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UPS Retirement Topics
How big is your 401k?
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<blockquote data-quote="Serf" data-source="post: 1787665" data-attributes="member: 50254"><p>You are paid money by an employer. You have that money in your hands for five seconds, and then it is whisked away into this account and you can’t look at it again for another 20-35 years unless you want to pay a massive penalty. Will you be alive in 30 years? Hopefully! Else you will never see that money again. Ok, that’s my first problem with 401k. I like to have total control over money that is called mine.</p><p>Do you think companies really pay you free money? Companies that don’t have an employer-match pay higher salaries. The Center for Retirement Research did a study based on tax data and showed that for every dollar an employer (on average) contributes to a 401k match, they pay 99 cents less in salary/pr hr.</p><p>Yes, you save tiny amounts on taxes when you are young. But this is also the period when you have the biggest tax write-offs relative to your income (dependents, business expenses, etc). So you don’t really need the extra minor savings on taxes. You will be fully taxed at the highest rate when you pull money out 30 years from now. So why not use that “extra” money to invest in yourself right now. Invest in skills that can benefit you or experiences that you can enjoy and make you happier.</p><p>401k's have been around for decades and yet the average American does not have nearly enough saved for retirement in one. And other people are making money on your money that you cannot even get to until you are 59.5 unless you want to lose even more. I actually do not have another solution for the working class or working poor, especially those of us who slave at Express. Unless you have cold hard cash, and plan on moving to a modern 2nd world country, that's all I really got as a solution. <img src="/community/styles/default/xenforo/smilies/group1/confused1.gif" class="smilie" loading="lazy" alt=":confused:" title="Confused :confused:" data-shortname=":confused:" /></p></blockquote><p></p>
[QUOTE="Serf, post: 1787665, member: 50254"] You are paid money by an employer. You have that money in your hands for five seconds, and then it is whisked away into this account and you can’t look at it again for another 20-35 years unless you want to pay a massive penalty. Will you be alive in 30 years? Hopefully! Else you will never see that money again. Ok, that’s my first problem with 401k. I like to have total control over money that is called mine. Do you think companies really pay you free money? Companies that don’t have an employer-match pay higher salaries. The Center for Retirement Research did a study based on tax data and showed that for every dollar an employer (on average) contributes to a 401k match, they pay 99 cents less in salary/pr hr. Yes, you save tiny amounts on taxes when you are young. But this is also the period when you have the biggest tax write-offs relative to your income (dependents, business expenses, etc). So you don’t really need the extra minor savings on taxes. You will be fully taxed at the highest rate when you pull money out 30 years from now. So why not use that “extra” money to invest in yourself right now. Invest in skills that can benefit you or experiences that you can enjoy and make you happier. 401k's have been around for decades and yet the average American does not have nearly enough saved for retirement in one. And other people are making money on your money that you cannot even get to until you are 59.5 unless you want to lose even more. I actually do not have another solution for the working class or working poor, especially those of us who slave at Express. Unless you have cold hard cash, and plan on moving to a modern 2nd world country, that's all I really got as a solution. :confused: [/QUOTE]
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