1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

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

Discussion in 'BBS Hangout' started by ClutchCityReturns, Jul 21, 2008.

Tags:
?

Do you contribute to a 401(k), 403(b), or IRA?

  1. Yes

    101 vote(s)
    80.8%

  2. No

    24 vote(s)
    19.2%
Page 3 of 3
  1. ClutchCityReturns

    ClutchCityReturns Member

    Joined:
    Apr 26, 2005
    Messages:
    13,425
    Likes Received:
    2,661
    Inflation is inevitable, but cost of living increases help to alleviate that. Sometimes, like in 2007, the cost of living increases actually overshoot the rate of inflation. Since most people give a % of their salary rather than a set amount, their 401k contribution should increase accordingly to offset the affects of inflation, and don't forget that the amount you're allowed to put in yearly increases with inflation as well. If you're young (25) like I am and you can invest aggressively over an extended period of time, the rate of return should be fairly high by the time it's all said and done.

    Do I plan on buying a yacht and sipping champagne all day off the coast of Bora Bora? I sure don't. But in my opinion, "rich" is one of the most subjective terms a person can ever use.
     
    #41 ClutchCityReturns, Jul 22, 2008
  2. mlwoo

    mlwoo Contributing Member

    Joined:
    Oct 17, 2007
    Messages:
    3,797
    Likes Received:
    109
    This such a flawed statement. People that make that max out their 401k since they have been 23, will be rich. We pull retirees from some energy companies that have 5 million+ in their 401k alone. This is not including their pension or any other retirement benefits. Most are around 1-2.5 million. Most make have never made more than $120k in their entire life.

    The quickest way to get rich in the long term is large cap equities. It's been proven. Most people just stick their money in an S&P index. Not saying this is the best choice of investment, but it absolutely dumb to not enjoy that tax-deferred growth. When you start maxing out your 401k, that's when you should start worrying about "controlling your money." Get all the bases covered before you start swinging for the fences.

    You can "do your homework" in an IRA as well without taking a tax hit.
     
    #42 mlwoo, Jul 22, 2008
  3. cson

    cson Member

    Joined:
    Jul 22, 2000
    Messages:
    3,797
    Likes Received:
    29
    #43 cson, Jul 22, 2008
  4. yc324

    yc324 Member

    Joined:
    Feb 20, 2003
    Messages:
    72
    Likes Received:
    0

    If you're not well versed in investing, maybe a target date retirement fund would be a good choice?
     
    #44 yc324, Jul 22, 2008
  5. mlwoo

    mlwoo Contributing Member

    Joined:
    Oct 17, 2007
    Messages:
    3,797
    Likes Received:
    109
    Email me through the board. I can get you an asset allocation model. It's not hard, just a little overwhelming at first. No need to freak out. Your money is sitting in cash. Target date funds are dumb. Don't do that.
     
    #45 mlwoo, Jul 22, 2008
  6. 2deep

    2deep Member

    Joined:
    Oct 7, 2007
    Messages:
    85
    Likes Received:
    0
    23, feel pretty good with my TRS (Teacher Retirement) plan. Pulls out just like SS but pays back much more. Also take my Christmas bonus from 2nd job (~20,000) and drop that into individual stocks each year. Feel I could be comfortable retiring on the TRS so I'm looking to hit it big on the market with my bonus.
     
    #46 2deep, Jul 22, 2008
  7. TexasFight

    TexasFight Member

    Joined:
    Dec 6, 2007
    Messages:
    1,813
    Likes Received:
    85
    Done. Thank you.
     
    #47 TexasFight, Jul 22, 2008
(You must log in or sign up to post here.)
Page 3 of 3

Share This Page

Style
ClutchFans Dark

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Rockets Content

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now