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Old 01-15-2020, 12:27 PM
 
Location: So Cal - Orange County
219 posts, read 133,618 times
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I would suggest to contribute as much as you can up to the allowed max. My wife and I contribute the max each year, so 19k last year and it will be 19.5k this year.
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Old 01-16-2020, 01:32 PM
 
Location: Ontario, NY
2,827 posts, read 6,428,424 times
Reputation: 2937
Quote:
Originally Posted by teqp View Post
I would suggest to contribute as much as you can up to the allowed max. My wife and I contribute the max each year, so 19k last year and it will be 19.5k this year.
The max each or is that combined? It really puts a dent in your paycheck, no matter how much you earning to max it out.

I was a 20% last year, but recently backup off to 6% because after purchasing a house in March, needed the extra money to do some remodeling. I plan on increasing it back to 20% before the end of 2020. Even at this rate, I will not hit the cap of $19,500 this year, let alone the over 50 catch up cap of $25,500.
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Old 01-17-2020, 09:51 AM
 
Location: Chandler, AZ
2,793 posts, read 1,409,326 times
Reputation: 6648
Quote:
Originally Posted by jasperhobbs View Post
And then live in van down by the river and eat tv dinners. Good advice but not many can contribute that much.
OH NO, not everyone can see 100% success so we should all just quit!

What's your specific advice for someone who can't contribute the max, or whatever figure you think is "enough"?
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Old 01-17-2020, 11:50 AM
 
2,774 posts, read 2,267,762 times
Reputation: 6758
Quote:
Originally Posted by jnojr View Post
OH NO, not everyone can see 100% success so we should all just quit!

What's your specific advice for someone who can't contribute the max, or whatever figure you think is "enough"?
The minimum you contribute is what the company will match. Obviously, the higher the percentage the bigger the nest egg will be. Everyone has to figure out what they can afford to contribute and still live.
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Old 01-17-2020, 12:48 PM
 
Location: Las Vegas & San Diego
1,131 posts, read 198,981 times
Reputation: 1040
Always contribute to max matching because that is essentially free money. The ideal IS the maximum allowed as early as possible - if can swing it. It can grow a lot and easy be 7 figures when retire.
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Old 01-17-2020, 02:23 PM
 
Location: Chandler, AZ
2,793 posts, read 1,409,326 times
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Quote:
Originally Posted by ddeemo View Post
Always contribute to max matching because that is essentially free money.
And a rate of return that can't be beat unless you're in the .01%!
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Old 01-17-2020, 02:49 PM
 
19,849 posts, read 14,455,443 times
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Quote:
Originally Posted by ddeemo View Post
Always contribute to max matching because that is essentially free money. The ideal IS the maximum allowed as early as possible - if can swing it. It can grow a lot and easy be 7 figures when retire.
It’s much worse than free money. It’s giving up part of your pay check back to the company, it’s not free but you’d be giving back to the company otherwise
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Old 01-17-2020, 08:22 PM
 
Location: Las Vegas & San Diego
1,131 posts, read 198,981 times
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Quote:
Originally Posted by jnojr View Post
And a rate of return that can't be beat unless you're in the .01%!
I don't know any place else you can get 100% rate of return with no risk - even the 0.01% would take that.
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Old 01-18-2020, 10:59 AM
 
Location: Chandler, AZ
2,793 posts, read 1,409,326 times
Reputation: 6648
Quote:
Originally Posted by Lowexpectations View Post
It’s much worse than free money. It’s giving up part of your pay check back to the company, it’s not free but you’d be giving back to the company otherwise
???

You very badly need to look up the definition of a 401(k). You literally have no idea what it is.
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Old 01-18-2020, 11:03 AM
 
Location: Chandler, AZ
2,793 posts, read 1,409,326 times
Reputation: 6648
Quote:
Originally Posted by ddeemo View Post
I don't know any place else you can get 100% rate of return with no risk - even the 0.01% would take that.
Since the "free" money is invested and hence subject to the vagaries of the markets, it's just part of your annualized return... it improves it, but is only a 100% return for those few matched dollars and only until a change is posted.

As for the .01%, I was just talking to a friend at dinner last night. He engages in various forms of arbitrage and can see 10X returns at times. Of course, he's also at hideous risk, and you have to put up tens or hundreds of thousands of dollars. He can make a mint, or lose it all. In that world, a mere 100% return is a piffle
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