Thanks. After living with parents for 5+ years after college, it really feels well earned!
were you just making an example or are you actually aware of companies offering 100% match on 6%? cause i havent seen any. They're usually 50 cents to the dollar for the first 6% or half of the first 6% up to 3% and all this annoyingly confusing shit.
At my current company, they offer 3% Safe Harbor which doesn't require me doing anything and it's fully vest right away. For the other 3%, it's contribute 6% and receive 6% @ 50 cents on the dollar. I also get an extra 2% with company profit sharing as long as company did well. So effectively, I put in 6%, I get 6-8% back.
If your company match TAKE ADVANTAGE of that. It's basically free money they are giving you if you put money in your retirement fund.
The thing with that is I think I started 401k with a different company that I worked at and then I left that job. Does my 401k continue with a new employer if they also offer it?
What you invest already stay in the old 401k (still yours). The 401k with the new comapny would be a new one. You can have multiple 401k.
*raises hand* The company I work for does a straight 100% match up to 6%. I just checked the math against my 401k site to be sure I wasn't misremembering. Not common by any means, but it does happen.
Some companies allow you to rollover your previous employer 401k into the new employer 401k.
A million dollars is rich to people who make less than 150k a year. Just on basic interest you can retire on that plus social security. To me that's rich. The word rich can stretch to whatever you want it to but having your money allow you not to work is fucking rich. Now maybe not for a couple but for 1 person a million cash/invested is rich.
The only problem I have with this chart is really you need far more tonretire with than 500k. I'd be scared shitless to retire with only that much in the bank. Double that at minimum.While you're young invest and take advantage of compound interest
4. i'd roll that 20% into #2, but only after putting together a rainy day fund in a high interest savings account.
I save significantly less than that and still invest. The only real benefit you won't be able to do at a lower income level when investing is DRIP-ing your investments (basically using your returns to automatically purchase more of a stock/ETF/index) so as to compound and maximize your quarterly/yearly dividend earnings and value. And even then, there are low-cost options available that you can DRIP and still have that going, albeit not returning you the same amount. The low-cost options are typically recommended for starter investors anyway since they're not as volatile and offer brokers price/value stability.
