I currently contribute only 5%, but am considering bumping that up to 15%. None of that affects my empoyer contribution as they don't match, but instead make a fixed contribution to the account every year. Last year it was 11.% of my base salary.
401k contributions?? What Percentage do you contribute?
- Thread starter tnitsuj
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FeathersMcGraw
Diamond Member
- Oct 17, 2001
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If you're not living paycheck to paycheck, there's very little reason not to contribute the maximum amount allowable, particularly now. Investing in a depressed market is the best risk mitigator I can think of for a successful retirement.
I'm not living paycheck to paycheck by any means. I have 0 debt, I rent, but am saving up for a house so I won't really miss the extra $300 dollars or so a month. I was just wondering what the average was.
DAYAMN.... 11%?!?
My company does .50 cents on the dollar up to 4 percent. So If you put in 4% you get an extra 2%
That's what I'm doing, since the baby was born and we're buying a house.
Previous to that I was contributing 13% to make an even 15% with employer matching.
Will resume that when things settle.
My company matches 50% up to 3%, I'm currently contributing 5%.
I was doing 10% for quite a while, but lowered it to help pay off my CC's... Of course that didn't happen.
Viper GTS
I was doing 10% for quite a while, but lowered it to help pay off my CC's... Of course that didn't happen.
Viper GTS
6% - max company match.
you're a fool for not taking it if your company matches. most people i know thinks soc security will bail them ...buwhahaha.
you're a fool for not taking it if your company matches. most people i know thinks soc security will bail them ...buwhahaha.
i just went from 5 to 7 %
i know several people who contribute 10% though
we get 3% match, then 2% .50 per $1, so about 5% total match
i know several people who contribute 10% though
we get 3% match, then 2% .50 per $1, so about 5% total match
So I guess my main problem is balancing cash on hand for down payment on house vs. large retirement fund. I am 24 though so that makes it a little less of a crunch.
- Oct 28, 1999
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I do 8% at the moment. My company will match half of that (max matching) for a total of 12%. Later this fall when I pay off a few loans I will be bumping it up to 10% or 12%.
My wife puts in 5%(highest allowed) but her employer doubles that for a total of 15%.
My wife puts in 5%(highest allowed) but her employer doubles that for a total of 15%.
Agreed. 27 here.
Still I'll be withdraeing 1/2 for a downplayment and it pains me to no end. It's the best option at this point though.
Can you roll over part of a 401k to a Roth and use that for the downpayment? I think that would allow you to avoid penalties?
We have a VERY good 401k...employer kicks in 2.5%, even if you put in nothing. Employer also matches, 2-for-1, up to 4% of your salary. So if you put in 4%, employer kicks in 2.5+8 = 10.5%. I'm putting in 13.5%, bossman kicking in 10.5%, for a total of 24%. I'm hoping to retire early.
-StephenM
FeathersMcGraw
Diamond Member
- Oct 17, 2001
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Contributions to your retirement fund are "worth more" when you're young than later in life. This is due to the effects of compounding. It's also a risk management strategy, as investment losses now can be weathered far more easily than later in your career/life.
Keep in mind that 401(k) balances can be borrowed against for the purpose of a first home purchase (not that I would suggest doing this -- in fact, I advise against it), should that be necessary.
My 401k allows for the withdrawal of funds, up to half, without penalty. It's considered a loan and you have to "pay it back". The payments add back into the value of your account so it's not a bad deal overall. Payments are amortized over 5 years.
- Oct 28, 1999
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Don't know about you guys, but I can take a loan against my 401k for half the value of the 401k. I pay interest on the loan, but the interest goes back into my 401k fund. So I'm basically paying myself interest. It's a nice option if you have it available.
My employer matches 1:1 up to 5%. I put in the 5%...I've been thinking of upping it a little, but I put in $300/month now and I don't get any tax breaks (overseas job) so I may just invest more money on the side that I can get to when I want to without the worry of being penalized.
D
D
RossMAN
Grand Nagus
- Feb 24, 2000
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We have the same option but there are a few gotcha's:
1) You can only have 2 loans outstanding at once, and a max of 2 loans per year.
2) You can only borrow up to 1/2 of your VESTED BALANCE.
3) You pay back yourself plus interest (currently 6.25%).
4) The best feature, there is no "credit check" even someone with Bankruptcy, charge offs, repo's, foreclosure, late payments, etc. can take out a 401k loan.
I've taken out a 401k loan to payoff and consolidate a large cc, saved me a lot of interest.
Also the payments are deducted from my paycheck before I am paid, pre-tax deductions
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