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Posted: 7/30/2009 11:36:51 AM EST
Sorry for the general heading.
Im hoping to get employed here in the hear future and was curious to know the best way to go regarding a 401K or do something else for a "retirement" account.
How agressive do I want to get? I dont know what I will be offered but Im needing a little direction here.

Thanks
VRMN
Link Posted: 7/30/2009 11:50:20 AM EST
[Last Edit: 7/30/2009 11:50:48 AM EST by AW8460]
if the employer is matching contributions I would only put in what they were willing to match, IMO.
Link Posted: 7/30/2009 7:16:01 PM EST
[Last Edit: 7/30/2009 7:16:28 PM EST by raven]
It depends if your employer even has a 401k program. I've had several employers with different programs, I have only had a 401k when my current employer switched in 2007. The aggressiveness of your allocation has a lot to do with your age. Are you in your 20's? 30's? 40's? 50's? You should be more risk-averse as you get older because as a LOT of people have found out, as you get older, defending your savings is extremely important because there isn't a lot of time to recover if the market tanks.

For an IRA, it's really easy. Go to a brokerage and open an account as an IRA, or Roth IRA program, and contribute up to the maximum during the allotted tax year.
Link Posted: 7/30/2009 8:08:56 PM EST
Link Posted: 7/30/2009 8:32:15 PM EST
Forgot to add Im 42.
A Roth IRA is what I was contemplating.
They tax that before it goes in correct?

I was also thinking of trying to do some stocks but I know absolutely nothing about it.
A friend and I were talking about Walgreens. Seems like they are always putting up new buildings everywhere. Mind you, this was just a thought.

And thank you for the input!!!!

VRMN
Link Posted: 7/31/2009 12:00:02 AM EST
Originally Posted By VRMN8R:
Forgot to add Im 42.
A Roth IRA is what I was contemplating.
They tax that before it goes in correct?

I was also thinking of trying to do some stocks but I know absolutely nothing about it.
A friend and I were talking about Walgreens. Seems like they are always putting up new buildings everywhere. Mind you, this was just a thought.

And thank you for the input!!!!

VRMN


You contribute to a Roth with after tax dollars and when you withdraw the funds, they are not taxable. Another beauty is there is not a required minimum distribution at age 70-1/2. Be aware there is an income limit on the ability to contribute to a Roth.
Link Posted: 7/31/2009 7:31:48 AM EST
Originally Posted By VRMN8R:
Forgot to add Im 42.
A Roth IRA is what I was contemplating.
They tax that before it goes in correct?

I was also thinking of trying to do some stocks but I know absolutely nothing about it.
A friend and I were talking about Walgreens. Seems like they are always putting up new buildings everywhere. Mind you, this was just a thought.

And thank you for the input!!!!

VRMN


As a novice, be careful about investing in individual stocks. Look into index and sector mutual funds until you get more experience, and have learned a lot about risk and diversification.
Link Posted: 8/1/2009 12:26:43 PM EST
Thank you for the insight!!!!
Link Posted: 8/1/2009 2:59:53 PM EST
Roth IRA has nothing to do with your employer.

Just open an account with a good investment firm and send them a check!

RF
Link Posted: 8/2/2009 10:18:12 AM EST
[Last Edit: 8/2/2009 10:23:34 AM EST by hicap]
first it depends how old you are, being 42, you are not that young anymore, but you have a while until retirement and have some serious catching up to do so you need to get quite agressive

For starters, you should get in the 401K immediately and at a minimum you should contribute what it takes to get the full company match

a common match is 50 cents on the dollar up to 6% of salary (but this can vary of course by company) - thus if you are making 50K, you will be putting in 3000 and your employer will be putting in 1500

but i would not just be putting in the minimum if you are young, i would recommend setting aside as much as you can afford, 10-15% of salary if you can swing it - time is on your side, the effect of compounding interest cannot be understated and is greatly enhanced by the more you put in and the longer you have it invested

you should not be afraid of the stock market in general if you are young regardless of what all the doomsayers are saying these days - the market will rebound, and you cant time it so, just get in and stay in, dollar cost averaging into the market every month

i would select a combination of growth, growth and income, international, mid cap, type funds, maybe some bond funds - also be wary of having too much invested in your company's stock

as far as individual stocks, invest in companies that pay a dividend and have a history of increasing that dividend every year - look into oil, utilities, consumer discretionary - generally whoever the leaders of a particular industry are - you mentioned Walgreens, i would consider them a leader in their industry, but do some basic research
Link Posted: 8/2/2009 3:39:49 PM EST
Originally Posted By TaxPhd:
Originally Posted By VRMN8R:
Forgot to add Im 42.
A Roth IRA is what I was contemplating.
They tax that before it goes in correct?

I was also thinking of trying to do some stocks but I know absolutely nothing about it.
A friend and I were talking about Walgreens. Seems like they are always putting up new buildings everywhere. Mind you, this was just a thought.

And thank you for the input!!!!

VRMN


As a novice, be careful about investing in individual stocks. Look into index and sector mutual funds until you get more experience, and have learned a lot about risk and diversification.


I aggree. I would start by investing in SPY and DIA. Spy is the standard and poor 500 index. Two-thirds of managers cant beat it, so I think its gotta be good! It is an ETF and trades like a regular stock. You dont have to pay a fee to buy or sell it, except for the brokers commission. DIA is the Dow jones index. You can buy gold and silver ETF's, bond index ETF's (BND) and stuff like that. I would invest 90% in ETF's and 10% in stocks you think you can do good.

Just because walkgreens are going up everywhere doesnt mean they are making any money. That all can be financed by debt and possibly hurt them and drive them into bankruptcy later.
Just a thought
Link Posted: 8/3/2009 7:29:21 PM EST
[Last Edit: 8/3/2009 7:29:30 PM EST by VRMN8R]
THANK YOU!
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