When did you start 401k and what's your balance

[oldngray]

Remember in the 1980's when IRA's became popular? At first you got a direct tax credit for contributions ( up to $3000 per year I think). So many people started using them the government freaked about the lost tax revenue so changed the rules so that IRA's were much less attractive and pushed most people into 401(k)'s. They could do the same thing with 401(k)'s now.

 

[Jones]

I pulled out some investments this week because this run-up makes no sense.
Seemed like a good time to cash in some profits and sit on the sidelines for a month or so.

In regards to the 401k takeover, that will not occur as long as the Republicans can block it which is good for a couple of more years.

I wouldn't say this run-up makes no sense, the economy has been steadily improving albeit nowhere near as fast as we would like. I am concerned about it being too enthusiastic though and I took a stronger cash position back in January cuz I'm too close to retirement to go on any wild rides. Bad for ol Jonesy's heart.

As far as a 401k takeover goes, eh, the govt gave them to us and the govt can certainly take them away. That was part of Herman Cain's plan, in fact it's part of any plan that talks about scrapping the current tax code.

 

[Ms.PacMan]

I pulled out some investments this week because this run-up makes no sense.
Seemed like a good time to cash in some profits and sit on the sidelines for a month or so.

In regards to the 401k takeover, that will not occur as long as the Republicans can block it which is good for a couple of more years.

I don't believe you. You said you are invested in muni bonds and dividend stocks in an earlier post on another thread. Both have some pretty steep tax consequences for selling at the wrong time. You might want to add a financial/investing disclaimer at the bottom of your posts also for people who misguidedly respect what you say and don't realize it's only an attempt to manipulate them into your political views.

For those of you who don't know - municipal bonds must be held until maturity or they are not tax free and dividends from dividend stocks must be purchased by the ex-dividend date prior to the actual payment of the dividend and then held 60 days after the dividend is issued for the dividend to be consided "qualified" and taxed at a cheaper rate (0% for the 10-15% tax bracket).

The 401k "tax" would not really be a tax on 401k's but rather less of a tax break on monies put into 401k's (currently traditional 401k contributions, up to $17,500, are subtracted from your income and wages on the W-2 and not declared or taxed on your tax return). I hope congress never changes this.

The fear mongering in the media and unregulated wall street is not helping to solve the crisis of people not saving for retirement and there will be a crisis if millions of seniors end up on welfare and the solution will not be to let them starve but to increase taxes to pay for them.

 

[Ms.PacMan]

Remember in the 1980's when IRA's became popular? At first you got a direct tax credit for contributions ( up to $3000 per year I think). So many people started using them the government freaked about the lost tax revenue so changed the rules so that IRA's were much less attractive and pushed most people into 401(k)'s. They could do the same thing with 401(k)'s now.

That's always the way it goes. The wealthy (because of their access to tax advisors) figure out some loopholes in the tax code or are given tax breaks that only they can afford to take advantage of and they begin to exploit/use them. When the mainstream folks join in, the tax advantages are changed or the loopholes are closed.

 

[kingOFchester]

I don't believe you. You said you are invested in muni bonds and dividend stocks in an earlier post on another thread. Both have some pretty steep tax consequences for selling at the wrong time. You might want to add a financial/investing disclaimer at the bottom of your posts also for people who misguidedly respect what you say and don't realize it's only an attempt to manipulate them into your political views.

For those of you who don't know - municipal bonds must be held until maturity or they are not tax free and dividends from dividend stocks must be purchased by the ex-dividend date prior to the actual paymant of the dividend and then held 60 days after the dividend is issued for the dividend to be consided "qualified" and taxed at a cheaper rate (0% for the 10-15% tax bracket).

The 401k "tax" would not really be a tax on 401k's but rather less of a tax break on monies put into 401k's (currently traditional 401k contributions, up to $17,500, are subtracted from your income and wages on the W-2 and not declared or taxed on your tax return). I hope congress never changes this.

The fear mongering in the media and unregulated wall street is not helping to solve the crisis of people not saving for retirement and there will be a crisis if millions of seniors end up on welfare and the solution will not be to let them starve but to increase taxes to pay for them.

Buying and selling stocks within an IRA are "tax deferred". The tax won't be assessed until you begin taking distributions from the IRA. At the time of distribution, the money is taxed as regular income, not at capital gains. Unless the money is in a Roth, then it can be withdrawn, at a specific age, with no taxes.......as of now anyway.

I assume Hoax has his money well diversified.

 

[kingOFchester]

Planning for retirement is FAR FAR from easy. There are many investing options for retirement, with just as many results that have varying consequences. It is complicated. I find it best to look at my investments as a business. My office (corner of bedroom) is made up of whiteboards, stickies, charts and cork boards. I have goals, plans and diagrams written on the boards as well as current status of accounts. I have charts stuck to the cork boards. I evaluate my current funds and allocations on a regular basis. I have enough paper, whiteboards, markers and charts to make UPS drool!!!

Also, I would suggest people use the internet and get involved in forums for the individual investor.

But be sure to start somewhere. My situation is unique as I have a small business. I am able to take advantage of "profit sharing", further complicating the investing style to minimize tax obligation now and in the future.

max out all your retirement options and you will have a wonderful retirement!

 

[Benben]

Also, I would suggest people use the internet and get involved in forums for the individual investor.
QUOTE]

Any specific forums you really like or recommend? Such as Seeking Alpha.


As for Hoax "pulling out" I am sure he meant he moved around his allocations, like getting the monies out of the Russell2000 and putting them in the say the stable value fund because he forsee's a correction in the market comming. This is a very intelligent thing to do if one sees something they don't like on the horizon. This is exactly why I hate it when I see someone saying, "set it and forget it." Just seems a very, very lazy thing to do.

 

[Catatonic]

I wouldn't say this run-up makes no sense, the economy has been steadily improving albeit nowhere near as fast as we would like. I am concerned about it being too enthusiastic though and I took a stronger cash position back in January cuz I'm too close to retirement to go on any wild rides. Bad for ol Jonesy's heart.

.

The US economy is driven 70% by consumer spending.
Sounds like we are doing the same thing and close in timing and doing them for the same reasons.
I moved some S&P index and Russell into Government STI funds for awhile.
I'll monitor and think about "back-in" in May.

 

[Catatonic]

I don't believe you. You said you are invested in muni bonds and dividend stocks in an earlier post on another thread. Both have some pretty steep tax consequences for selling at the wrong time. You might want to add a financial/investing disclaimer at the bottom of your posts also for people who misguidedly respect what you say and don't realize it's only an attempt to manipulate them into your political views.

It's in my 401k duffuss!

Maybe I should have made that clearer for people who jump to conclusions without having their $zit together.

When it comes to investing, I don't care about politics.

 

[serenity now]

name calling / time out

 

[Catatonic]

name calling / time out

Duffuss? Maybe? ... I thought a poster who is calling me a liar because of tax consequences in a thread talking about 401k investments deserved a mild rebuke. I actually felt a bit sorry for her since she goofed so badly.

Duffuss was much nicer than, "Jane, you ignorant slut!" which did cross my mind.

 

[East coast navy]

My bad. Reading that back; it just sounds wrong. I was just really trying to see where I was compared to a number value. All the time that I have spent reading through the forum I swore that I was not going to be the guy that asked the stupid question and woop there it was. Sorry about that.

It's ok some of these guys speak from the heart lol. It's all good.

 

[brownmonster]

Ms.PacMan can take it. She appears to have thick skin.

 

[East coast navy]

Started in 2005 but 5%, have 28,000 when I get settled in my house starting 1% increases yearly till it gets to 15%. Have 8 years in and 22 to 30 years left, just just don't have the age to go early but helps me save.

 

[Old International]

I just need 2-3 more good years(PLEASE) and then I am going to start moving the money to less risky ventures. And I watch seeking alpha, and the dow jones/stock market very carefully..........

 

[Harley Rider]

of the people that have responded to this thread thus far, does anyone give 10% (or more) of their gross earnings to a church or a combination of charities?

Yes.............. I do. Thats one of the reasons that only 3% of my pay goes into my 401k.

 

[brownmonster]

Yes.............. I do. Thats one of the reasons that only 3% of my pay goes into my 401k.

Don't start a thread in a few years entitled "Why can't I afford to retire?"

 

[Benben]

Started in 2005 but 5%, have 28,000 when I get settled in my house starting 1% increases yearly till it gets to 15%. Have 8 years in and 22 to 30 years left, just just don't have the age to go early but helps me save.

My tactic is start Jan at 3%, pay off Xmas (I have 2 kids) then start ramping up. Its March I am at 7% (4%in 401K and 3% in the Roth, +3 % in the after tax that I plan on rolling over into a broker account next January)

My plan last year and this year: Each pay raise bump at least a %. When peaks hit (both vacation peak and X-mas peak) and our checks go higher, bump again. My Goal is be at 20% by Dec 25th. Last year I was 2K shy of the 17K max contribution limit. If you increase your contributions when your checks get bigger you never, ever notice the increase. Just something to make you think.

 

[Jackburton]

Timothy 5:8
Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.

Think about that when you do your giving in relation to what you are saving. Not calling anyone out but I started to get the feeling some in this thread feel the need to bastardized those who don't give yet save for their (read family) retirement/savings.

 

[thebrownbox]

This is going to sound dumb but I haven't started mine yet and I'm 5 years in.. Should I set a percentage to make up for the time I lost?