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UPS Retirement Topics
I need advice on 401K
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<blockquote data-quote="MendozaJ" data-source="post: 1861240" data-attributes="member: 55737"><p>Invest immediately. Here are my contributions as recommended by a buddy in the finance field. It's very important to diversify. He's doing very well so I trust his advice:</p><p></p><p>10% Roth 401k / 3% 401k</p><p></p><p>Bond Market Index 10%</p><p>Balanced 10%</p><p>S&P Equity Index 30%</p><p>S&P 400 Midcap Index 15%</p><p>Russell 2000 20%</p><p>International Index 10%</p><p>US REIT Index 5%</p><p></p><p>Be aware the Roth is after taxes. The benefit of the Roth is that it is income tax free when you reach the age requirement. You can also designate a beneficiary, who also receives the money income tax free. In other words, $100k in the Roth 401k is $100k, whereas $100k in the regular 401k will be less after Uncle Sam takes his piece of your pie. </p><p></p><p>If you find that your contribution is making money tight you can always reduce it (not recommended, adjust your spending habits before you adjust your retirement income), but keep a 3:1 ratio Roth 401k and regular 401k, respectively. </p><p></p><p>As your pay increases, so should your contributions, especially when approaching the next tax bracket. Eventually, you'll want to max out your contributions.</p></blockquote><p></p>
[QUOTE="MendozaJ, post: 1861240, member: 55737"] Invest immediately. Here are my contributions as recommended by a buddy in the finance field. It's very important to diversify. He's doing very well so I trust his advice: 10% Roth 401k / 3% 401k Bond Market Index 10% Balanced 10% S&P Equity Index 30% S&P 400 Midcap Index 15% Russell 2000 20% International Index 10% US REIT Index 5% Be aware the Roth is after taxes. The benefit of the Roth is that it is income tax free when you reach the age requirement. You can also designate a beneficiary, who also receives the money income tax free. In other words, $100k in the Roth 401k is $100k, whereas $100k in the regular 401k will be less after Uncle Sam takes his piece of your pie. If you find that your contribution is making money tight you can always reduce it (not recommended, adjust your spending habits before you adjust your retirement income), but keep a 3:1 ratio Roth 401k and regular 401k, respectively. As your pay increases, so should your contributions, especially when approaching the next tax bracket. Eventually, you'll want to max out your contributions. [/QUOTE]
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I need advice on 401K
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