/biz/ - Business & Finance

>>51203184
I'm a firm believer that everyone should contribute to their 401k, but you have to do it the right way.

First of all, you should do a Roth 401k where you pay the tax up front. That way you're paying taxes on the $200 per week you're putting in instead of the $2 million you'll have when you retire.
Peter Thiel has something like $5 billion in his Roth IRA account, and the government can't touch it.
Most people just set up a regular 401k account and don't do a bit of research beyond what some braindead retirement consultant tells everyone to do.

The other part you have to do is look through all the different options available to contribute to. just selecting the "2050 Retirement Fund" and thinking you'll be fine is the worst thing you can do.
See what funds have the best track record and also have the lowest yearly fee associated with them.
Personally, I divide my contributions up into 4 places:
30% S&P500 Fund
30% Large Cap Market Fund
30% Small Cap Market Fund
10% Bonds

Pic related is a really good book that lays all this out exceptionally well.
My uncle retired in his 50's with a very comfortable amount of money becuase he was very consistent with his money. He never made more than 100k/year and raised 2 kids through college.

He also put a decent amount of money into the stock market during the 08 recession that helped put him over the edge when it was time to retire.

We're all here hoping to find the perfect 1000x that will take us out of wagie slavery hell, but we all need to be just as diligent with a plan B that we slowly work toward.