Do you have a 401(k)?

[Kodos]

Poll to come.

[Raiders Army]

Yes, although I'm planning on working till the day I die.

[Bigsmooth]

I have a pension, which is a bit different I believe.

[Anthony]

i just started mine in january since my company changed their policy to match dollar for dollar and immediate vesting. every time i contribute to my 401k i basically get 2 for 1 dollar that's immediately mine.

[Suburban Rhythm]

Yes, and I've always contributed 6% to take full advantage of the company match. However, the company match (used to be .75 per $1 contributed, recently bumped up to dollar for dollar) is matched with company stock. Which, like just about all the others in the financial sector, is crap now. So, I used to, every qtr, sell out of all my shares and re-invest across the 4 funds I'm in. But now, the stock price is so low, I'd actually lose out, as it has nowhere to go but up.

[jeff061]

I'm awful financially. So I've been making sure I get 5-8% lifted from my check before I see it since I was 20.

I blow everything else on disposable crap.

[Buccaneer]

No, never had one, never will get one. To me, it's a big gamble and there's no way I would put my money into something like that. I am, however, very fortunate to have a generous pension fund and in just 10 years, I can retire and collect 75% of my top 4 annual incomes (still not about health care, though). I have some money in liquid investments that I can cash tax-free (i.e., get back what I put into them), plus my wife's FedEx 401k (the mutual funds part actually went up last year, the stocks part go up and down). I do understand, though, those that only contribute to SS and need something else and from the other thread, it looks like one can contribute to conservative funds, with matching funds, and still have a nice nest egg.

[Logan]

I have a 401k, a TSP (Thrift Savings Plan), and a pension that will contribute just a bit down the road (1% of my average top 3 annual incomes x number of years with the agency = what I'll get each year).

[Eaglesfan27]

Originally Posted by Bigsmooth

I have a pension, which is a bit different I believe.

Same here. I have a state pension as long as Louisiana doesn't go broke and as long as I work for the state for at least 20 years.

[Capital]

Yes...it was a 3% comp match but that's been raised to 6%. Although, they eliminated the pension plan to give the extra 3%.

[Anthony]

there is no gamble if, like me, you *just* started contributing to your 401k. i'm gonna rake in the muthafucking dollas yo. i'm buying in while the prices are ridiculously low. sure they may slide even further, but as long as i jump in *now* i got nothing to worry about. buying low, gonna sell high when the good times start rolling again and the economy in the United Socialist States of North America in 2045 is prosperous. if you've been contributing all along and started your 401k 10 years ago...ummm...i hear cardboard boxes actually are rather good for shelters and baby food tastes decent after a while. best of luck to ya. hahahaha

[wade moore]

Originally Posted by Anthony

there is no gamble if, like me, you *just* started contributing to your 401k. i'm gonna rake in the muthafucking dollas yo. i'm buying in while the prices are ridiculously low. sure they may slide even further, but as long as i jump in *now* i got nothing to worry about. buying low, gonna sell high when the good times start rolling again and the economy in the United Socialist States of North America in 2045 is prosperous. if you've been contributing all along and started your 401k 10 years ago...ummm...i hear cardboard boxes actually are rather good for shelters and baby food tastes decent after a while. best of luck to ya. hahahaha

Wow.

Talk about someone that has a complete lack of understanding of the financial markets.

[RainMaker]

Question for the financial gurus. I have an IRA I started a few years ago when I became self-employed. I also have a 401K through an old company I worked for years ago. Can I merge the two into one? The 401K is pretty small.

[wade moore]

Originally Posted by RainMaker

Question for the financial gurus. I have an IRA I started a few years ago when I became self-employed. I also have a 401K through an old company I worked for years ago. Can I merge the two into one? The 401K is pretty small.

Short answer - yes.

I would contact the company that holds your IRA to determine the right way to do it.

[terpkristin]

401(k) through work and IRA on my own.

/tk

[Suburban Rhythm]

Originally Posted by wade moore

Wow.

Talk about someone that has a complete lack of understanding of the financial markets.

Way to completely ignore all that company match money left on the table.

[Logan]

Originally Posted by wade moore

Wow.

Talk about someone that has a complete lack of understanding of the financial markets.

The ironic part is, from what I think I remember picking up in a couple posts, is that HA works somewhere in financial services.

[Buccaneer]

Originally Posted by Logan

The ironic part is, from what I think I remember picking up in a couple posts, is that HA works somewhere in financial services.

Working at is not the same thing as understanding of.

[Logan]

Clearly.

[Anthony]

Originally Posted by Suburban Rhythm

Way to completely ignore all that company match money left on the table.

there is no match when there isn't immediate vesting. it doesn't exist in the sense that it's not something you can hang your hat on until it actually becomes yours. you do understand vesting, right? that means the company match only becomes yours after x amount of time. anything can happen from the time you start contributing to your 401k till the day you begin vesting. you can leave on your own terms or in many cases today you can be fired/laid off. previously my company had 5 year vesting, 60 cents on the dollar. i wasn't sure if i would be with this firm for 1 year let alone 5. dollar for dollar match with immediate vesting is FAR different than 60 cent matching after 5 years. in the past i was more interested in taking the money and i decide what to do with it rather than being shackled to the limited investments available in my firm's 401k plan (company stock? no thank you. if it wasn't for a big merger our parent company underwent last year my particular firm would've closed up shop, per our CEO. a lot of good that company matching would have done me in that scenario). you don't have to be in the financial services industry to understand that. c'mon, i'm sure you're smarter than that.

[Anthony]

Originally Posted by wade moore

Wow.

Talk about someone that has a complete lack of understanding of the financial markets.

you clearly are not able to comprehend simple concepts re: vesting (bird in the hand being worth 2 in the bush) and getting in while prices are low. in a time when people are getting laid off left and right starting a 401K with a 5 year vesting 3 years ago means your portfolio is down and you'd forfeit the company match. at least if i get laid off now i walk away with every cent in my 401k - mine and what my firm put in. we purchased a house 3 years ago and had a babdy last year so it made more sense to have as many funds as possible available than to tuck money away for retirement and risk having to use credit cards. had we done so my 401k portfolio would be down currently. also, its not like we haven't saved, the money has simply been tucked in liquid bank accts rather than 401K's. in a shaky economy and weak job market money in savings trumps money that can't be touched for retirement. however recent changes at my firm made it foolish not to take advantage. if you can not comprehend this then you shouldn't participate in these types of conversations.

[Anthony]

case in point i run across our shareholders who contact me to make a redemption from their IRAs and they aren't 59 1/2 yet, meaning it'll be penalized further from the IRS. common answer i get when i discourage such a transaction is "i/spouse has lost a job and we need to tap into retirement funds". i don't have a significant portion of my assets tied up in retirement accts - if we run into trouble we have instant access to funds. everyone wants a million dollar 401k/IRA, but you don't spite the present to appease the future. not in this economy. however if you can spare a small portion of your salary now is a good time to get in, and in my case it makes more sense to get in now given the current changes to my firm's 401k policy.

[wade moore]

Originally Posted by Anthony

you clearly are not able to comprehend simple concepts re: vesting (bird in the hand being worth 2 in the bush) and getting in while prices are low. in a time when people are getting laid off left and right starting a 401K with a 5 year vesting 3 years ago means your portfolio is down and you'd forfeit the company match. at least if i get laid off now i walk away with every cent in my 401k - mine and what my firm put in. we purchased a house 3 years ago and had a babdy last year so it made more sense to have as many funds as possible available than to tuck money away for retirement and risk having to use credit cards. had we done so my 401k portfolio would be down currently. also, its not like we haven't saved, the money has simply been tucked in liquid bank accts rather than 401K's. in a shaky economy and weak job market money in savings trumps money that can't be touched for retirement. however recent changes at my firm made it foolish not to take advantage. if you can not comprehend this then you shouldn't participate in these types of conversations.

You are a funny, funny man.

[Anthony]

ok, you're being wade. nevermind. i presented my arguements and you've posted typical snide posts. you may be right or wrong but since i got several financial licenses under my belt i'll continue along my path.

[wade moore]

Yes, I was being a little douchish - but with good reason, you were crazy douchish with your typical "i'm a genius" routine.

The fact that you're putting money elsewhere makes my points a little less valid, but you did not state that in your initial explanation that I responded to. My "you're a funny, funny man" comment was based around your typical holier than thou routine.

Discouraging someone from contributing to their 401k is just crazy. The idea of putting money elsewhere is nice, sure - but let's be honest - most people won't do it with the regularity and consistency that you do with a 401k. Outside of that, to write-off employer contributions because of vesting is just stupid. Worst case, you've been able to invest your money pre-tax in basically the same manner you would if not for the 401k. Best case, you get free money if you end up staying with your employer. To not invest in a 401k because of vesting just really makes little sense. It's essentially a no-risk proposition. Unless you have a terrible 401k provider, you have plenty of options with your 401k and can, again, do it pre-tax and have the potential to get that money vested.

[Senator]

I always liked the advice of Scott Adams. Maybe because it matches what I have done.

1.
Make a will
2.
Pay off your credit cards
3.
Get term life insurance if you have a family to support
4.
Fund your 401k to the maximum
5.
Fund your IRA to the maximum
6.
Buy a house if you want to live in a house and can afford it
7.
Put six months worth of expenses in a money-market account
8.
Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement
9.
If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio

[lynchjm24]

Originally Posted by Anthony

.i hear cardboard boxes actually are rather good for shelters and baby food tastes decent after a while. best of luck to ya. hahahaha

Except that we still have a lot more money then you do?

[lynchjm24]

Originally Posted by Anthony

you clearly are not able to comprehend simple concepts re: vesting (bird in the hand being worth 2 in the bush) and getting in while prices are low. in a time when people are getting laid off left and right starting a 401K with a 5 year vesting 3 years ago means your portfolio is down and you'd forfeit the company match. at least if i get laid off now i walk away with every cent in my 401k - mine and what my firm put in. we purchased a house 3 years ago and had a babdy last year so it made more sense to have as many funds as possible available than to tuck money away for retirement and risk having to use credit cards. had we done so my 401k portfolio would be down currently. also, its not like we haven't saved, the money has simply been tucked in liquid bank accts rather than 401K's. in a shaky economy and weak job market money in savings trumps money that can't be touched for retirement. however recent changes at my firm made it foolish not to take advantage. if you can not comprehend this then you shouldn't participate in these types of conversations.

You're point about how long your company takes to vest makes some sense. You didn't say anything about that. Very few companies take that long to vest 401k contributions. I only had to last 36 months to vest my pension, the 401k was only 12. That's more typical then 5 years to vest 401k dollars.

[finketr]

Originally Posted by Senator

I always liked the advice of Scott Adams. Maybe because it matches what I have done.

1.
Make a will
2.
Pay off your credit cards
3.
Get term life insurance if you have a family to support
4.
Fund your 401k to the maximum
5.
Fund your IRA to the maximum
6.
Buy a house if you want to live in a house and can afford it
7.
Put six months worth of expenses in a money-market account
8.
Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement
9.
If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio

Regarding 4 & 5, the better way to do t because of pre and post-tax dollars and implications down the road is fund your 401K to the maximum of the company match (if you have one), then fund your roth IRA, then fund your 401k to the max if you can...

Regarding #8: it depends on your risk profile and age. As you get older you should be converting some things to cash to ensure you have some money to get without having to sell at a low time in the market(s).


--tim

[CU Tiger]

HA's point makes a little mathematical sense, until you factor in tax implications.

If you earn 100 and pay taxes on 100 you leave with ~70...if you then invest $25 you are down to 50.
If you earn 100 put 25 in a 401 k and then pay the same 30%taxes on 75 you are left with 52.5

Of course nothing is free and you do ave opportunity cost and your money is tied up a bit....

there are decent arguments for some not participating in 401k's but vesting is not one....

[Kodos]

Originally Posted by Anthony

ok, you're being wade. nevermind. i presented my arguements and you've posted typical snide posts. you may be right or wrong but since i got several financial licenses under my belt i'll continue along my path.

I'd just like to thank Wade for being the one who finally drove HA away.

[Cringer]

Nope, don't have one. I had a pension when with Emerson, I still get letters every year for that. I figure when I retire that is good for $20 a year. I was only there 8 years so it isn't anything to count on. Always meant to get a 401K, though Emerson didn't match because they had the pension. Now we are both self employed, so for a year now we have been saying we need to get an IRA going.

[JeeberD]

My wife does, but I currently do not. I keep meaning to, but never get around to it. The sad things is that I could have started one eight years ago when I started with OG, but never did...

[Kodos]

That's why you need to do it before your first paycheck. You never miss the money if you do it that way.

[lordscarlet]

Originally Posted by Kodos

I'd just like to thank Wade for being the one who finally drove HA away.

I had to call Wade to let him know..

[lordscarlet]

And on topic, my 401k is finally starting to recover somewhat. I'm fnally getting monthly increases -- even with the absurd amount I put in each month, it was going down for a while.

[Kodos]

Yeah, we've put a nice dent in our losses over the past month or two.

[wade moore]

Originally Posted by Kodos

I'd just like to thank Wade for being the one who finally drove HA away.

Originally Posted by lordscarlet

I had to call Wade to let him know..

Wow - I had no idea that I accomplished this.

[Kodos]

:trophy:

[Galaxy]

Originally Posted by Buccaneer

No, never had one, never will get one. To me, it's a big gamble and there's no way I would put my money into something like that. I am, however, very fortunate to have a generous pension fund and in just 10 years, I can retire and collect 75% of my top 4 annual incomes (still not about health care, though). I have some money in liquid investments that I can cash tax-free (i.e., get back what I put into them), plus my wife's FedEx 401k (the mutual funds part actually went up last year, the stocks part go up and down). I do understand, though, those that only contribute to SS and need something else and from the other thread, it looks like one can contribute to conservative funds, with matching funds, and still have a nice nest egg.

If you didn't have a pension plan (and it sounds like a good one), what would you do?

[Apathetic Lurker]

I am eligible but my company has crap 401.. I much prefer my 1-2.5% ORRI in the 70 gas and oil wells. Much better return and more fun,especially when the price goes up and up in the summer.