401K Maxout chesthunara?

[SwethaMandava]

meru 401K just employer match varaku peduthunara leka max chesthunara?

max chesthey retirement varaku bayataku teeyalemu, dhani kanna manam bayata invest chesthey better aa?

Please suggest.

[FrustratedVuncle]

9 minutes ago, SwethaMandava said:

meru 401K just employer match varaku peduthunara leka max chesthunara?

max chesthey retirement varaku bayataku teeyalemu, dhani kanna manam bayata invest chesthey better aa?

Please suggest.

If you have investment ideas that can ROI 10% or above then just contribute employer match.

I max out coz, 22k after tax 17k vastundi chethiki, in 401k that 22k will grow tax free until withdrawal. 

[Vaaaampire]

Max out

[Aquawomen]

salary more than 220k  unte 401k mida invest chesukoo

 

[Galactus]

max out, with employer match good savings avutundi

I just started maxing out from 2023, hope I can continue for a few years

my Manager in previous company had more than 500k in 401k

[Aquawomen]

1 minute ago, Galactus said:

max out, with employer match good savings avutundi

I just started maxing out from 2023, hope I can continue for a few years

my Manager in previous company had more than 500k in 401k

Vesting period ani untundhi 1 year lo company change cheste waste no

3 years unte 30% emlpoyer match

5 years unte 50% employer match

10 years unte 100% match anni sollu untundhi

evaddiki telusu company tho untamoo 

[Galactus]

1 hour ago, Aquawomen said:

Vesting period ani untundhi 1 year lo company change cheste waste no

3 years unte 30% emlpoyer match

5 years unte 50% employer match

10 years unte 100% match anni sollu untundhi

evaddiki telusu company tho untamoo 

My vesting period is 1 year

 yeah, you have to stay that period

 some companies will not have such rules

[Konebhar6]

21 hours ago, Aquawomen said:

Vesting period ani untundhi 1 year lo company change cheste waste no

3 years unte 30% emlpoyer match

5 years unte 50% employer match

10 years unte 100% match anni sollu untundhi

evaddiki telusu company tho untamoo 

Inta ghoramgaa eppudu chudaleedu. Usual ga between 1-3 yrs untundi ...

[Konebhar6]

22 hours ago, SwethaMandava said:

meru 401K just employer match varaku peduthunara leka max chesthunara?

max chesthey retirement varaku bayataku teeyalemu, dhani kanna manam bayata invest chesthey better aa?

Please suggest.

I have always maxed out. But thinking to change strategy now. See analysis before

Criteria:

• 401k:You invest $23,000 every year for 10 yrs. Lets assume you make a yearly gain of 10%.
• Outside investment:You invest $23,000 every year for 10 yrs. Lets assume you make a yearly gain of 10%. You also pay a 30% tax after each year.

	401K	Regular Investment
Total Amount (10yrs)	$403,216.84	$340,022.00
Your Investment	$230,000.00
Taxable amount	$173,216.84
Tax (30%)	$51,965.05
Amount after retirement	$351,251.79	$340,022.00
10% Penalty	$40,321.68
Total Amount	$310,930.10	$340,022.00

You are only making 11K more in 401K after calculating all taxes. However if you withdraw before retirement, its huge difference. Investing outside is better. 

Decide yourself.

 

 

[Aquawomen]

22 hours ago, Galactus said:

My vesting period is 1 year

 yeah, you have to stay that period

 some companies will not have such rules

name the company which don't have the vesting rules

[MACH]

On 11/12/2023 at 6:16 PM, Aquawomen said:

salary more than 220k  unte 401k mida invest chesukoo

 

[Aquawomen]

3 hours ago, Konebhar6 said:

Inta ghoramgaa eppudu chudaleedu. Usual ga between 1-3 yrs untundi ...

some comapnies change rules in 2023

[Aquawomen]

6 minutes ago, Aquawomen said:

some comapnies change rules in 2023

what u think salary is 160k 401k invest cheyadam better or not .vesting rules undi company joined in june. planning to change company in next 3 months 1 year kuda undalenu  

 

[FrustratedVuncle]

1 hour ago, Konebhar6 said:

I have always maxed out. But thinking to change strategy now. See analysis before

Criteria:

• 401k:You invest $23,000 every year for 10 yrs. Lets assume you make a yearly gain of 10%.
• Outside investment:You invest $23,000 every year for 10 yrs. Lets assume you make a yearly gain of 10%. You also pay a 30% tax after each year.

 

 

	401K	Regular Investment
Total Amount (10yrs)	$403,216.84	$340,022.00
Your Investment	$230,000.00
Taxable amount	$173,216.84
Tax (30%)	$51,965.05
Amount after retirement	$351,251.79	$340,022.00
10% Penalty	$40,321.68
Total Amount	$310,930.10	$340,022.00

You are only making 11K more in 401K after calculating all taxes. However if you withdraw before retirement, its huge difference. Investing outside is better. 

Decide yourself.

 

 

Annai 401k lo 23k = 17k in outside investment. Now do the math.

BTW 401k is not meant for bulk withdrawal or withdrawal before 65. If that is the case you are contradicting the purpose

[Konebhar6]

6 minutes ago, FrustratedVuncle said:

Annai 401k lo 23k = 17k in outside investment. Now do the math.

BTW 401k is not meant for bulk withdrawal or withdrawal before 65. If that is the case you are contradicting the purpose

You are correct. I calculated taxes on profits but did not remove 30% pre-tax. Based on that the 10-yr net comes to $250000. So putting in 401k is better even including the penalty.

Like I mentioned I have maxed out 401k till now and have good amount there. I don't know how it will be useful to me after I retire. I would rather have that money now. Everyone's life is different. I have'nt made the decision and If I cant I will stay put.