401k...learning the market

Babagounj

Strength through joy
I haven't set up my retirement 401k plan yet. I'm 6 months in as a loader. I really never played the stock market and don't really know the best way to set up my savings because it all seems foreign to me at this point. Most people tell me learning how the market works is pretty simple however. If there are any pointers you guys can give me on the best way to setup my retirement that would be great.

Remember this..............
Time is your best friend.
Pick one fund to invest in.
And slowly let your money grow.
Only plan to move money into another fund when your money reaches a set amount.
It's ok to make some mistakes, that's how we learn.
 

ajblakejr

Age quod agis
Remember this..............
Time is your best friend.
Pick one fund to invest in.
And slowly let your money grow.
Only plan to move money into another fund when your money reaches a set amount.
It's ok to make some mistakes, that's how we learn.

Bite the bullet and max out!!
There is no such thing as "can't" afford to max out your contributions to your 401k.
And invest in Roth IRA's.

Become that person who contributes 25% of you wage in your 401k.
Do that for ten years, let's say age 20 - 30, and watch your $$ grow.

You could put yourself in a sweet spot at age 30 and pull back contributions to company match level.

Play your cards right and invest early and young. You could cease contributing and end up with more $$ in your 401k than your coworkers and the public in general.

And...most important...know exactly how much $$ you contributed and the value of your 401k on the day you get engaged and marry.
 

UpstateNYUPSer(Ret)

Well-Known Member
aj, the kid is a PTer living in Queens. It would be very difficult for him to max out anything at this point in his life.

Stripe, start small and adjust your contribution rate whenever you get a pay raise.
 

ajblakejr

Age quod agis
Life is full of choices.

I was part-time and worked two jobs.
My bartending tips became "bonus"money that I rolled into TRPrice Equity Income one unit at a time.

I shared an apartment and regretted my expensive new car habit.

I learned to live on clothing from Goodwill because I discovered a dirty secret women have and benefited because of the secret "skinny closet". (Purchase new clothing to fit a size you plan to be and eventually donate it to Goodwill with the spanking new tags still attached.)

And now I know several people that "wished" they would have contributed more when younger.

All I can say is "save baby save"...

And to futher from my experience, when someone I know graduates from college, I give them a choice of 500. cash or start a Roth IRA which I will fund the first 1,000.

Two have grabbed the cash...one went for the Roth IRA. The Roth IRA grew and was used for her down payment as a first time home buyer...

And sometimes, Mom and Dad are so excited that you consider saving for your future...they may toss a few bucks at you.

Like I said. Choices.
 

over9five

Moderator
Staff member
I would just add:

Don't save so much that you forget to live NOW. Leave yourself money to take a nice vacations, buy something nice for your S/O, and do things now before you're too old.
 

ajblakejr

Age quod agis
I would just add:

Don't save so much that you forget to live NOW. Leave yourself money to take a nice vacations, buy something nice for your S/O, and do things now before you're too old.

Live. Yes.

Look at long term insurance / disability insurance because you never know what the future has in mind for you.

Don't get married until all your friends start their second marriage. Believe me, they will marry very young and start divorcing before that wedding is paid off.

Create your bucket-list because in it you will recognize priorities.

Establish credit and never post anything online that you would not want your grandmother to read, view or comment on.

Most of all - develop a work ethic because it is gold and it is becoming rare.
 

moreluck

golden ticket member
I like your first one......we have had long term ins. since we've been too young to think about it.

We live in a +55 community and hear some horror stories about the long term care places and their costs!
 

UpstateNYUPSer(Ret)

Well-Known Member
I have had long term care insurance for about 3 years or so. The younger you are the lower the premium will be; however, get it too young and you may be throwing money away.

I also have disability insurance and a $500K term life insurance policy. The term life is a 20 year policy designed to cover me while I am working.

I pay about $200/month for all of the above.
 

Re-Raise

Well-Known Member
And to futher from my experience, when someone I know graduates from college, I give them a choice of 500. cash or start a Roth IRA which I will fund the first 1,000.

First off AJ , I am going to need your address so I can send you a graduation invitation for my daughters.

And secondly, I have never thought about it until now, how much better it is to fund a Roth Ira when you are young. Since you are making so little at that age you are in a much lower marginal tax bracket which takes away some of the tax advantages of a traditional IRA or a 401K.
 

kingOFchester

Well-Known Member
I have had long term care insurance for about 3 years or so. The younger you are the lower the premium will be; however, get it too young and you may be throwing money away.

I also have disability insurance and a $500K term life insurance policy. The term life is a 20 year policy designed to cover me while I am working.

I pay about $200/month for all of the above.

Smart that you didn't get the "whole" life insurance policy......like throwing money in a hole.

I have life for 500k, no disability. Paying under 50 a month, but I am in my 30's.
 

kingOFchester

Well-Known Member
Disclaimer!!!

No one on this site (that I know of) is a professional financial planner. Please don't base your investments on any advise given here.
Get professional help. It doesn't have to cost you money. There are always free seminars from professional financial planners. Go and listen and ask questions and pick someone you like to help you.
A little reading could help too.

And I was just going to let everyone in on a great penny stock that was just sent to my email account......

Kidding aside, I agree with you.
 

UpstateNYUPSer(Ret)

Well-Known Member
Smart that you didn't get the "whole" life insurance policy......like throwing money in a hole.

I have life for 500k, no disability. Paying under 50 a month, but I am in my 30's.

My term life insurance is $48/month. My LTC is $38. My disability polices, which cover me 24/7 for accident and sickness, is $114/month.
 

ajblakejr

Age quod agis
I was lucky. I had the opportunity to purchase Long Term Care insurance during open enrollment.
I was working and with this Met-Life policy - I was able to enroll even with Multiple Sclerosis.
 
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