401k for dummies?

MC0493

Well-Known Member
Hey everyone, i recently made book and i want to get a jump on my future since i'm only 22. I've done some searching/reading on the subject here but its kind of making my head spin. Can anyone point me in the right direction or provide some advice/guidance as to getting me on the right track for the future?
 
Hey everyone, i recently made book and i want to get a jump on my future since i'm only 22. I've done some searching/reading on the subject here but its kind of making my head spin. Can anyone point me in the right direction or provide some advice/guidance as to getting me on the right track for the future?
Start saving right now.
 

By The Book

Well-Known Member
Have 10% put into your 401k for now. Every progression(1 year) raise it 3%. If you're single only claim one dependent . Which investments you put your money in has to be your choice. Some investors can stomach higher risk than others. The point is to start now and forget about it and just manage it.
 

UPSER110

Well-Known Member
Are you full time or part time? Start saving as much as you can afford. Increase your 401K by 1% till it hurts. Start learning about the time value of money. Ideally if you could start maxing it out you would retire a multi millionaire.

Their are different funds that are managed depending on a projected retirement year.
 

MC0493

Well-Known Member
I am a full time package car driver and i was thinking of starting at 10% for now until i see where things fall. Just not sure if i should do it pre tax or roth. I'm leaning towards roth on the thought that taxes will probably go up by the time i retire.
 
Are you full time or part time? Start saving as much as you can afford. Increase your 401K by 1% till it hurts. Start learning about the time value of money. Ideally if you could start maxing it out you would retire a multi millionaire.

Their are different funds that are managed depending on a projected retirement year.
He also needs a cash reserves. You know how it goes when you are at the bottom of the list. Feast or famine.
 
I plan to get it setup with 10% today one way or another and just get the ball rolling.
You can change the percentage anytime you want to.
I encourage people to invest but I don't like to tell them how to invest.

A few things you should think about.
1 what goals do I have? .. maybe a new car,saving for a house or wedding?

2 do I have enough cash to pay my bills if work gets slow?

3 what is my tax bracket? Am I better off in the Roth or pre-tax ...or a little of both



Good luck my friend
 

MC0493

Well-Known Member
Yea deciding where to invest will be the hard part. And if i recall ups doesn't offer any contributions into your 401k correct? And thanks for the help.
 
Yea deciding where to invest will be the hard part. And if i recall ups doesn't offer any contributions into your 401k correct? And thanks for the help.
UPS doesn't match because they pay into a pension plan for you .

If I may suggest. Put the money in a 2055 or 2060 fund until you figure out

You can change the investments at anytime.
 

MC0493

Well-Known Member
That's what i thought. I already have it setup and pending for now. I'll take another look at those options when i get approved. Thanks again.
 
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