That's what's usually necessary: Some kind of change/triggering event. Leaving a job is one of those. Others include something like going on disability, reaching retirement age, or the company terminating the plan completely.I stand corrected then. I have only ever rolled-over IRA funds and 401ks from previous employers.
Being able to max out a 401k in the first place means you're quite well-off as far as I'm concerned. Median household income right now is around $53k, versus $18k/year for one person for a 401k. I'm living on my own, so I've got just one person to house, clothe, feed, and entertain. If your household has two working adults in it, I'd expect some cost savings there. But I understand that kids aren't exactly a cheap proposition. Squeezing out that $18k will probably get a bit tricky.I guess I'm well off? 27, married, maxing out my 401k, 2 ROTH IRA's, working on getting my wife to contribute more than 10%, and my employer also has a hybrid 401k match/pension.
I also have a 2006 car and could give two shits less. I will drive it till the wheels fall off. My wife on the other hand has a 2008 car and she feels she is the one that needs a new car. It's just more of the Keeping up with the Jones. We also live in a modest house for the area (and for our income). Hell, our home value is less than our yearly combined income.
It's not luck to start substantially contributing to investment retirement accounts at an early age instead of focusing on depreciating assets that have no real value the moment it leaves the store. People fail because it's a choice.
A relative of mine freaked out on Black Monday, like it was the end of the first-world forever.you could invest in the s&p 500 index for the majority of your investments and plan for a 20+ year time frame
if your going to retire soon that does suck about it being 7% down but if your not going to then your buying in at a cheaper rate
I wanted to thank everyone for the well thought out responses. I currently just put my 401k in the JPmorgan Retirement fund. They have funds that have years that are associated with your retirement date. For example mine is 2045 so I am 100% in JPmorgan(2045) fund. Any thoughts?
Average performance isn't really all that bad at all.If you buy and hold index funds and ride out the dips you'll do well over decades.
It's not a "scam" by "the man," an S&P 500 fund or Vanguard Target fund can make anyone well-off over decades. Buy, hold, ignore, keep putting in more money, retire happy.
Or bury your gold in a hole in the ground and wait for The Coming Darkness . . . .
Any idea what the expense ratio (ER) is on that fund? It should be shown somewhere with the fund information as a percentage. Hopefully it's less than 1%.I wanted to thank everyone for the well thought out responses. I currently just put my 401k in the JPmorgan Retirement fund. They have funds that have years that are associated with your retirement date. For example mine is 2045 so I am 100% in JPmorgan(2045) fund. Any thoughts?
Update 10/15/2015
I wanted to thank everyone for the well thought out responses. I currently just put my 401k in the JPmorgan Retirement fund. They have funds that have years that are associated with your retirement date. For example mine is 2045 so I am 100% in JPmorgan(2045) fund. Any thoughts?
I would actually pick a fund with a target date 5 - 10 years beyond your actual planned retirement date. That way you will get a somewhat more aggressive balance now and can always switch into a more conservative balance as you near retirement.
Yeah, i'm in the same boat there.I wish I was offered 401K where I work. I would easily max out the $18K.
As of now I was only able to defer the $5,500 x 2(me and the wife) for the traditional IRA and an HSA account of $6000. I wish I can find more ways to deferred my income until retirement.
I wish I was offered 401K where I work. I would easily max out the $18K.
As of now I was only able to defer the $5,500 x 2(me and the wife) for the traditional IRA and an HSA account of $6000. I wish I can find more ways to deferred my income until retirement.
Yeah, i'm in the same boat there.
Anyone know way they limit IRAs to $5500? Especially those of us with no 401k or any other employer option.
I have a traditional & Roth IRA & have just been dividing whatever the limit is between the 2 the last couple of years.
I put more money into some other mutual funds but i pay taxes on those every year.
Actually checked my values today.
Code:Account Return 3 Months YTD 1 Year 3 Years Since Inception Inception Date -7.95% -5.07% -3.13% 8.98% 8.80% 02/29/2012
I'm all in Retirement 2055.
Yeah, I would absolutely do this...if the fund I was already in wasn't the latest year that's current available, at least for my 401k.I would actually pick a fund with a target date 5 - 10 years beyond your actual planned retirement date. That way you will get a somewhat more aggressive balance now and can always switch into a more conservative balance as you near retirement.
Oh dear. Are they just buying more funds with management fees?My YTD is -0.32%, and I don't really care. Max it yearly, job matches 80%, and Financial Engines manages it, pretty cheap (I think) with a yearly fee of 0.3% of balance. I look at it sometimes.
The survey found nearly 87 percent of the nation's lowest earners take comfort knowing they are far enough down the economic chain that their children and grandchildren won't possibly be able to live in circumstances any worse than their own, while 65 percent noted they have enough bills to worry about without the additional middle-class burden of making student loan payments or contributions toward a retirement plan that will probably go bust in the next market crash, anyway.
In addition, half of all destitute Americans said that while they lack medical coverage, at least they aren't stuck paying increasingly high premiums for an increasingly terrible health insurance plan. And nearly all survey participants agreed they are grateful not to be trapped chasing "some sort of fantasy dream life" of middle-class American prosperity that no one in the year 2012 can ever possibly attain.
"I can't even fathom what it would be like to drag yourself to work every morning actually believing that someday it will all pay off," said Bronx, NY substitute teacher David McGrath, who along with his wife and 2-year-old son survives on food stamps. "Or to practically kill yourself for a job promotion or meager raise while under the delusion that you can work your way to the top. People waste the best years of their life doing that, and it's a goddamn tragedy."
Americans who live paycheck to paycheck and struggle to make ends meet told researchers they feel humbled by the travails of the middle class, and take solace knowing that however bad things seem, "some people out there have it a whole lot worse."
Just kinda sucks that 401k limit is what...18K while the current IRA limit 5.5K. And a person that had both could max out both i believe.Probably because they want to limit how much income you can earn that doesn't get taxed.
Yeah, its bullshit.Just kinda sucks that 401k limit is what...18K while the current IRA limit 5.5K. And a person that had both could max out both i believe.
Would be nice if they adjusted IRA contributions if that's all a person has.
Yeah, its bullshit.
Same for HSAs. Only people with High Deductible Health Plans, or no insurance at all can qualify.
Oh wow, maybe not!You can qualify for an HSA without insurance?