401k starts today! What to do?

[syntheticGT]

I have been at my job for a year and am now eligible for teh 401k.

I am putting in 6% which the company matches .50 for every dollar up to 6%.

What info do you guys need from me to help me start some goot investing?

:thumb:

[Kohinoor]

how long until youre vested? do you see yourself working for them for a long time?

[zerinVR6]

My 401k has been rocking in the emerging market funds. Look at funds that concentrate on Asian markets as they are doing really well right now. Obviously, you need to diversify a bit, but as young as you are it doesn't hurt to be aggressive either.

Who is managing your fund?

[syntheticGT]

how long until youre vested? do you see yourself working for them for a long time?

6 years. And yes...I can see myself here for a long long time. :thumb:

My 401k has been rocking in the emerging market funds. Look at funds that concentrate on Asian markets as they are doing really well right now. Obviously, you need to diversify a bit, but as young as you are it doesn't hurt to be aggressive either.

Who is managing your fund?

JP Morgan

[zerinVR6]

Check these out:

JAEAX
JPAIX
JFAMX



6 years. And yes...I can see myself here for a long long time. :thumb:



JP Morgan

[syntheticGT]

Thanks man...I will look into those.

I am supposed to get my login information here in a bit so I can start.

w000000000!

[zerinVR6]

Oh yeah, don't take any advice in here without doing your OWN research and due dilligence...our advice is given without warranty, written or implied :)

[syntheticGT]

Oh I understand the liability thing...I wouldn't put money into ANYTHING without much research.

MUCH!

lol :look:

[Jeebus]

Does it make any sense to start a 401k while still in college and at a job you really dont see yourself at more than just a couple more yrs? Or would it be better to just wait til you have a career or working somewhere you plan to be a long period of time?


Not trying to steal your thread, just didnt wanna make a new one.

[syntheticGT]

Does it make any sense to start a 401k while still in college and at a job you really dont see yourself at more than just a couple more yrs? Or would it be better to just wait til you have a career or working somewhere you plan to be a long period of time?


Not trying to steal your thread, just didnt wanna make a new one.

no bigs...its a good question.

I would think to wait until you are somewhere you want to be...thats what I did.

I am sure others will chime in.

[Jeebus]

How old are some of ya'll when ya'll did start your 401k? I think im still young at 21 for that, but they do say its never too early to save for it. My friend here is the same age and has 401k but I think he will be making a career with the company so that makes sense for him. Plus they match 100% up to 4% I beleive.

[chris_smith_07]

I belive that you can roll it over to your new company. So I really believe that it does not matter. I am sure someone will come along with more info.

My company only matches .5% up to 2%. So I put in 4% so I get the full 2% my company gives.

[mtran]

^ 401k are like bank accounts. just because your not with a particular employer, doesnt mean that 401k will disappear. you can still contribute to it. the only thing is if your no longer employed there and your new employer doesnt use the same retirement company, you wont get any match funds. i think someone explained it that way to me. someone clarify.

[Ponch]

401ks can be rolled over to your new employer. Its wise to invest into your 401k anywhere you are employed if its offered.

With social security funds expected to be exhausted by 2017 you need to start investing in your future now. Like i said, if 401k is offered...take advantage of it. Dont worry about your expected length of employment as most companies now offer 401k plans.

[speedtek]

damn a year to get into 401k? i had to be employed for 3 months. and they match dollar for dollar up to 5%

[Pr3Lud3PLaYa]

I was enrolled and ready for my 401k from the start of employment. My employer started matching my contributions up to 5% after 6 months though. I don't plan on staying with my current employer longer but luckily, it can roll over to any new employer.

[winc281]

Does it make any sense to start a 401k while still in college and at a job you really dont see yourself at more than just a couple more yrs? Or would it be better to just wait til you have a career or working somewhere you plan to be a long period of time?


Not trying to steal your thread, just didnt wanna make a new one.

doesnt hurt..plus you could always transfer it (at least with ours you can)

[yungintl]

anyone use wachovia for their 401k provider?

[SuperSpud]

i have all of mine invested in a life cycle fund. . they are focused on your age group/how long until you retire. the younger you are/the longer you have till retirement the more agressively invested it is... as you get older it gets invested more conservatively.

[yungintl]

i have all of mine invested in a life cycle fund. . they are focused on your age group/how long until you retire. the younger you are/the longer you have till retirement the more agressively invested it is... as you get older it gets invested more conservatively.

I've seen that but it seems to me if you know what your doing, when your younger you can run riskier investments than a life cycle fund would and have a potential on greater return. And if they tank, its not like gonna use the money today anyway...

[SuperSpud]

you're absolutely right, if you want to be on top of your investements/401k there are plenty of things yuo can do that will bring you a higher yield than a simple lifecyle plan. however im more of a "set it up and forget about it" type of guy when it comes to my 401k. i will change which lifecycle i have it invested in as i get older but for now i'll just let it run its course. once i get some more money in my savings account (i have a select amount of my paycheck that gets deposited directly to my savings account each paycheck) then i will take it out and open up a CD or possibly invest it in something. with THAT money i will watch more closely and select special things to invest in, but for my 401k, set it and forget it... and when i retire enjoy it. I will have seperate money to invest as i please soon enough, my 401k will be my fall back/added bonus once im older

[Speed_N_Blood]

401k is a ripoff! i have it and just recently stopped it! Its like this if your young and not making 50grand and up a year dont do it.cause i see it like this, when your young you need all the money you make from a check and cant really afford to have 6-10percent taken out of a check. Plus you never know when a company will go bankrupt and you will lose all of your money. Also the only way you can get your money is to quit the company and then you get taxed on your own money so you are better off putting it in a savings account and then when you get a couple thousand put it in a CD at a bank and enjoy the profits!!!

[SuperSpud]

401k is a ripoff! i have it and just recently stopped it! Its like this if your young and not making 50grand and up a year dont do it.cause i see it like this, when your young you need all the money you make from a check and cant really afford to have 6-10percent taken out of a check. Plus you never know when a company will go bankrupt and you will lose all of your money. Also the only way you can get your money is to quit the company and then you get taxed on your own money so you are better off putting it in a savings account and then when you get a couple thousand put it in a CD at a bank and enjoy the profits!!!

you shouldnt really post things you dont know too much about....

you wont find a CD that will pay you as much as a 401k will first of all... you put in $6 and the company gives you an additional $3 free. so you're getting $9 for the price of $6, not bad. also, its pre tax, so the money you're GETTING, really isnt costing you all that much in the big picture... say you're putting in $100 pre tax, you wont see a $100 deduction from your paycheck, it will most likely be significantly less.

also, you shouldnt be working for a company that you feel might go bankrupt.. so if thats the case, dont bother worrying about 401k or posting about it in this forum, go out and find yourself a better job....

[SuperSpud]

also you talk about being young and working check to check (like most of us are).... then you CERTAINLY dont want to tie up your money in a CD.... if you have it in the 401k you can access that / take out some if you need it, if you invest in a CD most of the time you have to wait for it to mature or you will be charged to cancel it and access the money

[grnlude97]

you shouldnt really post things you dont know too much about....

you wont find a CD that will pay you as much as a 401k will first of all... you put in $6 and the company gives you an additional $3 free. so you're getting $9 for the price of $6, not bad. also, its pre tax, so the money you're GETTING, really isnt costing you all that much in the big picture... say you're putting in $100 pre tax, you wont see a $100 deduction from your paycheck, it will most likely be significantly less.

also, you shouldnt be working for a company that you feel might go bankrupt.. so if thats the case, dont bother worrying about 401k or posting about it in this forum, go out and find yourself a better job....

I agree with this post. It is extremely silly not to invest in your 401k under almost any circumstance. With the company match you really have to lose your shirt to get a bad return. When you change job you no longer get the match unless it's the same provider however the money continues to grow tax free until retirement. In addition, there are some tax free ways to take some money out such as for a first home (under certain conditions). Either way, just do it!

Daniel :)

[Speed_N_Blood]

you shouldnt really post things you dont know too much about....

you wont find a CD that will pay you as much as a 401k will first of all... you put in $6 and the company gives you an additional $3 free. so you're getting $9 for the price of $6, not bad. also, its pre tax, so the money you're GETTING, really isnt costing you all that much in the big picture... say you're putting in $100 pre tax, you wont see a $100 deduction from your paycheck, it will most likely be significantly less.

also, you shouldnt be working for a company that you feel might go bankrupt.. so if thats the case, dont bother worrying about 401k or posting about it in this forum, go out and find yourself a better job....

well I have found cd's at 5.37 percent intrest rate and $100 coming from your check you do notice the difference. and im not saying im working for a company that might go bankrupt I was just warning people.

also you talk about being young and working check to check (like most of us are).... then you CERTAINLY dont want to tie up your money in a CD.... if you have it in the 401k you can access that / take out some if you need it, if you invest in a CD most of the time you have to wait for it to mature or you will be charged to cancel it and access the money

a cd can last from 1-6 months with somewhere between 4-5.37% intrest rate. so its really not a bad idea and you dont get taxed either. Also when you borrow against your 401k you have to pay interest to yourself. and you can only borrow aginst half of it and can take anywhere between 1-6 months for that to happen.

I agree with this post. It is extremely silly not to invest in your 401k under almost any circumstance. With the company match you really have to lose your shirt to get a bad return. When you change job you no longer get the match unless it's the same provider however the money continues to grow tax free until retirement. In addition, there are some tax free ways to take some money out such as for a first home (under certain conditions). Either way, just do it!

Daniel :)

for a company to match your money you have to be "vested" into the company which can take anywhere from 6months-3 years or more.

[syntheticGT]

401k is a ripoff! i have it and just recently stopped it! Its like this if your young and not making 50grand and up a year dont do it.cause i see it like this, when your young you need all the money you make from a check and cant really afford to have 6-10percent taken out of a check. Plus you never know when a company will go bankrupt and you will lose all of your money. Also the only way you can get your money is to quit the company and then you get taxed on your own money so you are better off putting it in a savings account and then when you get a couple thousand put it in a CD at a bank and enjoy the profits!!!

You really have no idea what you are talking about.

Also, even though most of us live check to check, you shouldnt really be living past your means. If you are then it is entirely your own fault.

People need to save for the future and a 401k helps. I work in the auto parts industry and I am fairly certain its not going anywhere soon.

Putting money in Pre-tax plus getting a percent match from the employer is just like being able to save money someone is giving you for free.

:)

[Flores]

SpeedNBlood, my 401k did 35% over the last 2 years. Please show me a CD that comes anywhere close to that.

Employer matching funds into your 401k are FREE MONEY. It's a GIFT from your employer! (I'm lucky, my employer matches 6%! One of the reasons it's hard for me to find a better job) Your money AND your free money are what is making interest and growing! You cant seriously expect anyone to believe that earning less interest on a smaller amount makes the least bit of sense, can you?

CDs are a way for someone else to make 35% on your money, and only give you a tiny piece of the profit.

Do you feel ripped off yet?

How does anyone ever expect to stop living check to check if they don't save? It really is that simple: Save 10% of what you earn.

[Ponch]

i think speed_N_blood needs to stop posting regarding 401k. Its obvious he doesnt have an understanding of how 401k works.

If your living pay check to pay check then you a) Need a better job b) Stop spending so much

Let me put out a hypothetical example out here for you to understand:

John is saving four percent of his annual income, $67 per month. His contribution is deducted from gross wages before being taxed. This reduces his current taxable income. Although John is saving $67, his take-home pay is reduced by only $57 as a result of his tax savings. In other words, it cost him only $57 to save $67.

Johns annual income: $20,000 (single)

..................................No Savings........... Savings
Gross Monthly Pay...............$1667..................$1667
Monthly contribution................$0.................... ..$67
Taxable Income...................$1667..................$1 600
Estimated Taxes....................$228...................$2 18
Take home pay....................$1439..................$138 2

No much difference in your pay check and you are investing in your future....no brainer! Also remember this does not include employer contribution.

[yungintl]

i think speed_N_blood needs to stop posting regarding 401k. Its obvious he doesnt have an understanding of how 401k works.

If your living pay check to pay check then you a) Need a better job b) Stop spending so much

Let me put out a hypothetical example out here for you to understand:

John is saving four percent of his annual income, $67 per month. His contribution is deducted from gross wages before being taxed. This reduces his current taxable income. Although John is saving $67, his take-home pay is reduced by only $57 as a result of his tax savings. In other words, it cost him only $57 to save $67.

Johns annual income: $20,000 (single)

..................................No Savings........... Savings
Gross Monthly Pay...............$1667..................$1667
Monthly contribution................$0.................... ..$67
Taxable Income...................$1667..................$1 600
Estimated Taxes....................$228...................$2 18
Take home pay....................$1439..................$138 2

No much difference in your pay check and you are investing in your future....no brainer! Also remember this does not include employer contribution.

but say John's making 20 grand now but he plans on being in a higher tax bracket when he retires, wouldn't he want to do after-tax contributions?

[grnlude97]

but say John's making 20 grand now but he plans on being in a higher tax bracket when he retires, wouldn't he want to do after-tax contributions?

No, that has no bearing on anything. The money will still grow tax free from the beginning.

Daniel :)

[SuperSpud]

well I have found cd's at 5.37 percent intrest rate and $100 coming from your check you do notice the difference. and im not saying im working for a company that might go bankrupt I was just warning people.



a cd can last from 1-6 months with somewhere between 4-5.37% intrest rate. so its really not a bad idea and you dont get taxed either. Also when you borrow against your 401k you have to pay interest to yourself. and you can only borrow aginst half of it and can take anywhere between 1-6 months for that to happen.


and as far as being Vested, some companies give you a certain % per year... i know before we were bought we had to work for 5 years to be 100% vested, you'd get a certain perscent of the money each year till you're 100%.. however now with the new management as soon as you start your 401k you are 100% vested... many companies are like that, many are not... just depends... but if you're doign a 401k you should be expecting to be with that company for a while anyway..


for a company to match your money you have to be "vested" into the company which can take anywhere from 6months-3 years or more.

yeah, my 401k has only been open for about 8 months and has already yeilded a 15% gain...

also, when you're talking about a 1-6 month CD at 5-6% interest, thats APR.... ANNUAL PERCENTAGE RATE.... so if you put $100 for example in a 1 month CD with say 6% interest, you wont end up with $106, you dont get 6%for just the one month, you'll have to divide by 12 and all sorts of other funky shit to find out how much you'll get exactly...

so long story short, 401k is a solid way to build funds fast.. the company is giving you half of what you invest for FREE... it'll be hard to find something you can get a better return on your money

[Ponch]

No, that has no bearing on anything. The money will still grow tax free from the beginning.

Daniel :)

:thumb:

[Speed_N_Blood]

with 401k investing your money is just like using the stock market. the stock market falls your money falls its just that simple. and with the country just about going into a recession I would not use the stock market.

[Ponch]

with 401k investing your money is just like using the stock market. the stock market falls your money falls its just that simple. and with the country just about going into a recession I would not use the stock market.


Okay...you can put money in your pillows while i go buy up all the stock at half price. Then when the market starts to rebound like it always does I'll sell you that same stock at 4 times the price. :rock:

[SuperSpud]

with 401k investing your money is just like using the stock market. the stock market falls your money falls its just that simple. and with the country just about going into a recession I would not use the stock market.

even so, at most the stock market falls a small % each day and will eventually go back up.. our economy is "weak" now and the stock market is falling a % or two a day, even still the amount of money you "lose" is insignificant compared to the amount of money your company is giving you b/c they match your investment.... so in reality, you put in money, your company matches 50% of that, stock market goes down a few % big whoop you're still up a lot of money....

unless it absolutely crashes, you're fine....

[grnlude97]

even so, at most the stock market falls a small % each day and will eventually go back up.. our economy is "weak" now and the stock market is falling a % or two a day, even still the amount of money you "lose" is insignificant compared to the amount of money your company is giving you b/c they match your investment.... so in reality, you put in money, your company matches 50% of that, stock market goes down a few % big whoop you're still up a lot of money....

unless it absolutely crashes, you're fine....

and if it absolutely crashes we're all screwed anyway...

Daniel :)

[SuperSpud]

yes indeedy, no matter where you have your money....

screw banks, just cash your checks and buy gold! and cigarettes!!!!!!

[Speed_N_Blood]

yes indeedy, no matter where you have your money....

screw banks, just cash your checks and buy gold! and cigarettes!!!!!!

hell yea gold is where its at!!! the price of gold has rose from 650 dollars a troy ounce to 910 dollars now!!!! thats where its at!!!! have you all noticed that our "Dollar" has been losing value compare to the euro? people are losing faith with the dollar:weirdo: but yea gold is where its at!!!!

[xtel]

damn a year to get into 401k? i had to be employed for 3 months. and they match dollar for dollar up to 5%

same here. I was like damn a year!?

[cabajaba]

Does it make any sense to start a 401k while still in college and at a job you really dont see yourself at more than just a couple more yrs? Or would it be better to just wait til you have a career or working somewhere you plan to be a long period of time?


Not trying to steal your thread, just didnt wanna make a new one.

you can create your own portable retirement plan

to answer your question: if you can contribute as low as 50 dollars a month into a retirement plan then I would. The cost of waiting is incredible. It just allows the compounding to begin earlier.

but if you have a match...do it. and when you change careers you can just that money over into a personal IRA.

[cabajaba]

401k is a ripoff! i have it and just recently stopped it! Its like this if your young and not making 50grand and up a year dont do it.cause i see it like this, when your young you need all the money you make from a check and cant really afford to have 6-10percent taken out of a check. Plus you never know when a company will go bankrupt and you will lose all of your money. Also the only way you can get your money is to quit the company and then you get taxed on your own money so you are better off putting it in a savings account and then when you get a couple thousand put it in a CD at a bank and enjoy the profits!!!

WRONG!!!!

you will only lose your money if you have your 401k funds directly invested with your company stock...ex. ENRON.

if you contribute too much, scale down your percentage.

it is important to have liquid savings but not at the cost of robbing your older self from a comfortable retirement.

don't wait for the perfect time to start putting money away...it will never come, and the temptation for spending is always there.

[Flores]

I have been at my job for a year and am now eligible for teh 401k.

I am putting in 6% which the company matches .50 for every dollar up to 6%.

What info do you guys need from me to help me start some goot investing?

:thumb:
interesting scheme. They force you to save more to get what is esentialy a 3% match.

[tigerx2000tx]

I work for M.D. Anderson and we have the TRS System (Teacher's Retirement System of Texas) under a 403(b), basically a 401 for non-profit organizations.

We automatically get deducted 6.4% every paycheck, plus the state matches at 6%, you become vested at 5 years. I also have money deducted into a Life Cycle account managed by Tiaa-Cref every paycheck.

[winc281]

RETIREMENT PLANNING FOR 2008

If you had purchased $1,000.00 of Nortel stock one year ago, it would
now be worth $49.00.

With Enron, you would have had $16.50 left of the original $1,000.00.

With WorldCom, you would have had less than $5.00 left.

If you had purchased $1,000 of Delta Air Lines stock you would have
$49.00 left

But, if you had purchased $1,000.00 worth of beer one year ago,
drank all the beer, then turned in the cans for the aluminum recycling
REFUND, You would have had $214.00.

Based on the above, the best current investment advice is to drink
heavily and recycle.

It's called the 401-Keg.

[RinasDaddy]

in for info