ROTH vs Reg 401k, I don’t think it matters here’s why

Yes, myself that was committed to get out of the fire early, & co-worker who doesnt have a plan, doesnt think thats a problem, there will always be time to start later, until its too late....
I see it everyday, its not just one individual....
I hit the finish line at 52, made it a priority....

Might as well not even start if all youre going to do is contribute the bare minimum to make yourself feel better...

I preach to my friends & co-workers, try to show them the way to freedom vs working forever....
I came from nothing, my parents lived paycheck to paycheck...
Just a blue collar dick that had a skill & worked hard...

 

So many people say 401k doesn't work. You have to work IT. Make your money work for you. Don't blow your money, don't live beyond your means. Don't pay CC interest, or bank fees.
(Today learned my 31 y/o nephew just spent $75k on a brand-new Super Duty F250, , pretty sure he makes less than $100k/yr).

Now early 60's but started my 401k late 20's. Started by ensuring I always got the match. Over time increased contribution at least 1% each year (out of my raise) until doing 15%. Just rode out the drops in '00, '08 and '20. Got retired at 58 when my site was shut down. realized I can get enough to pay my few bills and do a bit to travel each month without touching the balance. Eligible for SS in a few months which will be a nice little raise when I decide to start collecting. Not Rich but not complaining.

I didn't know anything about money growing up. Early 30's I read the book "The Millionaire Next Door". It literally changed my life. So much so that I bought copies and gave it to all my family members the following Xmas, of course none of them read it. It's dated now, but I strongly recommend this book. Be strategic with your money over time. Best Wishes to all.

Posted here because my wife said I can't tell my nephew he's a dumbass.

 

I cant express enough how important it is to have a plan & consistently save & not be mr jones...
Yes lately ive been blowing un-necessary money on this new toy of mine but Ill hit the finish line & be done,
I killed myself for a long time & made sacrifices to get where im at today financially...
Im not some high-roller $200k a year white shirt, just a mechanic....
Growing-up my old-man would yell at me, save your money, quit buying that shit, your wasting your money...
But thats as far as it went, they didnt invest.....

I started my one & only career, worked at the same dealer my entire career....
2 old timers pulled me aside, first week I started...
You need to invest your money, nobody is going to take care of you when youre old, you need to buy index / mutual funds & keep at it, you better get involved & take advantage of the 401k, & not just the bare minimum, bla, bla, bla....
There isn't going to be any social security when you get old & nobody is going to take care of you when your old & have no money....

Well, that really set the momentum....
Started cranking up my 401k contribution when I saw the snowball effect, the power of dollar cost averaging, compounding interest, etc....
Like I said, before I left I was up to 27%....
At 20 years old, I went to my tax guy who also is a financial adviser & we set-up a auto deposit into an IRA, $250 a month & just let it roll, never quit that.
This was while I was starting out as a helper making $7.50 an hour....
After I paid off my house in my 40's $2k a month went into the market, the house payment....
all my $8k+ yearly tax returns got invested...
All my extra savings got invested...
I didnt have an emergency fund, it got invested as you always have access to it if its truly an emergency....
I have an adviser as the info thats readily available now, wasnt available then....
same adviser as when I was 20....
Vanguard & their low expense ratios & index funds are your friend.....

At 51, im done....
I dont want to say how much I have, but its crazy what consistency has done for me....
Truly blessed & I had the F-you money I needed due to stay the course & consistency......

 

I did the same as the last seval posts. All raises and overtime went to savings and company match. No stupid purchases. Drive our vehicles for 15 years as well as fixing our own vehicles.

Retired at 52.

My last 10 years I maxed out my allowed contributions before the end of each year. The last 2 paychecks of the year were very nice with only taxes and insurance removed. That extra $ was sent to the emergency fund (high yield) savings account. It was at around $50k when retired.

Things are a bit tight since I got a few years to 59.5 and can give myself a raise.

Presently using the 72T program to get me to that age.

Even though I've contributed zero $ money for the last 5 years, the account has in creased substantially.

 

I used to do that, but I stopped immediately when I realized I was screwing myself out of company match by doing that. To maximize the company match, at least at my employer, you need to have 401k contributions each paycheck. Otherwise those last couple of paychecks don’t get you the benefit of company match.

 

Yeah, my 401k contributions would stop in October as reached max for the year....
No worries for me in-regards to not optimizing your match, as I didnt get a match, ever....

This would give the idiots an excuse to why theyre not contributing to their 401k....
Ive heard it all...