Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

I will be switching my 401k contribution back down to the min and opening a roth account... then once the employer match kicks in, I'll just contribute enough to max out the match for my 401k.

EDIT... nvm, I can do roth contributions in my 401k.

 

Honestly, it’s really just a scam in my opinion with the whole 401k deal. I know people always push investing in the stock market for retirement, but many people have debt that they pay interest on, yet they put away money into the stock market. From my research, it’d be better to pay that debt off due to the interest, and then just save. You also get access to the money if you ever need it, whereas the 401k you can’t touch til later on.

Now before people start spewing that the stock market always goes up over a long period of time, blah blah blah. Thing is, the Dow number you always hear about is only 30 companies, and here’s the catch, whenever a company drops a lot, they get removed from the Dow and replaced with another company that is doing well to “prop” up that number. A company that comes to mind recently was FTR.

That on top of the previously mentioned tax which will probably be more since you’d hope your 401k is bigger than what yo put into it.

There’s a concept in business called “time value of money” where it states $1 today is worth more than $1 tomorrow. That’s how I see it.

On top of that, there is a timing issue. If you withdraw your 401k at a downturn, you’re screwed cause not only did you put away money, but you also lost money, and then have to pay taxes. I see this occurring with all the baby boomers that will start withdrawing money over the next few years as we e past the peak of the market so a downturn is inevitable the next few years. Not keeps going up forever.

 

Interesting. Yeah, that's why I am just going to take advantage of the match and that's it. I will put the rest into a roth contribution. I would rather be taxed now, rather than later. I don't have any debt so that's a non issue, but I see where you are coming from. It's all about maximizing your money.

 

Yeah from what I can decipher, I think the baby boomer generation is required to start taking out their 401k around 70 yrs old otherwise they get a penalty. With that many people withdrawing in a short period of time, there has to be a downturn in the value of the market. It’s really almost like a ponzu scheme if you think about it. Kinda like Social security ( don’t get me started on that one). There has to be new money pit in all the time.

 

welp I dropped Roku since they weren't doing crap for me, doubled down on VSTO.

 

Wow, this might actually be the crash we’ve all been waiting for..... like a slow motion train wreck. Keep the powder dry and ready!!!

 

Right. I only lost 1% today. Mainly I blame Roku before I sold it lol

 

If your company does not have a sponsored 401k that they match employees contribution, I would max the Roth IRA first for you and your wife. Then put any additional funds for saving into a 401k/403b. If time is on your side, you will benefit greatly from compounding.

As far as paying off debt vs saving, it depends on the interest rate your debt has. It may actually be cheaper to keep the debt than pay it off first.

 

More like a pyramid versus a Ponzi as I see it

 

IF you use it that is. Use it or lose it.

Fortunately I have options. My plan renews Jan 1st and I get $800 a year given me to use or lose. I know I can burn that down just in what my wife takes for meds.

Her company renews July 15. She's on my plan but can also set up a FSA if she wishes. So by then we know where the $800 I'm handed is or will be going.

$1200/mbr/cal yr deductible plan. I work there.

 

Required Minimum Distributions (RMDs) start at 69.5yrs old. Interesting thing is that although distributions are required at that point, the after-tax distribution can be put right back into a non-retirement account, such as an individual brokerage account.

 

FSA is use it or lose it. HSA is not like that.

 

Netflix can't stop won't stop.. I need to get in on this

 

Be very careful trading today..... s&p closed at the same level it did in early February, so a bounce was expected.

 

Some of my stocks are already taking a shit today so I'm not seeing any bounce today.

 

Yeah, market is already fading. Peaked at +500 and all downhill from there.

Lower highs, lower lows

 

yep.. too bad I sold it already lol

 

might be a good day to do it lol

 

good luck to ya. Gonna be a bumpy ride

 

You got bigger balls than me