Forums
New posts
Search forums
What's new
New posts
New media
New media comments
Latest activity
Classifieds
Media
New media
New comments
Search media
Log in
Register
What's New?
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Navigation
Install the app
Install
More Options
Advertise with us
Contact Us
Close Menu
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
.
Forums
The Water Cooler
General Discussion
401k contribution - Yay or Nay
Search titles only
By:
Reply to Thread
This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Message
<blockquote data-quote="Rez Exelon" data-source="post: 3889434" data-attributes="member: 5800"><p>IMHO Dave Ramsey is in the same boat as "Dr. Phil" and Oprah and everyone of their kin.</p><p></p><p>Listen if the company is giving you a dollar for dollar match to 6% you put that in at a minimum. If you put $6 and they put $6 you now have $12 right? If the market goes down 25% then you now have $9 --- still more than you started with.</p><p></p><p>Unless you're going to retire soon, don't worry about the market --- it'll correct and go up. If there's one thing that's true, it's that rich people will always see a recovered market, so they rest of us can get some comfort from that with our measly 401k. They'll bounce back. </p><p></p><p>Now, the question of getting rid of debt is before investing gets more interesting and can vary greatly based on a personal situation. Consider this as a broad example: If you have a mortgage with a 5% loan, does it make sense to pay more there than it does to put funds in a retirement account? At a moderate risk level, a return rate of 8% on the retirement is not unheard of. So for the same dollars, they can return more in the 401k than paying the mortgage. But that assuming both are looked at with considerations for time. </p><p></p><p>End of the day, diversification is important. 401k's are just a tool, but let's say you get to the point where you hit the IRS cap for contributions, then it's good to know where to put the leftovers.</p></blockquote><p></p>
[QUOTE="Rez Exelon, post: 3889434, member: 5800"] IMHO Dave Ramsey is in the same boat as "Dr. Phil" and Oprah and everyone of their kin. Listen if the company is giving you a dollar for dollar match to 6% you put that in at a minimum. If you put $6 and they put $6 you now have $12 right? If the market goes down 25% then you now have $9 --- still more than you started with. Unless you're going to retire soon, don't worry about the market --- it'll correct and go up. If there's one thing that's true, it's that rich people will always see a recovered market, so they rest of us can get some comfort from that with our measly 401k. They'll bounce back. Now, the question of getting rid of debt is before investing gets more interesting and can vary greatly based on a personal situation. Consider this as a broad example: If you have a mortgage with a 5% loan, does it make sense to pay more there than it does to put funds in a retirement account? At a moderate risk level, a return rate of 8% on the retirement is not unheard of. So for the same dollars, they can return more in the 401k than paying the mortgage. But that assuming both are looked at with considerations for time. End of the day, diversification is important. 401k's are just a tool, but let's say you get to the point where you hit the IRS cap for contributions, then it's good to know where to put the leftovers. [/QUOTE]
Insert Quotes…
Verification
Post Reply
Forums
The Water Cooler
General Discussion
401k contribution - Yay or Nay
Search titles only
By:
Top
Bottom
