Suze inspired me to increase 401K
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Suze inspired me to increase 401K
| Fri, 01-09-2009 - 2:31pm |
I just went online and increased my husbands 401K contribution. It was stressful, it was nerve racking. I had to go into my files and find the paper that told me how to do it. It was a little confusing, but I did it! I increased his contribution from 3% to 8% because his company matches 1/2 up to 8% of his pay. I know that we can live without seeing this money in his check every week, but I'm sure it will be a little depressing to see that first smaller check come in. I did this because of the free book download I'm reading from Suze Orman. I know it's the smart thing to do...

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Bex -
"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."
Bex -
Abbie - this is a truly wonderful, excellent decision!
All my best,
Danni
Wow, that's great.
I thought I was doing good by upping mine an additional 1%.
Did you get the book I sent you Because you never replied back.
Mary Ann
I'm new here, but have been lurking for the past month or so.
I think your intentions are truly commendable, but I would be remiss not to mention that 401K's are very risky these days.
Mckeekitty, I have to disagree with you. IMO 401(k)s are good retirement savings tool. Assuming you have a decent choice of mutual funds, now is an excellent time to invest in a 401(k) Right now stock prices are low so you're essentially getting shares "on sale". When the market recovers those shares will be worth a lot more. that's why so many advisers recommend dollar cost averaging. if you contribute the same amount on a regular basis you will by more shares when they're less expensive and fewer shares when they're more expensive. Over time your average purchase price is lower so you actually earn more money. Historically, there has never been a 10-year period where the stock market hasn't made gains. Yes, any investment in the stock market is risky for short-term investors, but if you invest carefully in the long run the chances are good that you will do well. And if your company is matching 50% of the first 8% you contribute, you're starting with an immediate 50% return. You can't beat that.
The reality as I see it is that we have 25-30 years before we retire. If Social Security still exists, it most likely won't be enough. Since I'm not convinced SS will still be here when DH and I retire, I feel strongly that it's up to us to make sure we can support ourselves when we retire. I don't want to be a burden on our children when we're retired and there's a good chance we will need to provide for our DD who has special needs for the rest of our lives and even after we're gone. That means we need to save NOW to make sure our future is secure.
Kudos to you!
I bump mine up to 10% during the school year then back to 3% (the max my employer will match) during the summer months when I have to pay a full time nanny.
My tax guy told me my contributions last year really helped me with my tax refund.
Good for you Abbie!
Teresa
http://www.affordingpickles.blogspot.com
Interesting post McKeeKitty, and I agree that I have found Suze to be a bit out of touch.
Teresa
http://www.affordingpickles.blogspot.com
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