Decent rate of investment?

[minendo]

For those in 401k, stock purchase plan, etc what do you feel is a decent rate of investment?

Personally, I currently invest 5% in 401k (split between four options) and 3% in employee stock purchase.

 

[pyonir]

401k - As much as you can afford until your company no longer matches it.

I did 3% in the stock program at the last company i was at.

 

[minendo]

Originally posted by: pyonir
401k - As much as you can afford until your company no longer matches it.

That's what I plan on doing once the company starts matching. Of course being a new employee I have to wait 1 year for them to match. 😉

 

[LordSnailz]

The harder question is where to invest in ... I have my 401k and IRA but I'm clueless as to where to put it ...

 

[pyonir]

Originally posted by: minendo

Originally posted by: pyonir
401k - As much as you can afford until your company no longer matches it.

That's what I plan on doing once the company starts matching. Of course being a new employee I have to wait 1 year for them to match. 😉

I didn't put any money in while my company wasn't matching.

 

[DaveSimmons]

If you're not getting any matching, you might want to start a Roth IRA at vanguard.com and buy some VFINX S&P 500 fund shares. You can still put in $3K for 2004 unless you're making over $100K. You can put in another $2k for 2005 now to avoid account maintenance fees.

Do you get any kind of discount or matching on the company stock? If not, it's often not the best place to put your money.

 

[minendo]

Originally posted by: pyonir

Originally posted by: minendo

Originally posted by: pyonir
401k - As much as you can afford until your company no longer matches it.

That's what I plan on doing once the company starts matching. Of course being a new employee I have to wait 1 year for them to match. 😉

I didn't put any money in while my company wasn't matching.

I figured I might as well get started instead of wasting it on useless sh!t. If it is already out prior to payday, I can't use it. 😉

 

[minendo]

Originally posted by: DaveSimmons
If you're not getting any matching, you might want to start a Roth IRA at vanguard.com and buy some VFINX S&P 500 fund shares. You can still put in $3K for 2004 unless you're making over $100K. You can put in another $2k for 2005 now to avoid account maintenance fees.

Do you get any kind of discount or matching on the company stock? If not, it's often not the best place to put your money.

A percentage of my 401k is invested in an S&P fund. Yes, after a year I will get 100% match on the stock up to the percent of base salary I already invest.

 

[DaveSimmons]

Originally posted by: minendo
I figured I might as well get started instead of wasting it on useless sh!t. If it is already out prior to payday, I can't use it. 😉

That is one advantage of a 401k, less willpower is required than funding a Roth IRA.

Even unmatched 410k contributions beat not saving up the money for the Roth 🙂

 

[minendo]

Originally posted by: DaveSimmons

Originally posted by: minendo
I figured I might as well get started instead of wasting it on useless sh!t. If it is already out prior to payday, I can't use it. 😉

That is one advantage of a 401k, less willpower is required than funding a Roth IRA.

Even unmatched 410k contributions beat not saving up the money for the Roth 🙂

I could open a Roth if I wanted, but for now I use ING Direct. Guaranteed 2.25% return plus it is easy to access funds if needed. 😛

Saving is not a problem, it's just having instant access to the funds that worries me.

 

[DaveSimmons]

Originally posted by: minendo
I could open a Roth if I wanted, but for now I use ING Direct. Guaranteed 2.25% return plus it is easy to access funds if needed. 😛

Saving is not a problem, it's just having instant access to the funds that worries me.

Makes sense, at least until you've built up 3-6 months of living expenses and money for upcoming expenses you know about like moving or a new car lease.

After that, a stock-based Roth makes more sense, especially an S&P fund which is about as safe as stock funds get.

 

[mchammer187]

i put in the max 16% because it lowers my GAI

employer matches 5%

 

[minendo]

Originally posted by: DaveSimmons

Originally posted by: minendo
I could open a Roth if I wanted, but for now I use ING Direct. Guaranteed 2.25% return plus it is easy to access funds if needed. 😛

Saving is not a problem, it's just having instant access to the funds that worries me.

Makes sense, at least until you've built up 3-6 months of living expenses and money for upcoming expenses you know about like moving or a new car lease.

After that, a stock-based Roth makes more sense, especially an S&P fund which is about as safe as stock funds get.

Agreed. My plan is to buy a house first and then move into additional investments. Being young (of course not feeling young) I know I have several options.

 

[minendo]

Any other opinions/information?

 

[vi edit]

I'd personally bump it up to 10% or more. Otherwise I'd definitely consider a Roth for another couple grand.

Ideally I try to squirrel away 15% or more of my income into long term investments.

 

[rahvin]

Originally posted by: minendo
For those in 401k, stock purchase plan, etc what do you feel is a decent rate of investment?

Personally, I currently invest 5% in 401k (split between four options) and 3% in employee stock purchase.

18% of my own income into a 401k with a 3% employee match and 15% into my ESPP (which I generally cash out and currently spend but hope to start putting into my ROTH). And you should generally have 6 month to year of wages in a liquid flexible account to cover an emergency medical problem.

 

[minendo]

Originally posted by: rahvin

Originally posted by: minendo
For those in 401k, stock purchase plan, etc what do you feel is a decent rate of investment?

Personally, I currently invest 5% in 401k (split between four options) and 3% in employee stock purchase.

And you should generally have 6 month to year of wages in a liquid flexible account to cover an emergency medical problem.

Have that covered in both savings and LTD options with my company.

 

[PowerMac4Ever]

Ken invests 3% of his earnings into online poker...