Author Topic: 401k plans  (Read 1886 times)

0 Members and 1 Guest are viewing this topic.

Offline Parts

  • The Mad
  • Caretaker Admin
  • Almighty Postwhore
  • *****
  • Posts: 37467
  • Karma: 3061
  • Gender: Female
  • Who are you?
Re: 401k plans
« Reply #15 on: January 05, 2009, 08:53:37 PM »
Get a safety deposit box in an out of the way town were nothing will ever happen but is close by.  I already own my own safe two actually a little gold some coins and about 10 pounds of silver and cash always have some cash that's not in the bank but that's me I'm paranoid
"Eat it up.  Wear it out.  Make it do or do without." 

'People who say it cannot be done should not interrupt those who are doing it.'
George Bernard Shaw

Offline Christopher McCandless

  • Wild Wanderer of the Aspie Elite
  • Elder
  • Insane Postwhore
  • *****
  • Posts: 10626
  • Karma: 132
  • Gender: Male
  • "I HAVE HAD A HAPPY LIFE AND THANK THE LORD. GOODB
    • Into the Wild
Re: 401k plans
« Reply #16 on: January 05, 2009, 09:52:18 PM »
Earning a large salary does not make someone have a clue about the ins and outs of investment options.
Oh, very much agreed. I've seen several really sad cases of people making six-figure incomes and then losing most of it because they never learned how to handle money. But I wasn't talking only about large salaries. Really, I don't know what anyone on here is making except McJ, who's brought it up. I was also basing the conjecture on people who own houses, people who travel a lot, etc.
Eclair is making I think - but she is Aussie. The thing with most of these six figure salary people is because they often don't invest anything at all, instead they live to their means. In Britain especially we have a lot of people like that, which is partially why we are being hit quite hard by the credit crunch.
Quote
I know that in the UK, financial products are required to have a factlist accompanying them, so anyone who understands financial markets cannot get ripped off too easily - and they know what they are buying. You certainly should be able to drag out the facts from any company literature.
I don't know about "should" - most of the terminology is new to me and so are the common pitfalls.

So many of the pitfalls also have to do with people making poor decisions based on emotion. The way my mind works, I meet emotion with emotion and logic with logic - so if I also want to avoid emotional pitfalls, it's helpful to have emotional conversations with real people about the subject. Telling myself that a regular 401k would earn me xxxx vs a Roth's yyyy because I read it on Schwab's site won't help me with decisions that would have a far greater impact, like whether to trust the stock market at all or just hide everything in a box in the back yard.  :P Or what percentage of my salary to save.
If you want to get a general idea on investments, I reckon this book might be good (I swear by this series of books for my degree, its the only way I get through it without actually having to work really hard)
http://books.global-investor.com/books/13828/Jack-Clark-Francis/Investments-(Shaum%27s-Outline)/
People do make investment decisions based on emotion, true. But by far the biggest factor is their own cluelessness and especially their arrogance in making investment decisions.
Quote
As for the webpage I linked, it only contains the very basics and no real advice - which is why I linked it.
You linked it because it offered no real advice?  ???
Yes - it largely is facts. I am not claiming to be a financial advisor here.

Offline Christopher McCandless

  • Wild Wanderer of the Aspie Elite
  • Elder
  • Insane Postwhore
  • *****
  • Posts: 10626
  • Karma: 132
  • Gender: Male
  • "I HAVE HAD A HAPPY LIFE AND THANK THE LORD. GOODB
    • Into the Wild
Re: 401k plans
« Reply #17 on: January 05, 2009, 09:53:23 PM »
Get a safety deposit box in an out of the way town were nothing will ever happen but is close by.  I already own my own safe two actually a little gold some coins and about 10 pounds of silver and cash always have some cash that's not in the bank but that's me I'm paranoid
You have to be careful that you don't lose money by inflation - the safest place for your money these days is still more or less a bank.

Offline Christopher McCandless

  • Wild Wanderer of the Aspie Elite
  • Elder
  • Insane Postwhore
  • *****
  • Posts: 10626
  • Karma: 132
  • Gender: Male
  • "I HAVE HAD A HAPPY LIFE AND THANK THE LORD. GOODB
    • Into the Wild
Re: 401k plans
« Reply #18 on: January 05, 2009, 09:56:00 PM »
I worry that the government is going to do a big money grab when SSI goes under.
Yes, that's exactly the kind of thing I'm also worried about. If I don't take the common route, I may be able to avoid that.
Absolutely nothing to stop them changing the tax benefits on a 401(k) - asides political opposition.
Quote
I am looking into alternative investments coins, metals physicals things I can touch till the market comes back
I've thought about gold but I'm not very good with trusting physical objects any more I am with trusting the goverment, and then I'd have to carry it around when I travel and worry about it getting stolen.
If you want something physical I hear wine is becoming popular. No idea how good an investment it actually is though.

Offline Pyraxis

  • Werewolf Wrangler of the Aspie Elite
  • Caretaker Admin
  • Almighty Postwhore
  • *****
  • Posts: 16678
  • Karma: 1433
  • aka Daria
Re: 401k plans
« Reply #19 on: January 05, 2009, 10:13:43 PM »
The thing with most of these six figure salary people is because they often don't invest anything at all, instead they live to their means.
Yeah, and then some tragedy hits and it all goes to shit. That's what happened to one of my friends' fathers. Dirt-poor family, first to make it big and really climb the career ladder, so there was no one from whom to learn financial sense by example. Seems to be common among first-generation rich.

If you want to get a general idea on investments, I reckon this book might be good
http://books.global-investor.com/books/13828/Jack-Clark-Francis/Investments-(Shaum%27s-Outline)/
Dunno if I'm ready to do that much study in it yet. I actually have a similar book which my father gave me when I got my first full time job, and I've read parts of it, but haven't been able to get the information to penetrate very far.

People do make investment decisions based on emotion, true. But by far the biggest factor is their own cluelessness and especially their arrogance in making investment decisions.
Emotion, cluelessness, arrogance, same deal.  :P

Yes - it largely is facts. I am not claiming to be a financial advisor here.
:laugh: I totally misinterpreted that. My mistake.
You'll never self-actualize the subconscious canopy of stardust with that attitude.

Offline Christopher McCandless

  • Wild Wanderer of the Aspie Elite
  • Elder
  • Insane Postwhore
  • *****
  • Posts: 10626
  • Karma: 132
  • Gender: Male
  • "I HAVE HAD A HAPPY LIFE AND THANK THE LORD. GOODB
    • Into the Wild
Re: 401k plans
« Reply #20 on: January 05, 2009, 10:32:13 PM »
The thing with most of these six figure salary people is because they often don't invest anything at all, instead they live to their means.
Yeah, and then some tragedy hits and it all goes to shit. That's what happened to one of my friends' fathers. Dirt-poor family, first to make it big and really climb the career ladder, so there was no one from whom to learn financial sense by example. Seems to be common among first-generation rich.
At least over here there is the comfort of the welfare state to fall back upon. :)
Quote
If you want to get a general idea on investments, I reckon this book might be good
http://books.global-investor.com/books/13828/Jack-Clark-Francis/Investments-(Shaum%27s-Outline)/
Dunno if I'm ready to do that much study in it yet. I actually have a similar book which my father gave me when I got my first full time job, and I've read parts of it, but haven't been able to get the information to penetrate very far.
The point of the Schaum's series is that you could plough through the book in an evening or two and have a pretty good grasp of most of the topics. Really its just an outline, which cuts the crap.
Quote
People do make investment decisions based on emotion, true. But by far the biggest factor is their own cluelessness and especially their arrogance in making investment decisions.
Emotion, cluelessness, arrogance, same deal.  :P
:laugh: I dunno, the latter one has brought me quite a bit of success as a strategy at times. But then I don't fancy doing investments too much, not because I would not enjoy the investing side itself but the unbearable people I would have to be be around. 4 years with them will be way too much as it is.
Quote
Yes - it largely is facts. I am not claiming to be a financial advisor here.
:laugh: I totally misinterpreted that. My mistake.

P7PSP

  • Guest
Re: 401k plans
« Reply #21 on: January 05, 2009, 10:41:20 PM »
My Local Union has a 401a plan that I put $1.70 an hour into to supplement my other retirement plans. Some people have moved their stuff around to try and maximize return, but I have left it at the safest, least likely to take a dive level because I got burned back in early 2000. The market will turn back up and it is important to consistently put money into retirements. Whatever sector of the market that your retirement is tied to will determine the proportion it will go up relative to the market when the market bounces back. I don't have expertise in investments Pyraxis so take this acvice as being worth what you paid for it. :thumbup:

Offline DirtDawg

  • Insensitive Oaf and Earthworm Whisperer
  • Elder
  • Almighty Postwhore
  • *****
  • Posts: 31602
  • Karma: 2544
  • Gender: Male
  • Last rays of the last days
Re: 401k plans
« Reply #22 on: January 05, 2009, 10:53:25 PM »
It's a type of retirement account in the USA, where you can choose to have a portion of your salary deposited, and the company you work for may match a percentage of what you contribute.
Its really about tax avoidance, above anything else.

Now who looks stupid, again?

The word for which you desperately search is, deferral.
Jimi Hendrix: When the power of love overcomes the love of power the world will know peace. 

Ghandi: Live as if you were to die tomorrow. Learn as if you were to live forever.

The end result of life's daily pain and suffering, trials and failures, tears and laughter, readings and listenings is an accumulation of wisdom in its purest form.

Offline Christopher McCandless

  • Wild Wanderer of the Aspie Elite
  • Elder
  • Insane Postwhore
  • *****
  • Posts: 10626
  • Karma: 132
  • Gender: Male
  • "I HAVE HAD A HAPPY LIFE AND THANK THE LORD. GOODB
    • Into the Wild
Re: 401k plans
« Reply #23 on: January 05, 2009, 10:58:12 PM »
It's a type of retirement account in the USA, where you can choose to have a portion of your salary deposited, and the company you work for may match a percentage of what you contribute.
Its really about tax avoidance, above anything else.

Now who looks stupid, again?

The word for which you desperately search is, deferral.
Nope - avoidance. The idea is you are in a lower tax bracket when you retire than when you are earning, so in practise most people pay less tax.

Offline DirtDawg

  • Insensitive Oaf and Earthworm Whisperer
  • Elder
  • Almighty Postwhore
  • *****
  • Posts: 31602
  • Karma: 2544
  • Gender: Male
  • Last rays of the last days
Re: 401k plans
« Reply #24 on: January 05, 2009, 11:02:23 PM »

Interesting!
How many people do you know with investment plans who made LESS money towards the end of their careers than when they started out?

:LMAO:
Jimi Hendrix: When the power of love overcomes the love of power the world will know peace. 

Ghandi: Live as if you were to die tomorrow. Learn as if you were to live forever.

The end result of life's daily pain and suffering, trials and failures, tears and laughter, readings and listenings is an accumulation of wisdom in its purest form.

Offline Christopher McCandless

  • Wild Wanderer of the Aspie Elite
  • Elder
  • Insane Postwhore
  • *****
  • Posts: 10626
  • Karma: 132
  • Gender: Male
  • "I HAVE HAD A HAPPY LIFE AND THANK THE LORD. GOODB
    • Into the Wild
Re: 401k plans
« Reply #25 on: January 05, 2009, 11:09:02 PM »

Interesting!
How many people do you know with investment plans who made LESS money towards the end of their careers than when they started out?

:LMAO:
::)
Typical pensioners are not in employment, they move on to a stage called retirement. So for example you earn a salary of $150,000 whilst single (33% tax) and then when you retire withdraw an income of $70,000 then you would only pay 25% tax as your maximum rate. You also get the first $30,000 or so a lot cheaper.

But carry on showing your totally ignorance.


Offline Pyraxis

  • Werewolf Wrangler of the Aspie Elite
  • Caretaker Admin
  • Almighty Postwhore
  • *****
  • Posts: 16678
  • Karma: 1433
  • aka Daria
Re: 401k plans
« Reply #26 on: January 05, 2009, 11:12:45 PM »
Interesting!
How many people do you know with investment plans who made LESS money towards the end of their careers than when they started out?

I don't know.  :-\  I'm paid fairly highly for my skills at the moment and I'm not sure that it would get much higher without me moving into a supervisor role, which I really don't want to do - I want to be hands-on. I also may drop this corporate thing and get back involved with startups when I've made enough to cover living expenses without an immediate income.

It makes me wonder if I should take the plan type that counts on now being as good as it gets.
You'll never self-actualize the subconscious canopy of stardust with that attitude.

Offline DirtDawg

  • Insensitive Oaf and Earthworm Whisperer
  • Elder
  • Almighty Postwhore
  • *****
  • Posts: 31602
  • Karma: 2544
  • Gender: Male
  • Last rays of the last days
Re: 401k plans
« Reply #27 on: January 05, 2009, 11:24:58 PM »

Interesting!
How many people do you know with investment plans who made LESS money towards the end of their careers than when they started out?

:LMAO:
::)
Typical pensioners are not in employment, they move on to a stage called retirement. So for example you earn a salary of $150,000 whilst single (33% tax) and then when you retire withdraw an income of $70,000 then you would only pay 25% tax as your maximum rate. You also get the first $30,000 or so a lot cheaper.

But carry on showing your totally ignorance.



Again, the basis.

We are all so lucky to have a resource such as you around. All anyone has to do is type some stuff and you type more stuff.

It's awesome!
Jimi Hendrix: When the power of love overcomes the love of power the world will know peace. 

Ghandi: Live as if you were to die tomorrow. Learn as if you were to live forever.

The end result of life's daily pain and suffering, trials and failures, tears and laughter, readings and listenings is an accumulation of wisdom in its purest form.

Offline DirtDawg

  • Insensitive Oaf and Earthworm Whisperer
  • Elder
  • Almighty Postwhore
  • *****
  • Posts: 31602
  • Karma: 2544
  • Gender: Male
  • Last rays of the last days
Re: 401k plans
« Reply #28 on: January 05, 2009, 11:37:42 PM »



It makes me wonder if I should take the plan type that counts on now being as good as it gets.

This is old news now, but no one has Killed (Ghilarducci or) The Plan, yet.

"The Plan" will remove the advantages offered by this type of investing.
Jimi Hendrix: When the power of love overcomes the love of power the world will know peace. 

Ghandi: Live as if you were to die tomorrow. Learn as if you were to live forever.

The end result of life's daily pain and suffering, trials and failures, tears and laughter, readings and listenings is an accumulation of wisdom in its purest form.

duncvis

  • Guest
Re: 401k plans
« Reply #29 on: January 06, 2009, 05:29:36 AM »

Interesting!
How many people do you know with investment plans who made LESS money towards the end of their careers than when they started out?

:LMAO:
::)
Typical pensioners are not in employment, they move on to a stage called retirement. So for example you earn a salary of $150,000 whilst single (33% tax) and then when you retire withdraw an income of $70,000 then you would only pay 25% tax as your maximum rate. You also get the first $30,000 or so a lot cheaper.

But carry on showing your totally ignorance.



Again, the basis.

We are all so lucky to have a resource such as you around. All anyone has to do is type some stuff and you type more stuff.

It's awesome!

:LMAO:

I don't know shit about how 401 (k) works. Would you like some random advice from me too?