How much % are you invested in your 401K

[yemdoing]

44 minutes ago, sarvayogi said:

that depends on how you manage debt and pay interest on credit cards. 

I roughly had earlier 200k in credit card payments and personal loans at one point in time. But investing that cash gave me 400k in returns. So its all subjective 

Why you had 200k in credit card payments ? Something theda kotting

[krishnaaa]

1 hour ago, sarvayogi said:

yes you should only invest until employer match counts..never to max out..

Very few companies give 6 to 6 max. Many give a 6 to 3 or a max limit of 4500-6000 as contribution

If dual income....always max out.

If you don't, you will be paying highest tax bracket income tax applicable to you, on that money.

[Thokkalee]

46 minutes ago, sarvayogi said:

that depends on how you manage debt and pay interest on credit cards. 

I roughly had earlier 200k in credit card payments and personal loans at one point in time. But investing that cash gave me 400k in returns. So its all subjective 

Chala mandi ilaane credit cards loans thiskuni crypto and stock market lo invest chesaaru… some ppl benefited and many people were assaamed.. 

[Spartan]

Max out

[Konebhar6]

53 minutes ago, idibezwada said:

why maxing out doesn't make sense to you?

There is a big chunk already. Have to pay tax while withdrawing funds. If early withdrawal, have to pay penalty. If money taken out during 60's, its for kids. I don't get to enjoy it much. 

I was thinking, rather I would pay tax now and invest it or buy some assets that would grow better ... To have more control over it. 

[Pandubabu]

1 hour ago, Konebhar6 said:

Most funds in 401k have a % allocated to Equity. Agressive funds invest more % of the money into Stocks and less money into safe assests like bonds/moneymarket/etc. Less aggressive funds invest less % into stocks.

You are confusing index funds with target dated funds 

[Konebhar6]

10 minutes ago, krishnaaa said:

If dual income....always max out.

If you don't, you will be paying highest tax bracket income tax applicable to you, on that money.

Early withdrawl -> Have to pay 10% penalty + tax at the tax bracket during that year -> Bad option

Only way it works is if you have no income (retire or early retirement) and take out small amounts every year. 

What's your exit plan for 401k?

[SaradaChinnodu]

double income...no debts...maxing out so far.

Now we are thinking to just contribute up to the company match and hold on to the rest and invest them in S&P 500. We have plans of early retirement and dont want to pay 10% penalty when we withdraw from 401k. We rather pay the taxes now to have control over investments (our company 401k does not allow us to meddle with investments)

 

My advice is if you are not willing to take out before 59.5 years, go with 401k max out otherwise think about it.

Db prends: if you see holes in my approach , do let me know. Appreciate your advise.

[Konebhar6]

3 minutes ago, Pandubabu said:

You are confusing index funds with target dated funds 

Correct. I did not read that properly. Schwab 401k lo I did not see many options for Index funds except Technology, Russell 1000 and HealthCare. I am invested in Technology funds.

[Spartan]

  old age lo naaku 401k ne income....anduke max pedtunna. no other logics

[Konebhar6]

3 minutes ago, SaradaChinnodu said:

double income...no debts...maxing out so far.

Now we are thinking to just contribute up to the company match and hold on to the rest and invest them in S&P 500. We have plans of early retirement and dont want to pay 10% penalty when we withdraw from 401k. We rather pay the taxes now to have control over investments (our company 401k does not allow us to meddle with investments)

 

My advice is if you are not willing to take out before 59.5 years, go with 401k max out otherwise think about it.

Db prends: if you see holes in my approach , do let me know. Appreciate your advise.

Initially without much thought I invested in 401K. Recently started thinking, may be its not a good idea to max out and my thoughts are in line with yours. 

[Konebhar6]

2 minutes ago, Spartan said:

  old age lo naaku 401k ne income....anduke max pedtunna. no other logics

You can never retire in USA. High maintenance. Property taxes, Car/Home Insurance, etc cost a lot. Need money after retirement too. 

Need to have a plan for that. 

[babu_bangaram]

2 hours ago, Konebhar6 said:

I am at about 30%. Mostly into Technology funds. Rest in cash. How about you?

sitting on cash is crime🙏

[kiran1012]

17 minutes ago, Konebhar6 said:

Initially without much thought I invested in 401K. Recently started thinking, may be its not a good idea to max out and my thoughts are in line with yours. 

401k is not meant for financial sound people @Konebhar6who know how to & where to invest their money.

it is for people who are not smart with portfolio management.

[idibezwada]

27 minutes ago, Konebhar6 said:

There is a big chunk already. Have to pay tax while withdrawing funds. If early withdrawal, have to pay penalty. If money taken out during 60's, its for kids. I don't get to enjoy it much. 

I was thinking, rather I would pay tax now and invest it or buy some assets that would grow better ... To have more control over it. 

id em logic uncle....you will pay tax now if you don't contribute....by contributing in 401k your pretax money compounds kada...you still need some money for maintenance after 60....you can withdraw lower amount to be in the lower tax bracket....you can always pay taxes and invest in individual stocks but the question is since how many years are you investing and how many times did you beat the market and with what percentage?