How much % are you invested in your 401K

[kiran1012]

1 hour ago, idibezwada said:

I don't think you can do IRA if you are doing 401K

You can also do Roth IRA only if you under some income limit

[rmJU72]

For people thinking they have better options to put money, good for them, and hoping they are actually doing well.

Others just forcing ourselves to max out 401k is just a good practice for steady guaranteed backup at some age.

[sarvayogi]

1 hour ago, Mr Mirchi said:

u r wrong abbaaa....

mari right endo cheppu mari

[sarvayogi]

2 hours ago, Spartan said:

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

anna nee lekka 4-5 years lo retire ayye vallaki kaadu ee disco. konchem young blood unna janalaki. please calm undu..

[sarvayogi]

ikkada retire aita 50 ki world tour esta 40 ki saale gallu later will realize...60 varaku kukka lekka pani chestaru bcoz of commitments

[AreyOSamba]

2 hours ago, Konebhar6 said:

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. 

You can still withdraw your 401K money without penalty after a certain age since it is your money.. you don't have to retire in US

[AreyOSamba]

3 hours ago, Konebhar6 said:

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?

When I change the job I would convert the exiting 401 K to an IRA, then have it converted to a Roth IRA by paying taxes upfront on it. Then cash it the original as and when I want and wait for the investment yield until the age limit hits for Roth IRA. 

How does it sound?

[Pandubabu]

4 hours ago, Konebhar6 said:

I started realizing that recently. It makes sense for 401k Match. We have profit sharing meaning company will put about 5% no matter we contribute or not. I will probably stop 401k contribution from next year (Maxed out already this year). Already have a good chunk and will help if I want to retire early (dream) ...

Desis mostly do not pay interest on credit cards. If they do, contributing to 401k does not make sense. Its better to pay off debts and later think about saving for future.

Do you know, if you get into mess and your life gets fuckkkked up , the only money no one else can touch is 401k.

[AreyOSamba]

2 minutes ago, Pandubabu said:

Do you know, if you get into mess and your life gets fuckkkked up , the only money no one else can touch is 401k.

Exactly! Not even courts are allowed to touch 401K money

[Konebhar6]

2 minutes ago, Pandubabu said:

Do you know, if you get into mess and your life gets fuckkkked up , the only money no one else can touch is 401k.

I did not know this. Good point. I understand no matter how careful/responsible one is, they can get into mess. However we cannot live scared. Having decent money in 401k should cover that scenario. 

I have maxed out every year including this year. I am inclined to stop this from next year. Will try a couple of years and force that money into MFs and see how it goes. 

 

[Thokkalee]

You can always withdraw from 401k with a 10% penalty… you will pay tax on that amount as no tax was paid on that… as the amount grows pre tax, your savings are bigger than you would have if you invested the post tax amount 

[rmJU72]

think if 401k as another means of diversifying…it’s not the only means.

once ur 40 and see a big chunk in it, the amt of confidence it gives u is amazing

[HugoStrange]

1 hour ago, rmJU72 said:

think if 401k as another means of diversifying…it’s not the only means.

once ur 40 and see a big chunk in it, the amt of confidence it gives u is amazing

Big chunk ante oka number cheppu kaka

[Spartan]

3 minutes ago, HugoStrange said:

Big chunk ante oka number cheppu kaka

if u joined job at 28 and started maxing out 

by 40 you will have 540k at 7% avg return rate

assuming your investment is 240k with avg of 20k contribution per year

[HugoStrange]

2 minutes ago, Spartan said:

if u joined job at 28 and started maxing out 

by 40 you will have 540k at 7% avg return rate

assuming your investment is 240k with avg of 20k contribution per year

holy cow, nadi max 150k avuthundemo by 40, right now at 100k at 37