401k

[grizzmoose]

I have no idea how many people will answer this, but I thought Id give it a shot. Im almost 35 and have been contributing to a 401k for a little while now, but it seems like it grows so dang slow. I feel like Im way behind the curve, but I really have no idea. What dollar amount would you say a guy should have at 35-40 in his 401k/savings to have a decent retirement?

 

[grizzmoose]

I have no idea how many people will answer this, but I thought Id give it a shot. Im almost 35 and have been contributing to a 401k for a little while now, but it seems like it grows so dang slow. I feel like Im way behind the curve, but I really have no idea. What dollar amount would you say a guy should have at 35-40 in his 401k/savings to have a decent retirement?

 

[utahbigbull]

In our last 401k enrolment meeting a few months ago, they suggested that between 401k and other retirement plans (assuming you start in your early 20's) is this

age 20-30 - 10% of your yearly income per year
age 30-40 - 15% of your yearly income per year
age 40-50 - 20% of your yearly income per year
age 50-60 - 25% of your yearly income per year

Now I don't know about you, but being poor white trash makes it a bit difficult for me to be putting those big a chunks aside every year when the three rugrats are draining all I have now.
I am 36 and my 401k has been getting around 4% to 6% a year for 12 years and it seems like I could have been recyling pop cans this long and have more with the way the market wiped it out.

 

[utahbigbull]

In our last 401k enrolment meeting a few months ago, they suggested that between 401k and other retirement plans (assuming you start in your early 20's) is this

age 20-30 - 10% of your yearly income per year
age 30-40 - 15% of your yearly income per year
age 40-50 - 20% of your yearly income per year
age 50-60 - 25% of your yearly income per year

Now I don't know about you, but being poor white trash makes it a bit difficult for me to be putting those big a chunks aside every year when the three rugrats are draining all I have now.
I am 36 and my 401k has been getting around 4% to 6% a year for 12 years and it seems like I could have been recyling pop cans this long and have more with the way the market wiped it out.

 

[TerynItUp]

I am 24 and have been contributing 10% of every check (pre-tax) I receive to my 401k for over two years since I graduated and started working. I was under the assumption that 16% was the max you can contribute to a 401k but I could be wrong. Either way, paying yourself first is a must and you will be glad you did when you are ready to retire. A plan is very important, look into where your money is being held and talk with someone who has experience in mutual funds and ask what funds are doing well right now. All a 401k is, is a blanket over your money to protect it from taxes right now. It is up to you where you invest your contributions to it.

Hunt Hard. Shoot Straight. Kill Clean. Apologize to No One.

 

[TerynItUp]

I am 24 and have been contributing 10% of every check (pre-tax) I receive to my 401k for over two years since I graduated and started working. I was under the assumption that 16% was the max you can contribute to a 401k but I could be wrong. Either way, paying yourself first is a must and you will be glad you did when you are ready to retire. A plan is very important, look into where your money is being held and talk with someone who has experience in mutual funds and ask what funds are doing well right now. All a 401k is, is a blanket over your money to protect it from taxes right now. It is up to you where you invest your contributions to it.

Hunt Hard. Shoot Straight. Kill Clean. Apologize to No One.

 

[NVBighorn]

After the collapse of the financial market my 401 was reclassified to a 201.

Fear not, somebody will come along and offer you a business card here soon. I just know it.

 

[NVBighorn]

After the collapse of the financial market my 401 was reclassified to a 201.

Fear not, somebody will come along and offer you a business card here soon. I just know it.

 

[smitty]

I said F the 401k, I will not put my future in the hands of some company that plays with my money like it's some kind of game. I don't feel at all comfortable with my retirement just being some number on some computer screen.

I've changed almost everything I have to putting my efforts into buying investment property, which is getting really hard because the banks won't lend unless you have a ton of cash to put down. The government has the system so screwed up I'm afraid that the average guy may be out of luck. I've got an invention that we are in the proces of getting produced and on the market, hoping to hit a grand slam so that I do have the capital to invest.

 

[smitty]

I said F the 401k, I will not put my future in the hands of some company that plays with my money like it's some kind of game. I don't feel at all comfortable with my retirement just being some number on some computer screen.

I've changed almost everything I have to putting my efforts into buying investment property, which is getting really hard because the banks won't lend unless you have a ton of cash to put down. The government has the system so screwed up I'm afraid that the average guy may be out of luck. I've got an invention that we are in the proces of getting produced and on the market, hoping to hit a grand slam so that I do have the capital to invest.

 

[grizzmoose]

Those are some pretty high percentages! Did they suggest that percentage should come wholly from you, or does that include a company match if there is one? My employer is pretty generous with the 401k program. I donate 6% which my company matches, so I guess Im at 12%. I feel like that is pretty decent, but I feel like my number should be higher if I am ever going to be able to retire.

 

[grizzmoose]

Those are some pretty high percentages! Did they suggest that percentage should come wholly from you, or does that include a company match if there is one? My employer is pretty generous with the 401k program. I donate 6% which my company matches, so I guess Im at 12%. I feel like that is pretty decent, but I feel like my number should be higher if I am ever going to be able to retire.

 

[foundation]

Mine is a 457 , which is like a 401 . I do 12 % and my employer does 3 % . I have been doing it for 19 years , but looking at the balance I know I would be eating lots of top o ramon if I retire next year when I'm eligible . I'm planning to keep working and see if I can bump up my percantage .

 

[foundation]

Mine is a 457 , which is like a 401 . I do 12 % and my employer does 3 % . I have been doing it for 19 years , but looking at the balance I know I would be eating lots of top o ramon if I retire next year when I'm eligible . I'm planning to keep working and see if I can bump up my percantage .

 

[mntman]

grizzmoose, it depends on you. What are your goals for retirement, ie... golf, buying a henries tag every year, sitting on the porch, traveling etc..... plans for house (down size, up grade?????) all those types of questions. Everyone is different when they retire. The range is quite drastic on money requriements of their working income. It could be as little as 50% or be 100% or higher than working incomes.
Once you figure that out, that will help you determine your amount of money needed upon retirement. From that point a smart advisor would say the average gain long term is 7-7.5% per year. Then depending on the amount of time you have till your retirement age you will get a guesstimation on the amount of money needed to be invested each month to satisfy your retirement. remember nothing is guranteed though.

Just a helpful tip, only invest up to the % that your company matches on your 401k. Once you reach that start your own IRA/ROTH IRA, you have way more options for investments, and considerably more control over them. If your company does not match in your 401k, my recomendation would not to invest in them in MOST situations.


Mntman

"Hunting is where you prove yourself"

 

[mntman]

grizzmoose, it depends on you. What are your goals for retirement, ie... golf, buying a henries tag every year, sitting on the porch, traveling etc..... plans for house (down size, up grade?????) all those types of questions. Everyone is different when they retire. The range is quite drastic on money requriements of their working income. It could be as little as 50% or be 100% or higher than working incomes.
Once you figure that out, that will help you determine your amount of money needed upon retirement. From that point a smart advisor would say the average gain long term is 7-7.5% per year. Then depending on the amount of time you have till your retirement age you will get a guesstimation on the amount of money needed to be invested each month to satisfy your retirement. remember nothing is guranteed though.

Just a helpful tip, only invest up to the % that your company matches on your 401k. Once you reach that start your own IRA/ROTH IRA, you have way more options for investments, and considerably more control over them. If your company does not match in your 401k, my recomendation would not to invest in them in MOST situations.


Mntman

"Hunting is where you prove yourself"

 

[30inchbuck]

My company is great they match 10%. As Mntman said only put in what a company will match. Then an IRA. It takes some time but IRA's can make a very good ROI.

I also was a little lucky right before the crash in 08, the 401K investment firm took all my money out of the markets and put them in a money market account. while others were losing big time. Mine was stable. Then when the DOW was around 6K I put it all back in. Pretty much doubled my money over that time. I am still behind becasue I did not start early in life. But doing some catching up now. With current job of 8 years I now have 2.5 times my annual salary in 401K.




Outside of a horse is good for the inside of a man.

 

[30inchbuck]

My company is great they match 10%. As Mntman said only put in what a company will match. Then an IRA. It takes some time but IRA's can make a very good ROI.

I also was a little lucky right before the crash in 08, the 401K investment firm took all my money out of the markets and put them in a money market account. while others were losing big time. Mine was stable. Then when the DOW was around 6K I put it all back in. Pretty much doubled my money over that time. I am still behind becasue I did not start early in life. But doing some catching up now. With current job of 8 years I now have 2.5 times my annual salary in 401K.




Outside of a horse is good for the inside of a man.

 

[utahbigbull]

Grizzmoose, those numbers are between what you and your employer contribute and any other retirement plan contributions may total.

 

[utahbigbull]

Grizzmoose, those numbers are between what you and your employer contribute and any other retirement plan contributions may total.

 

[Sniper1]

Putting 10% in and job matches 6 I think. Hopin in 30 years or so to have a couple 000's on the end of whatever i got in there. But then again when that day comes it still wont be enough

 

[Sniper1]

Putting 10% in and job matches 6 I think. Hopin in 30 years or so to have a couple 000's on the end of whatever i got in there. But then again when that day comes it still wont be enough

 

[slamdunk]

LAST EDITED ON Jul-15-11 AT 11:06AM (MST)[p]I worked for Fluke Corporation for 11 years and dumped the maximum amount in, plus they matched up to 6%.
In those 11 years it has grown to 100K.....i'm pretty tickled about that
Now i'm self employed and need to figure out what to do with it to keep it growing when i'm not contributing to it.....any advice??

 

[slamdunk]

LAST EDITED ON Jul-15-11 AT 11:06AM (MST)[p]I worked for Fluke Corporation for 11 years and dumped the maximum amount in, plus they matched up to 6%.
In those 11 years it has grown to 100K.....i'm pretty tickled about that
Now i'm self employed and need to figure out what to do with it to keep it growing when i'm not contributing to it.....any advice??

 

[mntman]

You can convert it to a IRA or Roth IRA. I am guessing that it is a traditional 401k though due to the age of it. So you it would transfer to a tradtional IRA easy enough.
As far as it growing, you just need to keep it invested in places that will meet your goals, risk you are willing to take and the amount of time you have till you plan on using it.

slamdunk, being self employed there are options out there for you to contribute also in tax incentive retirement plans. Your options depend on if you have any employees, how many and full or part time.


Also for EVERYONE reading this. When you select your 401k options, ask for the ROTH 401k, same for ROTH IRA. For the most part, the majority of people get better benefits from the ROTH versions.

Simple explanation;
Traditional IRA/401k- put money in prior to taxes being taken out. That means you pay taxes on money when you take it out down the road. You put in $50k of tax free money but it grows to $150k, now you pay taxes on the $150k :-(

ROTH IRA/401k - put money in after taxes, take money out tax free (meeting requirements which are easy). Put $50k in after taxes, it grows to $150K. When you take out $150k EVERY PENNY is yours, not one goes to taxes. (as long as you meet requirements).

Mntman

"Hunting is where you prove yourself"

 

[mntman]

You can convert it to a IRA or Roth IRA. I am guessing that it is a traditional 401k though due to the age of it. So you it would transfer to a tradtional IRA easy enough.
As far as it growing, you just need to keep it invested in places that will meet your goals, risk you are willing to take and the amount of time you have till you plan on using it.

slamdunk, being self employed there are options out there for you to contribute also in tax incentive retirement plans. Your options depend on if you have any employees, how many and full or part time.


Also for EVERYONE reading this. When you select your 401k options, ask for the ROTH 401k, same for ROTH IRA. For the most part, the majority of people get better benefits from the ROTH versions.

Simple explanation;
Traditional IRA/401k- put money in prior to taxes being taken out. That means you pay taxes on money when you take it out down the road. You put in $50k of tax free money but it grows to $150k, now you pay taxes on the $150k :-(

ROTH IRA/401k - put money in after taxes, take money out tax free (meeting requirements which are easy). Put $50k in after taxes, it grows to $150K. When you take out $150k EVERY PENNY is yours, not one goes to taxes. (as long as you meet requirements).

Mntman

"Hunting is where you prove yourself"

 

[LoveBigRacks]

+1 to MtnMan's comments above. Definitely take advantage of the employer match on the 401K and contribute whatever you need to in order to get the max match from your employer, it's free money and if nothing else will help cover the taxes when you pull it out. Beyond that go with the ROTH IRA, there is nothing more certain than the fact that taxes will go up and be higher when you retire than they are now. You're MUCH better off depositing post-tax money now than deferring the taxes until retirement.

LBR

 

[LoveBigRacks]

+1 to MtnMan's comments above. Definitely take advantage of the employer match on the 401K and contribute whatever you need to in order to get the max match from your employer, it's free money and if nothing else will help cover the taxes when you pull it out. Beyond that go with the ROTH IRA, there is nothing more certain than the fact that taxes will go up and be higher when you retire than they are now. You're MUCH better off depositing post-tax money now than deferring the taxes until retirement.

LBR

 

[slickrock]

I don't know what to tell you Grizz. I do know when they 1st came out with 401K's the companies were saying if you just put in 6% for 30 years you'll have a million or more. Well bullshit! In my case I have about what I have put in maybe less. A few years ago I put most of my stuff with a financial planner guy. He ask what are your goals? I said capital preservation! So far it has worked out ok. PM me if you are interested in talking to someone that does this for a living.

Slick

"The Road goes on forever & the Party never Ends"

 

[slickrock]

I don't know what to tell you Grizz. I do know when they 1st came out with 401K's the companies were saying if you just put in 6% for 30 years you'll have a million or more. Well bullshit! In my case I have about what I have put in maybe less. A few years ago I put most of my stuff with a financial planner guy. He ask what are your goals? I said capital preservation! So far it has worked out ok. PM me if you are interested in talking to someone that does this for a living.

Slick

"The Road goes on forever & the Party never Ends"