i just upped my 401k contribution. am i crazy?

[BlahBlahYouToo]

was doing 3% my first year since company didn't offer match first year.
now after 1 year, the company matches 100% up to 6% so i upped it to 6%, even though i'm down 35% for the year.

am i nuts or is this a good move?

i'm at least 35-40 years away from retirement.

 

[HardcoreRobot]

buyers market

 

[child of wonder]

Originally posted by: HardcoreRobot
buyers market

 

[darkxshade]

Well you were pretty crazy to begin with, I don't see how this changes anything.

 

[pontifex]

I just upped mine from 3% to 5% about 3 weeks ago. Mine is also down about 30-some %. I don't really understand the whole thing but I've always been told its best to put as much as you can into 401k.

 

[acheron]

You should always be contributing up to whatever they match. It's literally free money.

I upped mine a month or so ago, past what the match is, because as has been said, it's a buyer's market.

 

[Elganja]

Originally posted by: acheron
You should always be contributing up to whatever they match. It's literally free money.

pretty much agree with this, but if you can afford it, max it out.

 

[tefleming]

I upped mine recently (above the match %age). Market can't go down much further... and if it does, my IRA is the least of my worries.

 

[Blieb]

I started maxing mine out in August ... before that I just did 3% for about 18 mo's ...

Company is dropping 3% match Jan 1 ...

I'm gonna talk it over with the old lady and see if we're going to cover that gap ...

Edit: I should add that my August activities were not related to any predicitions or conditions ... more like internal budget revision ...

 

[maddogchen]

thats a correct move. Always get all of the company match.

I'm upping mine in Jan from 15% to 20%.

 

[Kelemvor]

Should always put in as much as the company will match. You get free money. After that, if you have extra, you can put more in up to the limit.

Always better to buy low than to buy high.

 

[BlahBlahYouToo]

Originally posted by: Kelemvor
Should always put in as much as the company will match. You get free money. After that, if you have extra, you can put more in up to the limit.

i wish i could put in more. the extra 3% dropped my paycheck by over $100.
i figure since i have more than enough $ leftover each month, i might was well dump it into 401k to get some tax deductions and build up my retirement savings.
i'll do that when the economy does better and i don't have to worry about building up 6+ months of living expenses.

 

[ViviTheMage]

Originally posted by: HardcoreRobot
buyers market

 

[maziwanka]

im not going to up or contribute to my 401k till next year

 

[speg]

5% of what? Your income? Now is the time to buy!

 

[Riverhound777]

Mine is at 10% and my company doesn't match at all. I am the crazy one. But none of mine is invested yet, i'm just building it up and letting it sit till things calm down. Only had it for 6 months or so.

 

[Codewiz]

Ok, I think anyone who doesn't put the maximum allowed into it. It is tax free. I guess you wouldn't do it if you like giving your money to the government. I put everything into bonds.

 

[LS21]

nope

i upped both my 401k *and* my discount stock program contribution

evreyone else seems to be running on the wrong side of the street...

 

[Utterman]

Dollar Cost Averaging FTW

 

[SunnyD]

Today is my first paycheck in a little more than 7 years that I've contributed into a 401k. 6% + 3% match.

 

[mb]

Nope, not crazy. I upped mine from 6% to 15%. I'm a good 40 years from retirement too.

 

[Special K]

Originally posted by: Codewiz
Ok, I think anyone who doesn't put the maximum allowed into it. It is tax free. I guess you wouldn't do it if you like giving your money to the government. I put everything into bonds.

 

[bananapeel42]

the money isn't "tax free" you're going to pay through your ass in taxes when you actually start to use it.

 

[DisgruntledVirus]

Originally posted by: bananapeel42
the money isn't "tax free" you're going to pay through your ass in taxes when you actually start to use it.

Unless you're at the retirement age, and/or use it as a downpayment on a house/car.

 

[Riverhound777]

Originally posted by: bananapeel42
the money isn't "tax free" you're going to pay through your ass in taxes when you actually start to use it.

Actually mine is a Roth 401k, so I pay out my ass right now, but no tax later when I need it