If you're at least 25 years old, do you contribute to a 401(k), 403(b), or IRA?

my current company doesn't offer a 401k - so i'd have to open a ROTH/traditional IRA - and all of my contributions would enter after being taxed by my employer.

Still worth it over doing my own investing and having liquid income whenever I want it rather than locking it in until i'm 59.5 or 65?

 

Other than contribution limits, a 401k with no matching is essentially going to be the same thing as an IRA for the end user.

 

but is it not pre-tax - where an IRA would be contributions after tax has been assessed?

 

23, and I contribute 10% to an IRA and 4,000/year to a 401(k).

Being responsible sucks

 

401K is for average Joes and Janes. You don't need 401K if you plan to be rich.

 

I put in 13% and my company matches up to 6% but you have to be there for 3 years to keep what they match, which kinda sucks cause I'm looking into getting another job and i've only been there for 2 years

 

I just opened a ROTH IRA with a Self-Directed Brokerage Account - now i'm scared ****less b/c i'm not well-versed in investing in general...

i was hoping i could open a ROTH IRA and just put in the max for 2008 and have Bank of America do the investing on my behalf.

i messed up.

BoA already opened my account after i applied 2 hours ago. now i've got the 2008 max in it and have no clue how to allocate the resources.

dammit

 

I'm 20, bordering on 21, so I can't contribute yet.

My plan is to save away as much money as I can (without a 403B, which is what I have at my work) until I'm about 24/25ish.

That will be used on a weeding/honeymoon/house.

After that, I will contribute as much as possible to my 403b.

 

George, Sr.: Gilligan has promised me that all this money will be safe in IRAs.

Ira Gilligan: It’s Ira, sir.

George, Sr.: Oh, I’m sorry, Gilligan. Will be safe in Ira’s.

Spoiler

(you know I had to)

 

I just started contributing 6% into my 401k which is not much just about 89 dollars a month. I just started this job at the bank and they match up to 6% and I get to keep it after 5 years (I'm not staying there that long) Is it still worth putting money into it?

 

I'm 19 btw I don't qualify for the original question but I was just curious

 

For those who are 25-35, operate with the assumption that social security will be completely and utterly broken when you retire. Save for your retirement now.

 

You are NOT going to be rich off of your 401K. At best, your retirement standard of living will be close to what you have now (adjust for inflation and future tax rates - guaranteed to be higher), assuming no serious calamities like health or accidents happen.

Makes sense to contribute up to your employer match. After that, I'd rather take tax hit, do my homework and put my money where I can get higher returns and control my money.

 

If you're talking about a dollar for dollar matching 401K, that's a 100% return rate. A 50% matching is a 50% return rate. The rich don't turn down 100% or even 50% returns on their money.

I'm retired now. I contributed to a dollar for dollar matching 401K for 20 to 25 years. That 401K was about 20% of my retirement nest egg.

 

The different types of IRAs are distinguished by their tax rules.

Roth: Contribute after taxes, money grows in the account tax free, generally no withdrawal penalty.

Regular IRA: Contributions are tax deductible (made pre-tax), but taxed at withdrawal. As with a 401k, the trick here is to assume that your tax rate post-retirement will be way less than your tax rate now.

 

Bollocks.

 

No. You would report any contributions to an IRA on your taxes. IRA contributions are tax deductible.

 

http://rebirthofreason.com/Articles/Setzer/Saving_for_Greatness.shtml

Saving for Greatness
by Luke Setzer

A fellow freethinker who works for World Financial Group shared this document with me. Their sales representatives regularly give this flyer to prospects. The flyer names no original author of this fine dissertation, but it certainly resonates with the Objectivist ethics of financial management.

Your savings, believe it or not, affect the way you stand, the way you walk, the tone of your voice -- in short, your physical well-being and self-confidence. A man without savings is always running. He must. He must take the first job offered, or nearly so. He sits nervously on life’s chairs because any small emergency throws him into the hands of others.

Without savings, a man must be too grateful. Gratitude is a fine thing in its place. But a constant state of gratitude is a horrible place in which to live. A man with savings can walk tall. He may appraise opportunities in a relaxed way, have time for judicious estimates and not be rushed by economic necessity.

A man with savings can afford to resign from his job if his principles so dictate -- and for this reason he will never need to do so. A man who can afford to quit is much more useful to his company and therefore more readily promoted. He can afford to give his company the benefit of his most candid judgments.

A man with savings can afford the wonderful privilege of being generous in family or neighborhood emergencies. He can take the level stare of any man ... friend, stranger or enemy. That ability shapes his personality and character.

The ability to save has nothing to do with the size of income. Many high-income people spend it all. They are on a treadmill, darting through life like minnows.

The dean of American bankers, J.P. Morgan, once advised a young broker: "Take waste out of your spending; you’ll drive the haste out of your life."

If you do not need money for college, a home or retirement, then save for self-confidence. The state of your savings does have a lot to do with how tall you walk.