retirement accounts - maxing out 401(k)
Good to contribute max to company sponsored 401(k). How much is your company matching btw?
Are you guys maxing out a secondary retirement account, such a Roth?
What percent of income goes to trading individual stocks? I assume your retirement accounts are index funds / non-managed funds. If so, are they broad-market like S and P 500 index funds or ones that focus on low cap??
Fuck playing around with individual stocks. I have a modest account ($5k) that is my personal max for playing around with stocks. And key term there is playing. It's like a casino, and I don't expect to win anything.
There was that one time I bought several thousands of dollars of Netflix stock at like $75 after the Flixster debacle, and was yelling loudly for everyone to buy. It was super fucking risky, and I sold just shy of trippling the value because I was pulling cash together to buy a second house.
I also should have a pension that will pay me 30-40% of my max salary, and then social security checks. So I'm set. Unless those last two things disappear due to politics and I have to riot.
One thing to note here is that employer contributions do not count against your 401(k) contribution limit. So if your employer has a matching program, you can contribute up to your 401k limit plus the employers’ matching amount.."
A standard match is 50 cents on the dollar up to 5% of salary. The 5% is per-paycheck. With a $100k salary that means you could get $104 dollars for free every paycheck as long as you contribute at least $208 per paycheck.
You want to get that $104 or free money 24 times a year. If you contribute too much and hit the $18,000 limit in November, that means you won't get a match on the final 2-3 paychecks of the year. You just lost $208 or $312.
Google's 401k match is 100% up to $3k or 50% up to the contribution limit (whichever is higher), which seems to be rather good.
I currently don't have secondary retirement or investment accounts, though I'm now around the point where I should start doing that.
Also you can afford 750 a paycheck? You are sooo rich :-p
Let's say you get 12 paychecks a year. You contribute $18,000 on the very first check. Your company gives you $104 for free. For the remaining 11 paychecks that year you contribute nothing to the 401k and get no free money. Your total annual free money is $104.
Now let's say you split that up. You contribute $1500 each check, 12 times a year. Now you get $104 each paycheck in free money. That's total annual free money of $1248.
You gotta spread it out!
Or maybe 62 was the 75% mark, and 55 was 60%. I'll have to do the math again.
After I buy the house and have money again (HAHA YEAH RIGHT), I'm going to catch up on the deferred comp that I should've been using for the last 11 years.
EDIT: Nope, age 55 is 64.5% FAS, and 62 is 75%.
Pretty sure the way the math works out, it's still better for me to retire at 55 if I can make it on that salary.
I could retire at 52 and 60% FAS, which might be pretty sweet.
They had a kickstarter:
It's been developed by my Cousin and my Uncle. My cousin was an early internet guy, tech evangelist and such and got out before the crash because he saw it coming. My Uncle was the head of University of Texas's endowment and kept them out of the meltdown.
The program is great and really good ad providing an investing education so you can make your own decisions.
The current federal setup is 1% for every year you work. Have to be at least 57, and hit 30 years (although there are some loopholes for those who start late, or get out early during voluntary downsizing periods). If you make it all the way to 62, you get an extra 0.1%.
I really can't see myself making it to 62, even though it could net me as much as $15k/year extra for the rest of my life. It's not like I'm gonna be hanging around putting a bunch of kids through college. By time I hit the age 57 minimum retirement age, my kid will be 31, and I'm gonna be ready to sail a boat around the world.
This pension is probably the single biggest reason I'm still in civil service.
The 1% per year is kinda lame compared to most pensions, but pensions are super hard to come by anyway, and I'm still grinding away in civil service for a few reasons. It's not an overly demanding job, and is ridiculously stable, while my wife's industry is super unstable. Even though it's only 1% per year, the three-pronged retirement approach of pension, 401k (TSP), and social security check should be more than enough money to live an awesome retirement
Also, the ability to have this discussion while at work with essentially 0 repercussions is pretty sweet.