Let's talk 401K's.....

[black4vcobra]

401k is a great way to see a magic trick happen for me. For example, I contribute every paycheck and when I get my quarterly statements, the balance is almost always the same or less than the previous balance. It's as if my money has just disappeared!

 

[oldmodman]

When I used to work for a company, before self employment, I had 15% taken out of my pay and put into the 401K. The company matched the first half 100% And wouldn't you know it. Right after I left the company they upped the matching to 125%.
Anyone that doesn't contribute the maximum is crazy. Especially if your company offers any amount of matching contribution.

 

[thepizz]

We use Edward Jones at my place. Since I'm Inc., I'm able to dollar match my contribution up to 10% of the salary I take. I also offer this to my full time employees.

 

[65fastback2+2]

Don't you mean the other way around?

I have my 401K through Vanguard. They have age based funds that gradually change as you progress to retirement. Their performance has never been very good though.

You're backwards. You take risks in your younger years as you'll have enough time left to work and recover vs. being older and being nearer to retirement.

This post is exactly why I go on car forums for financial advice. :rolling:

Gotta love Internet forum advice.

Honestly there could be some good advice, too. But the best advice was to talk about this to your company.

LMFAO, because people really want to take risks with their life savings when they're older and need it that money! Makes sense.

wtf??

Did you guys not read his post??????????????

Let me help you all.

His post is about starting a NEW 401k...as in, he doesnt probably currently have one.

Time is money.

If you have TIME (i.e. you're younger) you can take LESS rick, have more stable investments and come time to retire, you have your retirement.

If you are OLDER...you dont have time on your side, thus you need to INCREASE RISK to increase potential return. higher risk, higher return.

You dont need high risk/high return if you are younger because time will compensate for that.




didnt know this was gonna be so difficult for you all

 

[mysterio]

In real estate, the buzzword is location, location, location.

In investing, the buzzword is diversify, diversify, diversify.

If you spread your money out among different asset classes, such as stocks, bonds, real estate, domestic, foreign, etc. (I"m talking different mutual funds that are usually available in most 401k's), then in the long run, you should be fine. Be honest with yourself in assessing your risk tolerance, because as we've all seen/experienced, not every year is a good one.

Investing is not get rich quick, but to start in your 20's is a real good thing.

 

[VenomousDSG]

Did you guys not read his post??????????????

Let me help you all.

His post is about starting a NEW 401k...as in, he doesnt probably currently have one.

Time is money.

If you have TIME (i.e. you're younger) you can take LESS rick, have more stable investments and come time to retire, you have your retirement.

If you are OLDER...you dont have time on your side, thus you need to INCREASE RISK to increase potential return. higher risk, higher return.

You dont need high risk/high return if you are younger because time will compensate for that.




didnt know this was gonna be so difficult for you all

I am at a loss for words for your stupidity.

 

[LogiWorld123]

Did you guys not read his post??????????????

Let me help you all.

His post is about starting a NEW 401k...as in, he doesnt probably currently have one.

Time is money.

If you have TIME (i.e. you're younger) you can take LESS rick, have more stable investments and come time to retire, you have your retirement.

If you are OLDER...you dont have time on your side, thus you need to INCREASE RISK to increase potential return. higher risk, higher return.

You dont need high risk/high return if you are younger because time will compensate for that.




didnt know this was gonna be so difficult for you all

This is why we have Social Security.

 

[mysterio]

65fastback, I've been investing for over 20 years, and am licensed. You couldn't be more wrong, and as others have pointed out, you have things completely backwards.

NO client, in their late 50's / early 60's, has ever sat in my office and said, "I'm close to retirement, please put my money in the most aggressive things you have to offer."

I know tons of investors that have not recovered from the bottoming out of 2008, and if they're older, time is not on their side to recover. The rule of thumb is, the closer you are toward a goal, the more conservative you should be with your investment.

 

[65fastback2+2]

65fastback, I've been investing for over 20 years, and am licensed. You couldn't be more wrong, and as others have pointed out, you have things completely backwards.

NO client, in their late 50's / early 60's, has ever sat in my office and said, "I'm close to retirement, please put my money in the most aggressive things you have to offer."

I know tons of investors that have not recovered from the bottoming out of 2008, and if they're older, time is not on their side to recover. The rule of thumb is, the closer you are toward a goal, the more conservative you should be with your investment.

you are correct, no client after having invested for 30 years brings you their nest egg and says "invest aggressive".

we're talking about someone JUST NOW investing.

If someone comes in and says "I have zero retirement and I am 50" you have to invest aggressive if you even want to have a hope at catching up.

You need a higher return the later YOU START investing.

we're not talking about investing old nest eggs, we're talking about when you're old and havent invested anything

It's not too late, because if you start investing in your mid to late 40s, invest wisely, invest aggressively, get some good quality mutual funds or stocks, you can do very well for yourself. The earlier you start, the better it is, the more compounding you have for you. What's really dangerous is for people, say, in their 60s to start investing for the first time in aggressive things, because they don't have the time to recover if something goes wrong in the meantime.

Interview With Jordan Goodman | Betting On The Market | FRONTLINE | PBS

weird, a professional saying what I did. how odd.

 

[Satyr]

you are correct, no client after having invested for 30 years brings you their nest egg and says "invest aggressive".

we're talking about someone JUST NOW investing.

If someone comes in and says "I have zero retirement and I am 50" you have to invest aggressive if you even want to have a hope at catching up.

You need a higher return the later YOU START investing.

we're not talking about investing old nest eggs, we're talking about when you're old and havent invested anything



Interview With Jordan Goodman | Betting On The Market | FRONTLINE | PBS

weird, a professional saying what I did. how odd.

Umm...are you retarded? From your citation: "What's really dangerous is for people, say, in their 60s to start investing for the first time in aggressive things, because they don't have the time to recover if something goes wrong in the meantime."

 

[FijiStudios]

you are correct, no client after having invested for 30 years brings you their nest egg and says "invest aggressive".

we're talking about someone JUST NOW investing.

If someone comes in and says "I have zero retirement and I am 50" you have to invest aggressive if you even want to have a hope at catching up.

You need a higher return the later YOU START investing.

we're not talking about investing old nest eggs, we're talking about when you're old and havent invested anything



Interview With Jordan Goodman | Betting On The Market | FRONTLINE | PBS

weird, a professional saying what I did. how odd.

:lol::lol::lol::lol::lol:

 

[NO-BlkLightning2K]

You're backwards. You take risks in your younger years as you'll have enough time left to work and recover vs. being older and being nearer to retirement.

but if you're older don't you have to take more risk to make up for all the time that you weren't saving/investing for retirement?

kind of like when you go 0 for 4 on sunday and have to take it moneyline on the monday night parlay to make up for it.

 

[VenomousDSG]

but if you're older don't you have to take more risk to make up for all the time that you weren't saving/investing for retirement?

kind of like when you go 0 for 4 on sunday and have to take it moneyline on the monday night parlay to make up for it.

If you're older and low on money, why would you take high risks with what little money you have to try and get more? What if you lose that little money? Then you're completely screwed.

Just for a dumb example, lets say I have $50,000 in total debt and owe $1,000 in minimum payments on that debt for the month, and I only have $1,500 in my bank account. Am I going to go to the Casino and bet with what little money I have to try and pay more of that debt off? You don't take high risks when you have such little money.

 

[Ass Eyes]

Did you guys not read his post??????????????

Let me help you all.

His post is about starting a NEW 401k...as in, he doesnt probably currently have one.

Time is money.

If you have TIME (i.e. you're younger) you can take LESS rick, have more stable investments and come time to retire, you have your retirement.

If you are OLDER...you dont have time on your side, thus you need to INCREASE RISK to increase potential return. higher risk, higher return.

You dont need high risk/high return if you are younger because time will compensate for that.




didnt know this was gonna be so difficult for you all

:lol: There's too much to say and too little time to say it.

Whomever stumbles into this thread needs to completely ignore this guy.

 

[Matts00GT]

but if you're older don't you have to take more risk to make up for all the time that you weren't saving/investing for retirement?

kind of like when you go 0 for 4 on sunday and have to take it moneyline on the monday night parlay to make up for it.

If you're older and low on money, why would you take high risks with what little money you have to try and get more? What if you lose that little money? Then you're completely screwed.

Just for a dumb example, lets say I have $50,000 in total debt and owe $1,000 in minimum payments on that debt for the month, and I only have $1,500 in my bank account. Am I going to go to the Casino and bet with what little money I have to try and pay more of that debt off? You don't take high risks when you have such little money.

He was being sarcastic...

 

[mysterio]

If you're older and low on money, why would you take high risks with what little money you have to try and get more? What if you lose that little money? Then you're completely screwed.

I have had lots of clients between ages 60-65, as an age range example. The general consensus of their mindset can be summed up as: safety, safety, safety. That is just the way it *generally* goes for a huge percentage of people nearing retirement.

Consider their experiences: they have seen it all. They have seen wild market fluctuations, market crashes, corrections, seen their 401k become a 201k (stupid joke, I know), and seen what this industry calls 'the lost decade' of 2000-2010. They rightfully don't want to take any more chances with their retirement money, and they're looking for safe products to invest in.

And I can't blame them; I've seen the fear in their eyes, especially during an ugly year like 2008. Luckily, the industry is always in flux, and new products emerge to address concerns.

The younger crowd, however, is not immune to all the hype, and many of them are skittish on investing. But their general rule of thumb is that time is on their side, and way more young people are open to investing ideas than their older counterparts. And that's normal.

 

[01Jes]

Now I know how to invest,....Yes!!!

 

[Coiled03]

Anyone that doesn't contribute the maximum is crazy. Especially if your company offers any amount of matching contribution.

Exactly. Not contributing to the company match limit is like turning down free money. I don't know why anyone would fail to invest at least that much.

 

[Dr. Gonzo]

^^^
Maybe some people cannot afford to put a large percentage of their income into a retirement fund? :shrug:

 

[03Sssnake]

^^^
Maybe some people cannot afford to put a large percentage of their income into a retirement fund? :shrug:

not really that hard on finances, we are talking pre-tax money that would otherwise end up with uncle sam. My company matched up to 4% and I would usually put in around 5-6%. I dialed it back to the company match when things went into the shitter though.