I don't understand retirement funds such as 401k....

[Turkish]

I don't understand retirement funds... (401k, etc, etc.)

I understand people are worried about being broke when they retire, however, if you are not going to have fun when you are young, when will you? I don't want to go to cruises when I am 60 years old, I want to live that joy when I am young...

Some say, "well I will be able to retire when I am 55 and not worry about working/money..."

Honestly, I wouldn't mind working till the end of my life... "Find a job you love, and you'll never have to work again." I know 99% of you will disagree with me, but oh well....

The only good reason I can think of is medical expenses when you get old... Maybe this is all because I am already financially stable, but oh well... what are your thoughts?

:beer:

 

[minendo]

Originally posted by: Xiety
I don't understand retirement funds... (401k, etc, etc.)

I understand people are worried about being broke when they retire, however, if you are not going to have fun when you are young, when will you? I don't want to go to cruises when I am 60 years old, I want to live that joy when I am young...

Some say, "well I will be able to retire when I am 55 and not worry about working/money..."

Honestly, I wouldn't mind working till the end of my life... "Find a job you love, and you'll never have to work again." I know 99% of you will disagree with me, but oh well....

The only good reason I can think of is medical expenses when you get old... Maybe this is all because I am already financially stable, but oh well... what are your thoughts?

:beer:

Only problem is you have to find someone that will employ you that long.

 

[Queasy]

You can still have fun when you are young. Just make sure that you have something so that you can take care of yourself in emergencies and/or when you get older.

Social Security doesn't pay d!ck so don't expect that to save you. That or raise some kids up well enough that they can take care of you.

 

[minendo]

Originally posted by: Queasy
You can still have fun when you are young. Just make sure that you have something so that you can take care of yourself in emergencies and/or when you get older.

Social Security doesn't pay d!ck so don't expect that to save you. That or raise some kids up well enough that they can take care of you.

Social security won't exist when it comes his time to collect.

 

[Turkish]

Originally posted by: minendo

Originally posted by: Xiety
I don't understand retirement funds... (401k, etc, etc.)

I understand people are worried about being broke when they retire, however, if you are not going to have fun when you are young, when will you? I don't want to go to cruises when I am 60 years old, I want to live that joy when I am young...

Some say, "well I will be able to retire when I am 55 and not worry about working/money..."

Honestly, I wouldn't mind working till the end of my life... "Find a job you love, and you'll never have to work again." I know 99% of you will disagree with me, but oh well....

The only good reason I can think of is medical expenses when you get old... Maybe this is all because I am already financially stable, but oh well... what are your thoughts?

:beer:

Only problem is you have to find someone that will employ you that long.

That's why I am going to start my own business...

I am a junior (well, about to be a senior in a month) in college and already have 75% of the capital I need to start my own company...

 

[Queasy]

Originally posted by: minendo

Originally posted by: Queasy
You can still have fun when you are young. Just make sure that you have something so that you can take care of yourself in emergencies and/or when you get older.

Social Security doesn't pay d!ck so don't expect that to save you. That or raise some kids up well enough that they can take care of you.

Social security won't exist when it comes his time to collect.

Man, I hope it doesn't. Never been a bigger pile of turd heaped onto the American public than that half-a$$ed ponzi scheme.

 

[warcrow]

Originally posted by: Xiety
I don't understand retirement funds... (401k, etc, etc.)

I understand people are worried about being broke when they retire, however, if you are not going to have fun when you are young, when will you? I don't want to go to cruises when I am 60 years old, I want to live that joy when I am young...

Some say, "well I will be able to retire when I am 55 and not worry about working/money..."

Honestly, I wouldn't mind working till the end of my life... "Find a job you love, and you'll never have to work again." I know 99% of you will disagree with me, but oh well....

The only good reason I can think of is medical expenses when you get old... Maybe this is all because I am already financially stable, but oh well... what are your thoughts?

:beer:

The company I'm with will match 5% of my investment. So, if I make , say $2000 a paycheck and decide to put in 10% of it into my 401K, then thats $200 (10%), plus $100 (5%) from the match. So, I've put in $300. 1/3 of that money was free It will gain interest and compound on itself over years.

Did you know that if you invest $20,000 when you're 25, by the time you retire, you will be a millionaire? (Atleast, I think so lol! I cant remember the numbers, but its something like that)

 

[blahblah99]

Originally posted by: minendo

Originally posted by: Queasy
You can still have fun when you are young. Just make sure that you have something so that you can take care of yourself in emergencies and/or when you get older.

Social Security doesn't pay d!ck so don't expect that to save you. That or raise some kids up well enough that they can take care of you.

Social security won't exist when it comes his time to collect.

Neither is the 401k. It's all a government sponsored Ponzi scam. By the time it comes to collect your 401k, inflation would be high to the point that the $1mill you have saved in the 401k 50 years down the line will buy you a big mac meal.

 

[omega366]

How does the money in the 401k grow? do you pick a stock and hope its shares go up? and lose if it goes down?

 

[Queasy]

Originally posted by: omega366
How does the money in the 401k grow? do you pick a stock and hope its shares go up? and lose if it goes down?

Pretty much. You pick from different funds and invest a certain percentage of your investment in those funds. It is best to diversify and, as the older you get, put your money into safer funds.

The stock market goes up and down in the short term but over a 40-50 year period it will go up by a significant amount.

 

[Queasy]

Originally posted by: blahblah99

Neither is the 401k. It's all a government sponsored Ponzi scam. By the time it comes to collect your 401k, inflation would be high to the point that the $1mill you have saved in the 401k 50 years down the line will buy you a big mac meal.

Wrong, 401ks aren't perfect but they aren't a ponzi scam. The money you put into a 401k is yours, stays in YOUR account, and will grow at a fairly good rate over a 40 year period.

The money of yours that is taken and put into Social Security is used to pay the current Social Security collectors. There is no money in an account. Just an IOU for payment if you live long enough to retire. Things are going to get worse as more and more baby boomers start retiring. There's going to be more people collecting social security than are paying out.

 

[Bleep]

Well 401K is not completly safe. I had a friend that worked for a Alfalfa pellet company that had 10 plants and they declared bankfuptcy, the money was in a bank in NY and the referee took it as a asset to the company and my friend lost all his money, he had saved in the plan for many years.

Bleep

 

[RossMAN]

Do yourself a favor and open a Roth IRA, if you haven't already.

When you're employed, if your employer offers a 401k (with match preferrably) JOIN IN. It's like refusing free money.

I wish I had opened a Roth IRA when I was 18