In laymen terms can some explain to me how this works? I just started a new job at Wells Fargo and I would like to start my retirement plan. Is there any risks or fees I should know about? And where does my money go, just stocks?
Mutual funds. Since you are at Wells Fargo, a big company, you should have no load funds and they will match or contribute a certain amount each year. It is a great idea but you can't touch it until you are 59 1/2 without penalties.
check with your company. see if they match 401K. some companies are better than others. if they do match, make sure you put in at least the amount they match. that's basically free money for your retirement. i still haven't figure out what to do after switching jobs though. my previous job, i got some money there. does it just stay there? do i have to do anything? they emailed me about rollover or something like that. i have no idea what to do.
I wouldn't count on Social Security...not in 40 years You should contribute what you can (the more then better) now and keep doing it. You'll be amazed at the nest egg you will have built up by the time you want to retire. And if your company matches contributions, that's already doubling your money before and interest (40 years worth) builds up. It seems like a really long way away but it is really worth it
You can either leave it in the current 401K at your old job, roll it over into your new company's 401K (though there may be a time limit) or roll it into an IRA. It's totally up to you.
its good that your starting so young i meet so many people in their mid 20's just spending what they earn on dumb s@#$ like cars and plasma tvs.
Wells Fargo matches me every dollar up to 6% after a year of employment so I guess that's good right?
You are working at a bank; you need to study compounding and its affect. For example, if you contribute $10,000 this year and you average a return of 9% per year, you will have over $300,000 in 40 years.
By the time you get the money out we'll be in Mad Max style end times due to environmental collapse and resource shortages ~ I really wouldn't worry about it.
