How big is your 401k?

purplesky

Well-Known Member
My 401k is just below $120K and my goal is to retire with a balance close to $200K. I recently bought 256 shares of Apple ($95/share) through the SMA and used the dividends to buy 2 more shares. I have no personal debt and my mortgage will be paid off 3 months before I retire. My projected pension is $5K/month. My plan is to live off of my pension and delay SS until I turn 67. I am debating whether or not to tap in to my 401k to help my son pay down his $73K of student loan debt. Suze Orman says I would be foolish to do so and she is probably right but I feel awful that he is starting his professional life with that burden on his shoulders. He estimates paying $800/month for the next 10 years just to pay it off.

I wouldn't use that 401k to pay for student loans. That 5k pension is awesome but what if it gets reduced in 10 years? I would let the 401k grow untouched.

Your son has a good degree and will have a good income.
 
I wouldn't use that 401k to pay for student loans. That 5k pension is awesome but what if it gets reduced in 10 years? I would let the 401k grow untouched.

Your son has a good degree and will have a good income.
I helped my kids,as much as I could. figured I would do It now,durring my peak earning time.

Not dip into my retirement later.

They both have less than 20k student loan debt.

Now its time to save for me and the MRS.
 
Apparently I am wrong.
I thought for each year you delayed S.S. after retiring you lost a small %.
According to "I've", the amount increases each year.
Till age 70. after that,you gain nothing.

You may have been thinking. if you work,and collect SS.,Befor,full retiremnt age. (Somewhere between 66 and 67)
They will dock,your S.S.

Or a certain part of your S.S.,will be taxed if you make a certain dollar amount.
 

oldngray

nowhere special
Till age 70. after that,you gain nothing.

You may have been thinking. if you work,and collect SS.,Befor,full retiremnt age. (Somewhere between 66 and 67)
They will dock,your S.S.

Or a certain part of your S.S.,will be taxed if you make a certain dollar amount.

You can work and collect SS as long as you don't make too much (14k per year I think).
 

joesmith

Active Member
I've posted something like this before (and I always loved seeing this kind of stuff when I started saving) so I thought I'd post a timeline again so you guys/gals who are just beginning to invest can see what 401k growth looks like over time....it's very slow in the beginning. The first numbers are what I contributed each year, followed by my balance at the end of the year. I have mainly invested in the S&P, Midcap and Russell fund. The beginning years were at a 17% contribution rate, then 23%. I have it set to 24% now and it maxes out before Dec.

1997 $1,708.55
1998 $5,690.03
1999 $6,626.22
2000 $6,897.24..... $22,629
2001 $7,256.94..... $28,202
2002 $8,333.79..... $29,844
2003 $8,764.04..... $48,077
2004 $12,664.10.... $58,715
2005 $13,449.72.... $65,617
2006 $13,042.46.... $90,125
2007 $14,250.08.... $114,455
2008 $13,983.22.... $130,414
2009 $14,440.19.... $101,191
2010 $14,983.72.... $149,979
2011 $15,862.60.... $197,842
2012 $17,000.00.... $262,381
2013 $17,500.00.... $366,606

I got over $400K at that high in March but it's down some now (not sure the exact amount without looking).

You can see that horrible dip in 2009!

Wow this is great thanks for posting, this give me and I’m sure others some inspiration to save, save save. I’d like to tell everyone who responded thank you.
 

MethodsMan

Well-Known Member
When did you guys start your 401k?

I was 23. My dad who's really smart with money, begged and pleaded. Now he wants me to get it out of prudential and use his money manager. I don't really know the difference.
 

UpstateNYUPSer(Ret)

Well-Known Member
When did you guys start your 401k?

I was 23. My dad who's really smart with money, begged and pleaded. Now he wants me to get it out of prudential and use his money manager. I don't really know the difference.

You can't move your 401k while you are still working here. You can do a rollover when you retire.
 

Ms.PacMan

Well-Known Member
When did you guys start your 401k?

I was 23. My dad who's really smart with money, begged and pleaded. Now he wants me to get it out of prudential and use his money manager. I don't really know the difference.

I was 30 and my contributions were pretty half-ass in the beginning. I wish I had started earlier. Good job to all you young savers!

Our 401k is great. Stay where you are and keep trying to max it out. IMO you don't need an advisor.

One more thing. People have brought up in the past the tax savings for contributing to the 401k. The savings is significant. My federal effective tax rate averages out to 5.60% and state is 3.40% in the last 20 years (head of household, one dependent).

Your marginal tax rate is the rate that your income falls under in the tax brackets (15%, 25%, 28%, etc.). Your effective tax rate is the tax that you actually pay after deductions, credits, exemptions, etc. If you would like to see the difference that contributing to your 401k makes, you can play around with TaxCaster (Google it)

in 2013, a single filer who made $80K with no dependents, using the standard deduction would have owed $13,435. The same person contributing the maximum of $17,500 to his 401k would have owed $9,060 (because he's only taxed on $62,500). Both these guys have a marginal tax rate of 25% but their effective tax rate (the amt they actually paid) is 17% and 11% or $4,375 the non-saver is giving to Uncle Sam EVERY YEAR!
 

Ms.PacMan

Well-Known Member
One more thing. If you work until the year you turn 55, you can start withdrawing on your 401k immediately without penalty.

Our plan allows distributions at any time following separation of service http://www3.prudential.com/email/re...eamsterups/media/Summary_plan_Description.pdf pg19

and the IRS considers separation of service in the year you turn 55 an exception to the 10% penalty for withdrawals before age 59 1/2.
Tax on early distributions. If a distribution is made to a participant before he or she reaches age 59½, the participant may be liable for a 10% additional tax on the distribution. This tax applies to the amount received that the employee must include in income.

Exceptions. The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances:
  • Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55.

 

Jones

fILE A GRIEVE!
Staff member
When did you guys start your 401k?

I was 23. My dad who's really smart with money, begged and pleaded. Now he wants me to get it out of prudential and use his money manager. I don't really know the difference.
I was 30 and my contributions were pretty half-ass in the beginning. I wish I had started earlier. Good job to all you young savers!

Our 401k is great. Stay where you are and keep trying to max it out. IMO you don't need an advisor.

One more thing. People have brought up in the past the tax savings for contributing to the 401k. The savings is significant. My federal effective tax rate averages out to 5.60% and state is 3.40% in the last 20 years (head of household, one dependent).

Your marginal tax rate is the rate that your income falls under in the tax brackets (15%, 25%, 28%, etc.). Your effective tax rate is the tax that you actually pay after deductions, credits, exemptions, etc. If you would like to see the difference that contributing to your 401k makes, you can play around with TaxCaster (Google it)

in 2013, a single filer who made $80K with no dependents, using the standard deduction would have owed $13,435. The same person contributing the maximum of $17,500 to his 401k would have owed $9,060 (because he's only taxed on $62,500). Both these guys have a marginal tax rate of 25% but their effective tax rate (the amt they actually paid) is 17% and 11% or $4,375 the non-saver is giving to Uncle Sam EVERY YEAR!
Should probably clarify that this tax savings scenario only applies to the traditional 401k, not the roth 401k.
 

purplesky

Well-Known Member
How much was your 401k when you retired? Is it enough to live off of?

How much money are you guys contributing to your 401k?



My 401k is $40,000 I currently contribute 10% pretax and 5% after tax but I use that after tax as a slush fund. I buy $50 a week in UPS stock and have been known to cash that in every few years, I wish I had kept it all now. I currently have 100 shares on the books. So far this year I have earned 7% in my 401k. I like the reit fund. The s&p500 and s&p400 I have money going into the international fund and the Russell 2000 also. I wish I had been contributing 10% or more since I started.





I hope to retire early but it’s looking like that is unlikely I’d like to leave when im 55 or 56 currently im 45 with only 10 years of full time service from what I can tell there is not much of a pension at 20 years. I am saving for retirement outside of the 401k as well. I hope my 401k will be worth $250,000 when I retire and I hope to have another $200,000 in assets.

Anyone care to share your retirement savings strategy

I will throw in the value of "time" when investing. START SAVING IN YOUR 20s AND SAVE ATLEAST 15%.

The key to investing and super saving is to invest and save until it hurts WHEN YOU ARE YOUNG.

If you don't. You will not be retiring early in your 50s on your own terms.

I really don't know any union UPSERs who have left UPS early because they had a huge retirement portfolio. They left for health issues or unfortunately lost their job due to termination.

So live below your means. No big car or boat payments. Save and pay cash for toys. Stay away from credit card debt.

Investing is about time. So start young at 15%. No excuses.
 
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