/biz/ - Business & Finance

[Anonymous No.57635570]

Just started a 401K at my job. How much should I invest? 5%? My employer matches

[Anonymous No.57635577]

the maximum allowed obviously
why would you pass on a double money cheat?

[Anonymous No.57635739]

max your 401k so you have some peace of mind when you retire. also just invest in index funds.

[Anonymous No.57635783]

max it out do like 80% index funds 20% bonds

You can take out loans out it, the interest just goes right back into your 401k and you can use it to buy crypto

[Anonymous No.57635790]

>>57635570
Make sure you choose the type of stock that they buy for you. I’m stuck with 3k of useless mutual bonds instead of black rock index funds

[Anonymous No.57635820]

>>57635577
I'm passing on mine because I'm optimistic that I can get at least a 4x this cycle

[Anonymous No.57635843]

>>57635570
>1. Invest enough to get full employer match
>2. Open Roth IRA and max it out
>3. Max out 401k after maxing out Roth IRA
Do your investing in this order.
Roth IRA >>>>>>>>> 401k

[Anonymous No.57635892]

>>57635570
Only the match, and not a cent more. Max out $7,000/yr Roth IRA after 401k match, and then start investing in paying off your home.

[Anonymous No.57635907]

>>57635820
retard

[Anonymous No.57635912]

>>57635892
>prioritize paying off a loan no bigger than 8%

how about buying literally any non-garbage asset and getting orders of magnitude higher returns

[Anonymous No.57635919]

>>57635907
I'm up like 400k in the past few months with nothing but BTC exposure. Enjoy your index funds boomer

[Anonymous No.57637689]

>>57635912
What the fuck did you just say to me you drifter homeless nigger? Owning your home outright (sans property tax yeah yeah we all know) is the single best thing you can do to free yourself up to making "fuck you" decisions. Oh you get gibs for rent? Suck the governments dick. You rent with a job? Suck your bosses dick. You 'own' a home, but owe $250,000 mortgage on it? Suck the banks dick. When you own your home you get to tell jews to fuck off, and that's worth infinitely more than a few grand in returns.

[Anonymous No.57637697]

>>57635783
No need for bonds when you're young imo, just keep it 100% equities until you're 10 or so years from retirement

[Anonymous No.57639222]

>>57637689
I see, you are sacrificing possibly tens or hundreds of thousands of dollars in opportunity cost so you can roleplay being a homeowner despite the fact that there is no real detriment to having a mortgage. What you think is "sucking the bank's dick" is actually free money for any intelligent person who can put capital to good use and out-earn a low interest rate loan. Banks are losing money on every 2% mortgage they gave out. Current rates aren't much different.

[Anonymous No.57639396]

>>57635843
Unless your tax bracket is high, if so, max out 401k first.

[Anonymous No.57639593]

>>57639222
>Banks are losing money on every 2% mortgage they gave out.
I'm going to pay my 2.9% mortgage off as slowly as possible, fuck the bank

[Anonymous No.57639903]

>>57639593
based

[Anonymous No.57640017]

>be me
>talk to spouse coworkers
>they don't contribute at all
>explain to them they're literal FREE MONEY from their employer through match
>they still don't understand
financial illliteracy is a bitch, same kind of people who have lots of CC debt and don't understand they're getting absolutely fucked

[Anonymous No.57640074]

>>57635820
Sounds like you don't make enough money if you can't get the free match and gamble enough

[Anonymous No.57640164]

>>57640074
I make around 140k TC, not really relevant anyway. It's simply irrational to allocate money to a 2x when my positions have a reasonably high probability of going 4-10x. I also have 100k worth of personal loans at 30% interest that I refuse to pay off. Because I strongly believe I'll never get an easier investing opportunity in my life than the next 1-2 years.

[Anonymous No.57640245]

>>57635570
Max out the employer match. It’s free money anon. You can always cash out early or pull a 401k loan if you want to do other things with that money later.

[Anonymous No.57640289]

>>57640164
The thing is, if you had a 401k you’d be able to leverage that during this bull run too. That’s what I did. I have a comfy 401k that I’ve been contributing to with employer match. Last sept, I withdrew half of it as a 401k loan. It’s me loaning myself $50k to buy BTC and shitcoins. Payments including interest go back into my 401k account. Worse case scenario is I lose my job and don’t pay it back. Oh well, I don’t owe myself $50k anymore, I just have $50k less in my 401k.

[Anonymous No.57640529]

>>57640289
Interesting idea.
>contribute $100, after match have $200 in 401k
>withdraw $100 at 8% interest
The net result is that I have the same $100 I started with, but I'm also paying $8 annually to get $100 in my 401k. Sounds good. There is some friction since I can't do take out such a loan on every paycheck. I might do it regardless though, thanks for the suggestion.

[Anonymous No.57640542]

>>57640289
Interesting idea.
>contribute $100, after match have $200 in 401k
>withdraw $100 at 8% interest
The net result is that I have the same $100 I started with, but I'm also paying $8 annually to get $100 in my 401k. Sounds good. There is some friction since I can't take out such a loan on every paycheck. I might do it regardless though, thanks for the suggestion.

[Anonymous No.57640543]

>>57637697
Depends, maybe he thinks equities have topped and wants some cash to buy the bottom.

[Anonymous No.57640570]

>>57640542
Although assuming it's a 5 year loan and I'm paying $8 every year with 4x opportunity cost the first 1-2 years, I'm really paying almost $90 to get $100. Almost not worth it, and definitely not worth it if the opportunity cost is 10x.

[Anonymous No.57640591]

>>57639593
>fuck the bank
do you dumb chuds seriously think conventional mortgages aren't immediately sold off to fannie and freddie?
lmao that mortgage is owned by you, the US taxpayer
the only thing "the bank" is getting is pure profit off of servicing your payments and skimming interest off the top of your escrow payments

[Anonymous No.57640646]

>>57635570
invest it all in btc or lrds. thats a good combi bruh.

[Anonymous No.57642329]

OP here. My employer will match my 401K after one year of working there (just started). But they will back pay the first year in one lump sum fortunately. They max match contribution at 5%.

[El Arcón No.57642481]

>>57635570
>401K at my job. How much should I invest? 5%
These numbers seem to refer to my 503 room number and the nearby rom on the fourth floor.

[El Arcón No.57642501]

>>57642329
>(just started)
This seems to refer to the suddenly MUCH LOUDER BANGING on the ceiling of my room.

[Anonymous No.57643071]

>>57635820
based self-believing retard.

[Anonymous No.57643134]

5% is light, most people would probably recommend 10-15%. But just doing the company match would put you ahead of most normies I'm sure. Plug your salary, percentage, and a realistic rate of growth in a retirement calculator and see what it could become by the time you reach retirement age. I'm sure it would be at least a million if your income isn't really small.

Also consider a Roth 401k if your employer has the option. With a traditional all your capital gains (which is going to be the majority of the growth on your money invested in retirement if you're starting off young) will be taxed at the regular income tax rate when you take them out. You might as well just throw it all in a regular brokerage account at that point, at least that way you'd be paying long term capital gains which is generally lower than income tax rates. With a Roth you pay the income taxes now but then the gains are tax free when you pull the money out at retirement. If your money in retirement grows to millions of dollars by the age you can start withdrawing from it, that's significant. I'd rather pay income taxes on the $12k a year I'm putting in retirement now than $100k/year or whatever I'm taking out during retirement to live on after the money has grown significantly. I think the employer match portion still gets taxed as income at withdrawal, though.

[Anonymous No.57643201]

>>57643134
This is my first real job. I’m 29 and now making $110k. I have $50k in student loans. Please tell me what I should do.

[Anonymous No.57643213]

>>57635820
same here anon, fuck boomer investments, if i haven't made it by 60, then i've probably an-heroed. i need a 4x from here and ill be in 7 digits.

[Anonymous No.57643227]

>>57640289
> Last sept, I withdrew half of it as a 401k loan. It’s me loaning myself $50k to buy BTC and shitcoins. Payments including interest go back into my 401k account. Worse case scenario is I lose my job and don’t pay it back. Oh well, I don’t owe myself $50k anymore, I just have $50k less in my 401k.

Fuck, i should have done this. Nice one anon

[Anonymous No.57643229]

>>57643201
Rice and beans, what city do you live in?

[Anonymous No.57643244]

>>57635843
Based solid advice giving anon
Though if you have an HSA, max that before the 401(k) but after the Roth

[Anonymous No.57643252]

If you contribute less than 15% to your retirement you're an idiot. Spend another 5-10% on personal investments.

[Anonymous No.57643257]

>>57643244
listen here you little cuckhold when its all said and done ill be a honey badger millionaire and ill be driving a honey badger themed limo with a honey badger themed interior and a honey badger themed driver who i dont even pay and he has my honey badger themed baby mama and my honey badger theme kids in the backseat and you will still be some stupid normie making $110k and eating rice and beans while i have a 300ft yacht in the carribean where my honey badger harem of 15 10s live

[Anonymous No.57643364]

>57643257
spam bots getting by the gay captcha timer is impressive

[Anonymous No.57643663]

>>57643213
If your deadline is 60 years old then you would make it with boomer investments. The market averages a 2x every 7 years historically. As far as this cycle goes, I think the easiest >4x is the 2x btc etf BITX. Seems practically free. I am also neck deep in BITO calls expiring 2025. Feels retiring in my 30s is within reach. Crazy to imagine.

[Anonymous No.57644034]

>>57643229
Miami. But I’m moving to nyc later this year.

[Anonymous No.57644295]

Why are you moving? Will you get a better pay? Rent might fuck you in the long run.

[Anonymous No.57644311]

>my 401k is just Coinbase stock I bought at an average of $82 and Cleanspark stock I bought at $6
Kek I'll swap the Cleanspark for Microsoft either a month after BTC blasts through ath or a week after it gets brutally rejected

[Anonymous No.57644339]

>>57644295
My job needs me to move to nyc. I’ll negotiate for higher salary after my first year. I’m effectively taking a pay cut to move there but it will be a career decision.

[Anonymous No.57644381]

>>57640591
You aren't wrong, but it's better to make money from interest on the money you'd pay your house off with otherwise.

[Anonymous No.57644410]

>>57644339
Not to sound like your father or any other boomer you know, but think it through. You are 100% expendable for them and they may tell you about a raise just to keep you around and use you while you are cheap. Have you thought about how much you are going to pay in rent, food, gas, etc? If I were you I'd create a spreadsheet and see how far my pay will take me, because $110,000 in NYC is not a lot.
I already went through this dance around a decade ago. Was working in Washington for a big engineering company making around $85,000. They kept tell me to wait for a raise even though I was underpaid when offered that same job, and I did because it was a comfy work for a while, but comfy doesn't pay the bills. Once the last bullrun started it didn't seem viable to keep investing so I quit and moved back home while my gains allowed me to not stress about not having an income for a few months. In hindsight I was lucky and should have been more prepared, but I was 26.
Not saying we are the same, but it would have been nice to hear this from someone else back then.

[Anonymous No.57645410]

>>57635570
15k is enough, that's the amount I put on everything if I want to make money fast, although now I'm doing long term with BIGMIKE, feeling silly lately.

[Anonymous No.57646016]

>>57635570
make it an even 200% then

[Anonymous No.57646290]

>>57646016
Just ape my entire salary into 401k? Sounds based ngl

[Anonymous No.57647761]

>>57646290
The match is typically capped at something like 5% of your income. No reason to contribute past that.