Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Retirement Topics
Just started my 401k, thoughts?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Benben" data-source="post: 1218921" data-attributes="member: 25133"><p>Brett, the issue is starting early vs. late and the power of compounding. The S&P is up 21% this year. If you have only been putting into the R401K then you are actually up only 5% from where you could have been (assuming an average tax bracket of 17%...21-17.) You lost out on 17% in this insane bull run we are currently in. If one started early in their lives and didn't wait until they were 50 to start saving, that lost 17% <strong>this year alone</strong> is an incredible amount of money when you factor in compounding! </p><p></p><p>The Roth 401K is a nice addition to a savings plan that's been in place for awhile. I started mine last year (already had 6 years savings in the 401K) when the wife informed me we will be taking a very long European trip when I retire. Fine I'll pull out a huge chunk of change 20 years from now for that 1 trip and not worry about taxes that following April. I put in 3% but will probably drop it to 1% in a year or two from now. </p><p></p><p>Compounding is the name of the game folks!</p></blockquote><p></p>
[QUOTE="Benben, post: 1218921, member: 25133"] Brett, the issue is starting early vs. late and the power of compounding. The S&P is up 21% this year. If you have only been putting into the R401K then you are actually up only 5% from where you could have been (assuming an average tax bracket of 17%...21-17.) You lost out on 17% in this insane bull run we are currently in. If one started early in their lives and didn't wait until they were 50 to start saving, that lost 17% [B]this year alone[/B] is an incredible amount of money when you factor in compounding! The Roth 401K is a nice addition to a savings plan that's been in place for awhile. I started mine last year (already had 6 years savings in the 401K) when the wife informed me we will be taking a very long European trip when I retire. Fine I'll pull out a huge chunk of change 20 years from now for that 1 trip and not worry about taxes that following April. I put in 3% but will probably drop it to 1% in a year or two from now. Compounding is the name of the game folks! [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Retirement Topics
Just started my 401k, thoughts?
Top