Should I not sign up for 401k?

Discussion in 'Mayberry Lounge' started by Richmma80, Oct 15, 2013.

  1. Richmma80

    Richmma80 Blue Belt

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    Is it a bad idea? I keep hearing us is going to default its debt and everyones 401k savings will be wiped out and economy is going to be very bad. In a few months i can start a 401k but now im thinking of not doing it
     
  2. Diablo Ryu**

    Diablo Ryu** Brown Belt

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    Fuck the world
     
  3. Bukowski82

    Bukowski82 Buckle up belt

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    First the Ethnic slur, now this? lol, you start drinking a little early today, bro?
     
  4. PolishHeadlock

    PolishHeadlock Putin Belt Platinum Member

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    Its free money and some of them have comedities only funds. You could put it all in gold if you're a tard
     
  5. chardog

    chardog That's President Donald Trump

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    I dont do it because I think I'de be better off paying off my house sooner rather than later....
     
  6. PolishHeadlock

    PolishHeadlock Putin Belt Platinum Member

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    If your employer matches you're giving away money
     
  7. Bukowski82

    Bukowski82 Buckle up belt

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    This all day. Whenever someone tells me they don't have a 401K, I ask them what they'd do if someone offered them free money.

    Only people that drink the Glenn Beck Cool-aid are putting all their money into gold.
     
  8. MASShole

    MASShole Get it?

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    Yes. Sign up.

    Your 401k savings are yours. If you get an employer match, you're getting free money.
     
  9. Diablo Ryu**

    Diablo Ryu** Brown Belt

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    Haha I did just start by gta online session and some beers...is jews an ethnic slur? I thought it was fine...but they're not funny...black people are
     
  10. Rhood

    Rhood Gold Belt

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    401k is a corporate lie
    Don't fall for that nonsense.

    If you don't believe me, ask all the employees that listed ENRON on their resume as well as many other corporations that took advantage of the economic crises and then filed for bankruptcy shortly after.
     
  11. MASShole

    MASShole Get it?

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    Yeah, because they kept 90% of their 401k in company stock, and when the stock tanked, their 401k balance went with it.

    Diversification is pretty critical to long term investments for reasons like this. Most advisors will say hold no more than 10% of your portfolio in a single company including the one you work for.
     
  12. PolishHeadlock

    PolishHeadlock Putin Belt Platinum Member

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    Lol
     
  13. wenispinkle

    wenispinkle Skankin' It Easy...

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    The alternative is to let your money assuredly decay in a savings account that won't exceed the rate of inflation.

    Retirement savings are meant to be held for the long haul. The market will experience lots of fluctuations in between now and the time you'd be making withdrawals, but statistically speaking, if you diversified properly, your return over 30+ years would almost surely come out positive.

    If you're really worried about the possibility of default, ride out the next few months until either:
    1. Our idiot politicians finally stop going full-retard or...
    2. Our idiot politicians explode the economy, in which case you'd buy up index funds when they're cheap and the recession begins to turn back around.

    In any case, investing for your retirement isn't really an option; you HAVE to do it, and not using a 401(k) that's available to you, especially if your employer matches your contributions, is a big step in the wrong direction.
     
  14. weich

    weich Silver Belt

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    The chances that the government default are slim.

    Second, although the market would take a big hit if that happened, that might actually make it a good time to buy in because prices would be extraordinary low, and unless the American economy went into a recession the likes of which the world hasn't seen you'd be fine in the long run.

    Personally I think the best bet is to max out the amount your employee matches and put the rest into a ROTH IRA.
     
  15. Kevin Rudd

    Kevin Rudd Banned Banned

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    quick question for you US folk, is your employer obligated to contribute to your 401K by law or is it only if you contribute personally that your employer must match?

    In Australia 9.25% of my gross salary has to be contributed by my employer, on top of my salary itself and that is the law.
     
  16. Thunderflash500

    Thunderflash500 Double Yellow Card Double Yellow Card

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    Getting a 401k is a pretty solid idea. If your employer offers one, and they contribute, it's a great deal. Diversify your investments. Chances are we will go through another economic meltdown, so expect that. But I mean, chances are the world is going to keep growing, and no depression is going to wipe everything out. I'm no expert but have studied business and finance, so I'm not totally clueless. Even being a conspiracy theorist I still see value in investing in the stock market and other investments. Like another poster pointed out, if you keep it in savings you'll lose it to inflation.

    You should invest in something. Just letting it sit is foolish. Even if it's a side business, it shouldn't be sitting.
     
    Last edited: Oct 15, 2013
  17. Desdinova

    Desdinova Brown Belt

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    If the employer matches a good percentage it is. If there is no matching I'm not so sure. Also pay attention to how long you have to be with the employer for it to be vested and how long you plan on staying with said employer. I had 1 company that matched 1:1 up to 15% of your paycheck, definitely worth it then. Had another company that offered 401k but did not match at all, and I opted to not use it.
     
  18. MASShole

    MASShole Get it?

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    No they are not required to contribute to our 401k plan. Usually most offer a match though, like I put in 4%, they match and add 4% as well.

    They are required to contribute to social security though. We have to pay into social security 6.2% up to $117,000 in income with each check, and they add 6.2% on that as well.
     
  19. grey poupon

    grey poupon Blue Belt

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    There are other options like a Roth IRA

    I opened a Roth IRA 3 years ago and it is doing very good

    I invested in (AMPCX) American Funds AMCAP Fund Class C, (AEPGX) American Funds Euor Pacific Growth Funds, and (ANCFX) American Funds Fundamental Investors Fund
     
  20. Terror Zone

    Terror Zone Banned Banned

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