10% before tax, and 10% after tax. If someone is young, has company match, they should take full advantage, keeping on top of the choices made within the 401K.

I was fortunate to have many, many choices within Vanguard plus had a great deal of information available. There's pros and cons to anything, I had friends where their 401K plans were just this side of scarey. Ours was upfront, above board, totally our own, the company was not involved and it did not involve purchasing company stock. I've never read much negative about Vanguard, or excessive fees people mention.

The bottom line is homework, keeping on top of your own situation, there is no set rule as to what is right. The 401K plan worked great for me and I took full advantage because I could afford 20%. I worked at the same place for 33 yrs., had a great deal of vacation/holiday time so I traveled. I used the 401K so I would save money before my trips, which were on the pricey side traveling as a single person.
that's wonderful and all....
but how about actually trying to answer the question of the thread if you're going to respond?
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Old 10-28-2009, 08:38 AM
 
72,120 posts, read 72,094,203 times
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there is no universal answere.... 1st problem is no one here can legally give you financial advice and 2nd there are so many variables even if we could that we cant answere it. we can only relay our own expieriences , what we did , and some general feelings about good financial principals....
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Old 10-28-2009, 08:41 AM
 
204 posts, read 542,962 times
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Quote:
Originally Posted by mathjak107 View Post
there is no universal answere.... 1st problem is no one here can legally give you financial advice and 2nd there are so many variables even if we could that we cant answere it. we can only relay our own expieriences , what we did , and some general feelings about good financial principals....
what are you talking about?
i know there is no "universal answer" and that's not what i'm asking for.
i'm asking "what would YOU do".....i'm not asking for legal advice, i'm not asking for a signed contract, etc. don't be silly.

if you don't know the answer or don't want to respond cause you think you'll get sued (how paranoid must one be!!!), then click elsewhere and stop being ridiculous!
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Old 10-28-2009, 02:53 PM
 
2,222 posts, read 9,495,674 times
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Quote:
Originally Posted by Susan815 View Post
I would advise her to build up her emergency fund to one year's take home income. With the jobless rate as high as it is, this is reasonable. Once that is accomplished, I suggest she contribute the max to her 401K--which is currently $16,500 per IRS regulations--so that she can take advantage of the tax break involved in doing so. Then, build up a non-emergency, non-retirement nest egg in either investments, bonds, cd's, whatever she feels more comfortable with.
I agree. This is what I would do.
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Old 10-28-2009, 03:36 PM
 
Location: Alaska
5,356 posts, read 16,375,371 times
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Quote:
Originally Posted by Susan815 View Post
I would advise her to build up her emergency fund to one year's take home income. With the jobless rate as high as it is, this is reasonable. Once that is accomplished, I suggest she contribute the max to her 401K--which is currently $16,500 per IRS regulations--so that she can take advantage of the tax break involved in doing so. Then, build up a non-emergency, non-retirement nest egg in either investments, bonds, cd's, whatever she feels more comfortable with.
If she is saving half her take home pay, I'd make no changes and just have her continue saving this amount for a year and then re-visit her options after her emergency fund is funded. Six months take home should last her for a year.

Actually, I'd take 2 years to fund it, using the other half as a vacation/car/anything else fund. At the end of two years, re-visit the retirement allocation, looking for places to put the half used for the emergency fund.
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Old 10-28-2009, 07:47 PM
 
Location: Two Rivers, Wisconsin
11,731 posts, read 11,574,271 times
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Why so testy, speaking of ridiculous! People give honest thoughts, answers but they aren't answering your question?

should she contribute more to her 401k or keep it as is?

I said I contributed the max and if someone is young, has company match, they should take full advantage. In terms of the question I answered it, take full advantage means contribute more!
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Old 10-29-2009, 03:20 AM
 
72,120 posts, read 72,094,203 times
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i myself have chosen not to respond any further.
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