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How much is Good to Contribute to 401K?

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7Figures
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How much is Good to Contribute to 401K?  Reply with quote  

Just got a new job about to start to contribute to my 401k just want some insight I'm 25 btw just want someone with some experience to guide me in the right path. Thanks ahead of time.


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Post Fri Apr 08, 2016 6:38 pm
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oldguy
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quote:
about to start to contribute to my 401k just want some insight I'm 25 btw


Decide what your goal is and then back into it. Eg, if your goal is a million at age 55, invest $4550/yr @ 11%/yr . Or, if you want $2M, invest twice that amount - and so on.

But it's very important to carefully maintain that 11%/yr - if you invest in something that pays half that much (5.5%/yr), it drops fast to only $348,000.
Post Fri Apr 08, 2016 10:51 pm
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7Figures
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quote:
Originally posted by oldguy
quote:
about to start to contribute to my 401k just want some insight I'm 25 btw


Decide what your goal is and then back into it. Eg, if your goal is a million at age 55, invest $4550/yr @ 11%/yr . Or, if you want $2M, invest twice that amount - and so on.

But it's very important to carefully maintain that 11%/yr - if you invest in something that pays half that much (5.5%/yr), it drops fast to only $348,000.


Alright sounds good I'll try and go for 15%. Thanks again oldguy Cool Your the Man !!!
Post Fri Apr 08, 2016 10:59 pm
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oldguy
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Alright sounds good I'll try and go for 15%.


lol - it doesn't work that way. For two reasons - (1) "try" is like trying to lose weight - or trying to quit smoking - ie, you don't 'try', you "do". (2) 15% of income isn't definite, it needs to be a dollar amount. Eg, 15% of $1000/m won't get you a million. But 15% of $10,000/m is over $3M.

And you need to focus on the MATH, that is what's important. Such as 10%/y or 11%/y returns make you wealthy, 1%/y savings accounts don't. Know the difference.

BTW, your $12,000 fund is a good start, if you invest it at 11%/y, that will be $276,000 at age 55. You only need to do that 3 more times and your million is in the bag. Anything that you do now, before age 30, will mean big money in 30 or 40 yrs- The power of compounding is one of the most important mathematical equations. (And learn the Rule of 72).
Post Sat Apr 09, 2016 4:45 pm
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7Figures
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quote:
Originally posted by oldguy
quote:
Alright sounds good I'll try and go for 15%.


lol - it doesn't work that way. For two reasons - (1) "try" is like trying to lose weight - or trying to quit smoking - ie, you don't 'try', you "do". (2) 15% of income isn't definite, it needs to be a dollar amount. Eg, 15% of $1000/m won't get you a million. But 15% of $10,000/m is over $3M.
.


LOL Alright I will start to focus up on the Math much more. Thanks for the advice oldguy you truly are teaching me things in these little chit chats I appreciate it.

and rule 72 mhmm will look into it now.
Post Sun Apr 10, 2016 5:26 am
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louiefrias
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ZERO.  Reply with quote  

Too much loss. ZERO protection. Disgusting taxation.
The wealthy don't use them, why should you?
Read "Tax free retirement" by Patrick Kelly...available on Amazon.
Post Wed Oct 05, 2016 8:42 pm
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