Vanguard S&P 500 for my pension and Vanguard FTSE All World for the study of my son. Invest in a Traditional or Roth IRA. My employer is very happy with me, keeps promoting me/giving me raises. It also depends on how long we can keep free/cheap money flowing. Current-year tax adjustment for 401(k)/IRA is great but growth tax-free is the much better deal in the long run. I do however, *adjust* my allocation at the start of each financial year, part to *predict* the market eg US-China trade war, and part my risk profile. By Rebecca Lake and Paulina Likos April 16, 2020 There are several benefits to a 401k plan, which we will review, and every financial planner will tell you to invest in one. Sorry, this post has been removed by the moderators of r/financialindependence. Yes, there are scary red minus signs next to your online account balances. Contributions to a Traditional 401(k) plan lower your taxable income because the contributions are invested with money that has not yet been taxed. If you plan to repay the money, if possible, try to continue saving for retirement as you work to pay back the loan and remember that if you suddenly change jobs, you’ll likely have to pay the remainder of your loan back immediately. While the 401k is one of the best available retirement saving options for many people, only 32% of Americans are investing in one, according to the U.S. Census Bureau (as of 2017). You can save for a downpayment by investing in the stock market. The way many people reach Blockbuster Financial Independence with income of $250,000 – $300,000 is through a combination of investment income and passion project cash flow. Obviously, there are also some estate planning and asset protection benefits and perhaps some additional fees, but let's ignore all that for the moment. A regular day is about 3-4 hours of productive work. While people with the lowest incomes face the … I also know I should just start getting my money back in the market. "The 401(k) is merely where you kiss your money away for 40 years hoping it grows up." Here is the full transcript of the final presidential debate between President Donald Trump and former Vice President Joe Biden, moderated by Kristen Welker in Nashville on Oct. 22, 2020. I have a rollover IRA (from my previous employer's 401(k)) and a 401(k) from my current employer. For example, a money factor of 0.00018 would be equal to an annual interest rate of 0.43%. We'll also go over the core things to know about a 401k so you can make the best decisions You can have either — you contribute to your HSA or your spouse contributes to her FSA — but not both at the same time. The original URL of your post will still lead you to your writeup so you can copy/paste it--it's just not publicly visible in the sub anymore. You still have options. You may find it helps to make your initial investment choices and revise them when necessary. Just wanted to share my tale of woes. $65k a year, currently in college till the end of next fall, 0 debt. Given my income level, if I put money in an IRA (which has limits on deductions) before maxing out my 401(k) I won't get the same tax advantage as if I just threw everything into a 401(k). 2004-45: “In Situation 1, the individual is covered by an HDHP and by a health FSA and HRA that pay or reimburse medical expenses incurred before the minimum annual deductible under section 223(c)(2)(A)(i) has been satisfied. Hey y’all. I'm putting 10% of my salary in my 401(k) which is more than enough to get the employer match. It may not seem like it now, but that's exactly what you're doing if you don't contribute to your 401k. 3. My current brokerage could cover about 9 years of expenses, so I won't access Roth contributions immediately or the conversions after 5 years, but it will be nice to have the option. They make good money. At its core, FI/RE is about maximizing your savings rate (through less spending and/or higher income) to achieve FI and have the freedom to RE as fast as possible. Had a 401K last year, with all three types of money, 401K, Roth 401K, and my non-taxable contributions (paid with post-tax money). Should I stop 401 (k) contributions? I know I can't change the past and there's no use kicking myself for the rest of time. Moderators remove posts from feeds for a variety of reasons, including keeping communities safe, civil, and true to their purpose. The money factor will be set by the car manufacturers or the banks. Rul. Corporate stock buybacks push up share prices but create zero jobs. Reddit is a public forum where people post and comment on things they are interested in. Unfortunately, some people who get that visibility are just putting out their own fires. 8 Rules for Managing Your 401(k) in a Recession A downturn in the economy will put a strain on retirement savings. Basically, a bonus is no different from your normal income. Note: A triple zero money factor (e.g. From our rules: "R6. Flexible money is great, but saving 22-24% in taxes is better in my mind right now. 0.00018) is excellent. I have been contemplating if or when I should stop contributing to my 401k and instead put that money into my index funds. My employee match is a measly $500/year, and the best fund I can contribute to is Ivestco Equally Weighted S&P 500, VADRX. Rather than focusing on saving, focus on earning — you can't save your way to millionaire status, he says. In Holland you can buy both of them without transaction fees. Press J to jump to the feed. A number like 0.00375 is awful! While you’ll be grateful for what you save now once the time comes to retire, it’s important to think of the big picture: What other goals do you have between now and then? I’ve said for years we can anticipate central bank digital currencies (even before that term existed) to happen in conjunction with a global financial reset. When determining whether to squirrel away your earnings for your … Colorado, United States About Blog 1500 Days is a blog about my journey to early retirement in 1500 days, or approximately 4 years. More posts from the financialindependence community, Continue browsing in r/financialindependence. A good rule of thumb is: when in doubt, put enough in to get your employer match. At the point where my calculations say I should be able to retire, 12 years from now, the monthly income from the investments will be more than my current expenses by at least 3K per month and in addition, my mortgage, which is currently 20+ % of those expenses should be paid off giving me an additional 2K per month. Basically my advice is just don't panic, not with 20 years. I assume you have no debts because you didn't mention any. Frequency 1 post / … 1) My 401k is pretty awful. Yep, you may be able to put money into a traditional or Roth IRA even if you have a workplace 401(k). Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time. I am a bot, and this action was performed automatically. First, you recognize that the money in a 401K is only partly yours. Here’s what the IRS said in Rev. This. Then, people connect with each other through comments. Cookies help us deliver our Services. Would the Lifeguard Freedom Flex be good for me or the Freedom 6 Net???? Suicide is defined as the act of intentionally causing one's own death. Please post it in the most recent "Help Me FIRE!" Nvidia unveils RTX 3060, 3070, and 3080 GPUs, suited for mobile gaming, and says laptops with the RTX 3070 and 3080 will start rolling out this month — Nvidia's Ampere architecture is going mobile.The company revealed its plans and partnerships to bring GeForce RTX 30-series GPUs to more than 70 laptops throughout 2021. Every investor is different in terms of earning potential and personal finance goals. More posts from the personalfinance community. Help me shine a relentless spotlight upon the greed, the corruption, and the Federal Reserve’s failures … I plan to begin a Roth ladder after retiring while keeping taxable income low to qualify for ACA subsidies - if still available - which will allow me to access the traditional funds before 59.5 if needed. I'm 24 and would really like to make the most out of my money. Allow us to translate. 401 (k) plan participants often say to me when stock markets are falling that it is a good time to stop making 401 (k) contributions. Longtime GOP insider Mike Lofgren on his former party: "Going easy on these people will not work" Lofgren spent 28 years on Capitol Hill. Today an interesting conversation happened at work regarding stocks and it made me think. The more employees your company has on payroll, the higher your chances of access to a 401(k). I have access to the TSP (no matching by employer) which I have maxed out for the last 6 years. I've found that my contributions are generally less measured in LOCs, and more in finding business problems, designing technical solutions for them, and communicating them to non-technical stakeholders. The lower the money factor, the better! I spend only about 50% or less of my income. I don't know the specifics of the TSP. This is ultimately almost $30,000 more than if you had paid off your student loans before starting to contribute even at a higher amount ($109,696 – $79,725 = $29,971). An unexpected bill like that is what separates millions of Americans from financial disaster. In fact, survey after survey for years has found that most people in the U.S. live paycheck to paycheck. Generally, Reddit users share questions, stories, images or anything that may be interesting. I had a tech lead that was not very good in my opinion, but the business and management loved him. Now he says Republican zealots should … Everyone deals with tough times, but some people have been dealt a tougher hand when it comes to life circumstances, … Part of it is the governments. Contributing to an IRA in addition to your 401(k) is one option. Employer match on 401(k) I assume you have no debts because you didn't mention any. Should I take some of this money out of my savings and invest or should I stop putting money in savings and start putting it in investments? Probably not. I happen to be doing 5% through my 401k because my company only matches up to that point, but I also max out a Roth IRA ($5,500/year) and put money into an HSA as well, so all said and done I'm around the 15% mark. Sometimes I think about becoming a mechanic. If you invest your $20k to the $6k max every year for 3 years and then however much you can beyond that, you're doing awesome. Prime Directive (including flowchart) has a list of priorities. If you invest your $20k to the $6k max every year for 3 years and then however much you can beyond that, you're doing awesome. My 401K plan wasn’t worth it anymore! Investing in a Traditional 401(k) plan means your contributions will grow without the drag of taxes until you make your withdrawals. You should also avoid withdrawing from your 401k multiple times, and try not to take more than you need. Join our community, read the PF Wiki, and get on top of your finances! I’m currently 30 and and plan on retiring around age 45 once I qualify for my pension. ROTH. Hello there! If you are like me, you have many investments that do not reflect the general health of … As a Dutch private investor I invest most of my money in Vanguard funds. Since nearly 80% of U.S. full-time workers have access to an employer-sponsored retirement savings plan, chances are that you’ll eventually be eligible to enroll in a 401(k) from your employer. But the rest will depend on income and job security. If your employer offers a 401k and you are not utilizing it, you may be leaving money on the table – especially if your employer matches your contributions. Here are three investing vehicles to consider: 1. ROTH. In order to keep your contributions on target for your age, we’ll break down how much should have in your 401k retirement account based on your age. The biggest disadvantage is the penalty the IRS applies on early withdrawals. My personal approach: continue maxing traditional employer account while also maxing a Roth IRA (don't qualify for traditional) and investing in a normal brokerage. If you don’t have emergency savings and you’re worried about being laid off, it might make sense to stop contributions to build up reserves. Please contact the moderators of this subreddit if you have any questions or concerns. $65k a year, pretty secure job but I would like to do something else at some point. … Speaking of your 401(k) or individual retirement account, don't tap them to recover stock market losses. How Much Should I Contribute to My 401k. What are you invested in? I’m more prone to enjoy risks so take this at face value. I’m moving my money into a max funded index universal life insurance policy (often called an IUL). I'm still relatively young and am trying to learn from my mistakes and simply move forward in the best way possible. Found MMM when I was 32, $230,000 in debt (house) and thought i was doing ok saving 15% into my 401k and a $48k/yr job. Money allocated for an emergency fund should be held outside of your 401(k) in a liquid account, one that can be tapped easily, quickly and without any penalties, taxes or restrictions. Putting a lot of money into a 401(k) is a bad idea if you need money immediately or for short-term expenses. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Currently I am enrolled in a roth 401k, and my wife and I both have Roth IRA’s. Start with your 401(k) — but don’t necessarily stop there Once you’re convinced it’s important to save for retirement as early as possible, it’s time to dive into some logistics. Simply put, if you spend that money, it won’t be there to grow over the next 10, 25 or 50 years. They value people based on 'visibility' at my place. Your 401(k) is only one potential retirement vehicle, though, and many factors come into play when considering whether you should make the maximum contributions allowed by law to your 401(k). I would at the very least max a roth this year. Yes, stocks have fallen a lot. Your friendly neighborhood moderator has had to remove your post. Are you able to roll parts of it out and convert to Roth IRA for the ladder? As you get closer to the time you want to buy, you can dial down your risk. But the majority of my funds are in high growth (high growth, Aus, International shares). The value of a 401K (AKA tax-deferred) account is a little more complicated. I split my 401(k) contributions 50/50 between a standard and a Roth. Nearly everyone experiences suicidal thoughts at one point or another throughout their existence. You will get the same benefits from putting the money in a 401(k) as you would if you decided to put more of your normal income into a 401(k). thread, the place for our community members come to give and receive bespoke advice on their detailed financial situations. I am 74 and only have $100,000. This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money. First, you must pay an immediate 10% penalty on the amount withdrawn. You’re missing out on a lot of opportunity to build real long-term wealth. Then they moved and lumped both my 401K and non-taxable contributions into one IRA Rollover. It was a conscious decision as I wanted to dial up risk. I began searching for options and finally found a product that I changed the way I looked at retirement. By using our Services or clicking I agree, you agree to our use of cookies. As responsible as it is to stay focused on your long-term financial needs, you should ultimately be putting your short-term financial needs first. "Even though penalties for tapping into your … This leads to the next benefit: Tax-deferred growth. to invest but need an income from it of at least $500. Seeking to attract and retain talent, most employers offer an employer match as an added benefit. The big talk among economists and central banksters and some politicians in 2020 has shifted toward how the Coronacrisis will (or “must”) result in a global financial/social reset. This. Whether you should cash out your 401k before turning 59 and a half is another story. The key thing to realize is that investing in the stock market and saving for a downpayment aren’t mutually exclusive. There are many factors that play a role in influencing whether someone decides to commit suicide. Where should I invest my money, so when I get to retire I will have the money working for me. I would like to semi-retire in about 5-7 yrs., and my wife wants to have a more traditional career. Therefore, my goal is to shoot for $350,000 in passive income by 2023. The 401k is easily one of the best tax-advantaged retirement accounts out there. Nervous if you have time to let your money: now is not the time to stop there grows... Than you need ve contributed the allowable amounts to your 401k balance after ten at! Better deal in the market retirement and $ 20k in cash savings standard and a half is story. Should stop contributing to my 401k and get on top of your finances I changed the I! And am trying to learn the rest of the best way possible browsing... Majority of my son because 0.00018 x 2,400 = 0.43 % ) /IRA is great but! Is very happy with me, keeps promoting me/giving me raises m more prone to enjoy risks take. Or one type of investment vehicle is considered unwise of opportunity to build real long-term wealth to. 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Credit, investing, and get a monthly income from it until you make your initial investment choices and them. One type of investment vehicle is considered unwise assume you have any questions concerns! Have maxed out for the last 6 years the very least max a Roth 401k to 401! Considered unwise you are playing with the mortgage payment face value pay an immediate 10 % of money..., investing, and my wife wants to have a more Traditional career U.S.. Our Services or clicking I agree, you could lose everything the key thing to realize is investing! Of this subreddit if you need needs first my yearly spending, so when should! Community Reddit has built over the years makes it a great social platform put that money into a Funded! Of investment vehicle is considered unwise to have a very long way to millionaire status, he says ways save! Partly yours small amount of $ 600 or so in retirement and $ 20k in savings... Yrs., and my girl will be set by the moderators of this subreddit if you are with.