401 k

[masters_jai_ho]

nuvvu india vellali anukunna,

10% irs penalty and 30% tax poyina kooda, nuvvu inka profit lo ne untavu, 401k money aadu invest chesthadu kada ekkado.

neeku laabham untundi, nastam aithey ledu

verey investment options deeni kante better emaina untey chusuko

but this is better ani mostly andaru 401k lo saving

[ve_ndor_bad_cows]

3 minutes ago, masters_jai_ho said:

nuvvu india vellali anukunna,

10% irs penalty and 30% tax poyina kooda, nuvvu inka profit lo ne untavu, 401k money aadu invest chesthadu kada ekkado.

neeku laabham untundi, nastam aithey ledu

verey investment options deeni kante better emaina untey chusuko

but this is better ani mostly andaru 401k lo saving

Thank you

[MusuguVeiMazzaChei]

19 minutes ago, MegaPowerRockstar said:

I have few doubts regarding 401k advantage..

1. Is it advantage when you get old and try to use the amount that employer matches along with our amount ?

         After employer puts money in your account (by match) .its all your money.

          so after retirement all money in 401k account is your money so you can do what ever with it .

1. whatever the employer matches do we get that after we retire or in between if we close 401k amount do we get that ? 

        All 401k accounts are intended for use after retirement only .you can take out when ever you want but you will have to pay taxes +penality which defends the whole purpose of          401k account.

1. if we save $1000 every month aside for future, then i dont need 401k right ?

        Your are wrong . 

         First of all 401k amount are not taxable , so every month 1k =12k year ,which in this when contributed 401k you have already saved around 3k by saving in taxes.In others work  this 12k if you have not contibuted to 401k but ran as regular salary you would have only got 9k into you are bank

        All 401k money is put in some kind of etfs or index funds so it grows by compound interest.If we save 1000 in bank in here(US) , the rate of interest to saving account in best                case is (1.5%)

can some post their experience or known information

 

[MusuguVeiMazzaChei]

8 minutes ago, ve_ndor_bad_cows said:

Thanks bro-- but how does that explain that 401k investment n returns in 5years with fee n taxes > paying of the loan quickly by avoiding the interest?

1.You got free 6% into your account

2.The 6% you contribute is tax free - so you are not really contributing 6% becasue if you took this as salary you would have taxes on this and got less into your account.

3.Fees if you notice funds there are some very minimal charged funds if thats your concern

4.The money you put and free money grows using compound principle, for eg my 401k grew by 24% in 2017 and already 5% in 2018

5.Also 401k is for future  , if you want to take out after 5 years then dont put in 401k as lot of taxes +penality will occur.

[krishna0125]

12 hours ago, ve_ndor_bad_cows said:

Naa mestri 50% matching @max 6% --

Currently india lo loan kadtunna 8.5% interest-- 10more years to go

better to clear off loan asap or invest in 401k ? Which is better money saving/profitable option?

suggestionsss plzz---

I have same kind of question..

when you say 50% matching max 6%..lets say your salary is 100k, I understand that your employer will only match 50% of 6% which means you get $3000 for upto $6000 you can invest..

Catch here is most the company will not allow to take 100% of their contribution till 6 years. They use the term vested. you will be vested only 20% if you leave after 2 year which means in 3000 he gave to you, you  need to return $2400(I am not sure if it after penalty or before penalty).

So, In my opinon 401k is not work if someone want to leave usa in 3-4 years..

[ve_ndor_bad_cows]

6 minutes ago, MusuguVeiMazzaChei said:

1.You got free 6% into your account

2.The 6% you contribute is tax free - so you are not really contributing 6% becasue if you took this as salary you would have taxes on this and got less into your account.

3.Fees if you notice funds there are some very minimal charged funds if thats your concern

4.The money you put and free money grows using compound principle, for eg my 401k grew by 24% in 2017 and already 5% in 2018

5.Also 401k is for future  , if you want to take out after 5 years then dont put in 401k as lot of taxes +penality will occur.

Good info -- thanks

[ve_ndor_bad_cows]

4 minutes ago, krishna0125 said:

I have same kind of question..

when you say 50% matching max 6%..lets say your salary is 100k, I understand that your employer will only match 50% of 6% which means you get $3000 for upto $6000 you can invest..

Catch here is most the company will not allow to take 100% of their contribution till 6 years. They use the term vested. you will be vested only 20% if you leave after 2 year which means in 3000 he gave to you, you  need to return $2400(I am not sure if it after penalty or before penalty).

So, In my opinon 401k is not work if someone want to leave usa in 3-4 years..

Have to findout my company policies which you mentioned -- thanks

[Staysafebro]

31 minutes ago, MegaPowerRockstar said:

What if i keep 750$ aside from pay ?? would that help for later purposes(buying home, etc)

Babai you are paying taxes on it and it doesn’t grow according to the economy. If you have a long term plan, it is an option normal people should not ignore. 

You have a business and make 100s of millions of dollars then so be it. FYI, even CEOs have it. It is a long term investment for your benefit and health. 

[MegaPowerRockstar]

21 minutes ago, MusuguVeiMazzaChei said:

 

Regarding 3 point.. if i want to remove the money before retirement.. then 401k is gud option /?

[ve_ndor_bad_cows]

2 hours ago, MegaPowerRockstar said:

Regarding 3 point.. if i want to remove the money before retirement.. then 401k is gud option /?

Ltt for you

[Lite]

india vellipovalasi vastey ? 60 kanna mundu, apudu ela ?

[Spartan]

9 minutes ago, Lite said:

india vellipovalasi vastey ? 60 kanna mundu, apudu ela ?

penalty katti tesko vachu.

[ve_ndor_bad_cows]

7 minutes ago, Spartan said:

penalty katti tesko vachu.

Lets say 100k -- 6% max -- 50%match ki 6years ki total after match 54k -- 

penalty fee 10% -- 48k

after taxes -- 33k

6yrsinvestment -- 36k ithe-- after taxes and penalty approx 33k