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Okay I made my decision, after careful thinking. I'm not going to expect to depend 100% on Social Security. I will probably increase my contributions from 10% to 13%, plus the 4% company match, for a total of 17% contributed. That's $1,066 per month contributed to the 401k. I hope that's good enough. Right now, the 401k has $12K in it, and I'm 30 years old and plan to retire at 67 (as of now). But if things are favorable over the years, then maybe I'll retire early!
I am assuming 0% growth in my 401k, just to be on the more conservative side of things (even though I'm a liberal in real life).
What happens if your 401k isn't there when you need it? I wouldn't put more money into it
Also will you have a house payment? Will your cars be paid for? If so, food is only 250 a month, that leaves $750 which should easily adequate enough to meet basic needs. If you want to be married, I'd ensure it is doubled (at the very least) that with your 401k money should be plenty.
If your interests are not what is free, nature, walks, cycling, friends, etc.. and very materialistic, like you need to eat out constanty, drive fancy cars, go to the movies all the time, etc..you'll have to accomodate to whatever level the materialism is. If that makes sense..
I wouldn't waste time panicking, you're doing great
Also plan your Social Security out correctly, most likely that means if it's the typical sinereo... taking your SS late and your wife taking her spousal social security (as the lower wage earner, if it falls like that) earlier than full retirement age. This is due to the survivors benefits.
Correct SS planning with Social Security and your 401K and some stashing of actual cash money maybe,and living modestly to some degree if needed, you will be more than fine with the road your on
And, for that matter, how do we know we'll actually receive Social Security, or, at the very least, that it won't be reduced? Some say that is effectively already happening as a result of perceived underestimating of the inflation rate, which reduces the annual raises SS recipients receive.
What happens if your 401k isn't there when you need it? I wouldn't put more money into it
Also will you have a house payment? Will your cars be paid for? If so, food is only 250 a month, that leaves $750 which should easily adequate enough to meet basic needs. If you want to be married, I'd ensure it is doubled (at the very least) that with your 401k money should be plenty.
If your interests are not what is free, nature, walks, cycling, friends, etc.. and very materialistic, like you need to eat out constanty, drive fancy cars, go to the movies all the time, etc..you'll have to accomodate to whatever level the materialism is. If that makes sense..
I wouldn't waste time panicking, you're doing great
Also plan your Social Security out correctly, most likely that means if it's the typical sinereo... taking your SS late and your wife taking her spousal social security (as the lower wage earner, if it falls like that) earlier than full retirement age. This is due to the survivors benefits.
Correct SS planning with Social Security and your 401K and some stashing of actual cash money maybe,and living modestly to some degree if needed, you will be more than fine with the road your on
.
401k not there?
long term in history there isn't a point 20 years later diversified funds would have not been way higher. not in 146 years.
in fact most time frames even if 30-40% evaporated you would still be left higher than had you not invested .
Wait a minute...so now, you all are saying that not only should I not count on Social Security, but that I also shouldn't count on my 401k??? What the hell am I supposed to do then??
I mean, nothing is guaranteed at the end of the day. It's all risk, whether it's stock market risk or risk of changes (or lack thereof) in government policy.
Unless you are really poor I don't get why anyone would want to rely on SS alone. Even saving $50 a month for 40 years puts you at about 130k (assuming 7% growth). That right there could provide you with another 8-10k/yr for about 15-20 years.
Which part, the fact that it's possible the 401K may not be there and to diversify the money instead? My opinion was to continue contributing at the same rate//// not to increa$e it as was the question
Do you know what happened regarding the Banks during the Great Depression? People lost it all, everything they saved for.
Nothing is set in stone, so I feel it's best he continue contributing to this 401k as he has... but also planning to stash some money and maybe utilize savvy planning regarding social security. JMHO. Just remember than any avenue for revenue can fail, so plan on having 3-4 just in case.
Last edited by CaliforniaGal1; 10-29-2014 at 06:29 PM..
long term in history there isn't a point 20 years later diversified funds would have not been way higher. not in 146 years.
in fact most time frames even if 30-40% evaporated you would still be left higher than had you not invested .
you want to bet against the house on that one?
I don't want to bet on anything. That's the point.
He asked if he should contribute more money to his 401K, I stated no. Just my opinion. It appeared the company wasn't matching all he was contributing to anyhow. Some companies only contribute 3%, as with my Son but it will increase 1% each year he remains employed...until it arrives at 5%
Right now, regarding my sons 401k, even with the 401k matching, he's actually lost $3.
if he lost money it had to be something he did not the markets. you would be hard pressed to find any diversified funds not up no matter what time frame you pick.
the only way he could have lost money is bailing out at the wrong time
if he lost money it had to be something he did not the markets. you would be hard pressed to find any diversified funds not up no matter what time frame you pick.
the only way he could have lost money is bailing out at the wrong time
The world is getting worse, anything could collapse as it did in the Great Depression. You have rosy glasses on, which might be ok and might not. The problem is we just don't know.
But to overly worry about it, well it doesn't help and this kid seems to be doing quite well in my opinion.
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