/biz/ - Business & Finance

[Anonymous No.24460982]

Am i just retarded or are these things a giant waste of time unless you're employer is putting most of the money in? Why the fuck would I want to lock my money away until I'm too old to do anything with it?

[Anonymous No.24461166]

>>24460982
may as well the money is going to be taxed anyway.
not only that, it's your retarded mindset that gets you to the age of a boomer with no savings and you're going to be miserable.

do what you want to do, but to me it's retarded not to put away money. I'm aiming for 100k @ 30

[Anonymous No.24461258]

>>24461166
Having someone else hold for you and not being able to touch it until you’re old as fuck....And you don’t see a problem?

[Anonymous No.24461381]

>>24461258
I guess you shouldn't have any investment accounts with any company and should simply keep your money under your mattress

first off, its an insignificant amount out of my weekly paycheck if $100/wk pretax is a lot of money to you, I think you should focus on getting a better job before worrying about your 401k.

Second off, if I do live to be that age I'd rather be in control of my own destiny than rely on social security. I'm sure a dumb fuck like you will say it's not guaranteed to be worth anything in the future and I could lose it all, but who gives a shit? I'd rather take a 50/50 shot at living life in old age with some dignity than a fucking poorfag.

I think your misconception is you think these retirement vehicles are meant to get you rich, it's not about being rich. It's about maintaining your lifestyle in retirement and living with dignity.

[Anonymous No.24461382]

>>24460982
Corporate goon here to explain why we have these devices. So, the idea of the 401k is that you pay no taxes on the initial investment, thereby allowing the initial investment to gain more interest via the percentage that would have been taxed, instead gaining interest also. This produces a cumulative effect over long periods of time, ie 20+ years. You only then pay taxes on distributions (money you spend) so the entire time the tax free money is still gaining dividends. Its a great way to hedge against massive swings in your income level and fairy safe because even if the market crashes, you lose nothing until you spend it. I lost about 20gs in March, but its all gained back by October., and now I've doubled my cash again, all while still paying no taxes on it. Its also a great way to manipulate your tax bracket, because money you put into it is reduced from you taxable income, which you can use to decrease your overall tax bracket and pay even less to the govt.

[Anonymous No.24461430]

>put all money into a retirement savings account
>grow to old age only to realize that retirement is an outdated archaic concept and robots do everything for humans now anyway

[Anonymous No.24461453]

>>24460982
Its literally free money. My employer matches up to 5% my paycheck. I'm not sure if 401k works the same way as my government equivalent TSP but income put into it directly lowers your annual income which can put you into a lower tax bracket.

[Anonymous No.24461532]

Roth’s, IRAs, and 401ks have at MOST 3 years until the entire thing explodes and your money is gone. The biggest rug pull in the history of humans is about to occur and people are STILL contributing to this day.
Yank your money ASAP, take the tax penalty and go 100% BTC. This is your only chance.

[Anonymous No.24461545]

>>24461381
you won't even be in control of your own bowels

[Anonymous No.24461685]

>>24461532
I unironically did this recently. I pulled my entire 401k (no IRS penalty due to Covid) and invested all of it into crypto. My return so far has been over 150% in 3 weeks? My returns on my 401k over the past 5 years? 6-10%...

401ks are a fucking joke. Rich people don't give a shit about them

[Anonymous No.24461731]

Makes sense for plebs but if you manage your own finances I never understood why you would need one. Seems like they were created to essentially prop up the stock market with passive flows.

There was an interview with a hedge fund guy where he mentioned that every single market bottom in the past decade or so has happened on the 23rd of the last month in the quarter. This is the date when Blackrock/Vanguard reallocate their mutual funds. Imagine if that flow wasn't there.

[Anonymous No.24461823]

For $35 out of each week, I'm on track to have atleast 1 million when I'm 35. Sounds like a good deal to me. if shit ever gets bleak when I'm older I'll just cash out and eat the taxes.

[Anonymous No.24461894]

>>24460982
>tfw could've put significantly more money into Chainlink back in 2018, but fell for the "diversify" meme and put half into my Vanguard Roth.
My Link returns have exceeded about five years salary so far lmao, and is 1/3 what my Roth is projected to be at maturity with 6% returns average and max contributions. Idk what to tell you, anon. Take your employers match, but realize you won't ever "make it" with these retirement accounts.

[Anonymous No.24461941]

>>24461685
Kek. The thing is, the match and untaxed income is pretty sweet. Is there a way to gradually withdraw money from it? I wanna pull mine out soon since I don’t give a fuck about living past 50

[Anonymous No.24462001]

>>24461685
Did you have to pay a penalty for pulling it? How does that work, anon?

[Anonymous No.24462047]

>>24461685
Holy fuck I just looked into the CARES Act and I had not idea you could do this. I'm seriously considering this now

[Anonymous No.24462199]

>>24462001
>>24462047
need more info on this. wondering if I should pull mine out and buy some property.

[Anonymous No.24462238]

>>24461685
How do I convince my boomer parents to pull it? I tried before but they won't do it.

[Anonymous No.24462280]

>>24462238
Changing a boomer's mindset is near impossible, anon. Best let them be.

[Anonymous No.24462397]

>>24460982

Roth IRA - taxing the seed not the harvest. This is basically your couple grand a year, to ideally have a million or two (inflation adjusted) tax free waiting for you. Double check, but you can pull out contributions no penalty. So if down the road you're making it and want to enjoy some money you can pull out your contributions and not incur penalties.

401k is more about marginal tax brackets. If you're making more money and eventually hit a tax bracket where every dollar there after is going to be taxed at 25% or more, then you really want to avoid that drag by utilizing your 401k.

There are more restrictions to it but in some events you can withdraw some money - I also think if you leave/lose your job you can roll it over into a IRA and eventually pull out contributions but DOUBLE CHECK ALL OF THAT STUFF.

So for most people it's a way to stash a little over $25k a year with tax advantages.

For most people here, nobody thinks about generational wealth too so if its appealing to you then ideally you want to as much benefit as you can out of these tax advantaged accounts. A lot of others could give a fuck what their next generations get or worse, those generations just blow the fucking money.

I think it would be political suicide to fuck with those accounts, but hey, who knows what can happen. It would only hurt our nation much worse if we start fucking around and taking accounts like that from the population away or applying new terms to past contributions.

[Anonymous No.24462497]

>>24460982

Basically, pay off double digit interest debt immediately.

If you have like a mortgage or student loans decide anything over 8% still needs to be focused on.

After, the Roth IRA is good to max with it being a little more flexible and likewise taking a 401k match is generally a good decision.

ALSO NOTE:

I remember reading that a 401k's tax benefits is like adding a 1-2% gain to your account, depending on your marginal tax bracket.

Depending on the funds in the account and their fees, if you're in a tax bracket right now less than 15% and the only funds you can select have expense ratios over 1% then it's hard to justify the account except that eventually you could roll over account if you're out of that job.

[Anonymous No.24462506]

>>24460982
55 is too old to do anything?

[Anonymous No.24462592]

Only dumb fucking morons do this shit. Why in the whole would you put your money into an IRA Roth/401k. Never in human history did we have stupid shit like this. Never. This is a new concept that got boomers rich. This is money you will never see in your entire life and I mean never. My father retired at 48 and won't be able to touch that shit for 11 1/2 years. Also, by then, we all know this shit won't be around. Look at 2008/09. Those fuckers got washed out and had to go back to work at the age of 65. If these dumb fuck learn the markets themselves. They would've make 100x of their entire net-worth.

>>24462397
You need to go back to rreddit, that spacing is autistic as fuck.

[Anonymous No.24462660]

>>24460982
Treat it as a safety blanket, not your main source of wealth.

[Anonymous No.24462723]

I put in my 4% company match. Other than that they can fuck off.

[Anonymous No.24462776]

>>24462592
kikes can literally throw you in jail for memes like that

[Anonymous No.24462778]

A much better idea than putting small amounts of money in a 401k so that you can retire when you're 65 is to just make a lot of money now.

[Anonymous No.24462918]

>>24461941
No I don't believe so. To add I pulled money from my rollover IRA. I did not pull cash from my active 401k.

>>24462001
There is normally a penalty for withdrawing before age 59 (like 10% or some crap). That penalty has been waived due to the coronavirus (CARES ACT)
>>24462047
It's a smart idea during the crypto bull run.

>>24462238
Elderly people are very risk adverse, if they fuck up with their money they could end up dead before the age of 70. I highly doubt you can convince them. This strategy makes more sense if you are under the age of 40 or so.

[Anonymous No.24463024]

>>24462592
Strong meming, but true.
401k's are boomer as fuck. They were literally invented before and during a time period where annual gains were all but guaranteed year after year in the market. When businesses were actually profitable and had sane PE ratios. When real estate was affordable.
This has all changed now.
Here is the future:
> Gov sees your 401k
> You are rich, cancels your UBI
> You are rich and have assets, higher healthcare premiums (when single payer hits).
Zoomers and Millennials are seething at boomers. As they slowly gain more and more political power they will look to retake their piece of the pie denied them by boomers. Pic unrelated...sort of.

[Anonymous No.24463119]

do the tax benefits/ employer match even make it worth it when you could buy crypto and get like 100% returns?

[Anonymous No.24463335]

>>24463119
The employer match is always worth it. That is a guaranteed 100% return on any money that you put into it. Any money cash spent after the fact is not really worth it. As anons stated above, it's a safety net for low-mid income earners. Wealthy individuals do not care about 401ks. I think the cutoff is around 400k+ salary where the 401k loses importance. I;m not sure. There was a video that martin shkreli made where he was talking about investing in real estate and mentioned that he doesn't care about his 401k nor does he track it

[Anonymous No.24463421]

>>24463119
It just depends on the context of “worth”
A lot of chucklefucks will say it’s worth it because you “get” more money
But you don’t get that money until you’re already limp
Maybe if the company has a great match, you can do calculations to see if you come out with more by putting stuff in to take it out at a later date
But anyone who just wants “more” money without considering where you’re going, what you wanna do, how satisfied you are wageslaving to make number go bigger, go fuck yourself

[Anonymous No.24463453]

>>24460982
401k are superretarded. they are literally pension funds buying the most overvalued bluechip stocks lmao.
just invest yourself in stocks and do the research. easy.
401k managers are actual simps

[Anonymous No.24463484]

>>24460982
Don’t waste time on this boomer shit. Buy RSR

[Anonymous No.24463552]

>>24461381

This is why you are poor. You trust some jew to make money for you and not to keep the profits for himself. I make over 500 dollar a day through my investments alone.

[Anonymous No.24463605]

>>24461166
If im too old with no money someone will have to take care of me simple really
The united states isnt gonna let me end up homeless

[Anonymous No.24463619]

At least for me (~130k/yr) I save over 10k in taxes by maxing 401k/IRA/HSA. And that's with dead-simple taxes that don't take use of deductions you might get from home ownership/children/business ownership/etc.

[Anonymous No.24463932]

>>24461532
Fucking based

[Anonymous No.24463996]

>>24460982
defer taxes with 401k

roth contributions can be withdrawn at any time.

you can convert trad ira to roth ira at any time. you can withdraw the conversion amount in 5 years, ppenalty free

[Anonymous No.24464051]

>>24461532
200 IQ post.
> t. billion plus sat holder

[Anonymous No.24464070]

>>24462047
>>24461685

isnt there a Catch to the Cares act allowing yo u to pull fro mIRA penalty free right now?

like you have to pay the penalty later or soemthing?

[Anonymous No.24464237]

>>24464070
Not from what I read. The fee is waived but you have to report the withdrawal as taxable income. You can spread that out over 3 years though

[Anonymous No.24464274]

>>24460982
Well I do 5% contributions because

A) I'm a fed and the money's not going anywhere even in the bad scenarios described here
B)That's the amount of money my employer matches
C)It has tax benefits

That's why. All my other play money does go into safe cryptos for the most part.

[Anonymous No.24464334]

>>24460982
i tried to get my TIAA CREF retirement account out to put into XRP and the faggots will only let me take out 1/10 yearly

FUCK