| 401k...Where does everyone stand? |
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bim94
New Member
Cash: $ 1.55
Posts: 7
Joined: 19 Jan 2007
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| 401k...Where does everyone stand? |
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I have questions regarding my 401k and everyone else's. I am 30 and have been contributing to my 401k at work for 7 years. When I started at my present job, age 23, I had nothing. Using the advice of boards like this I contributed as much as I could, often reaching the IRS limits. Now, having less available funds (SEE "MARRIED" BELOW) I contibute nothing, choosing to max out Roth only. My company contributes 15% of my income (on average $50,000) or around $7,500 per year to the 401k whether or not I contribute at all. I am 100% vested, my balance in the 401k is $150,000.
Long story short. Recently married, with 2 children, and much more time constrained, I am looking to take a posititon with another company. This posititon is more of a lateral movement with regard to salary, other benefits, and responsibility, but will require much less hours. Assuming the retirement benefits are much better at my current job what is your take? Is it worth leaving? Where does your retirement balance stand at your age/family status? What does your employer contribute? Any response is appreciated. Thanks in advance.
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Fri Jan 19, 2007 2:21 pm |
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No-Brainer
Senior Member
Cash: $ 66.65
Posts: 907
Joined: 29 Dec 2005
Location: Oregon USA
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Sounds to me like you have a great start no matter what you do now. Won't it keep growing anyway?
As for me, I already retired at 62 and now reached 68 and doing fine. Unfortunately I didn't work for a company that had a 401K and lost all my stock market interest when Intel tanked and it cost me $35,000, so I bailed out.
I did however own my own company the last 35 years of my working career and had enough sense to buy a building to run it in. I bought it personally and leased it to the company, so they paid it off and now I get the proceeds from the sale on a contract for monthly income.
I sold my software company to my head programmer and he pays me a monthly payment too, then I started a network marketing business online and get a nice residual from that. I also play around with my Ebay store and it's growing, so I'm not too worried about making it. In fact, I have more income now than I ever did when I was working.
Now I spend most of my time relating with other people who want to make money from the Internet in Forums like this one and myLot. I try to expand on all that with websites I create in my spare time like <deleted> which is my own domain.
I think I would have prefered doing it your way, but all of us don't have the option of a financial plan that solid. Best of luck to you.
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Fri Jan 19, 2007 2:44 pm |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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It is pretty good that they contribute $7500 whether you contribute or not. My company just matches the first 3% of our salary up to $1200. But we have decent investment choices (my total mix including contributions more than doubled in past 3 years).
If you do move to a new employer you should check what your options are for your existing 401(k). You might be able to leave it there (but not contribute) if they have decent investments. Or you could roll it into an IRA and/or at some point either old 401(k) or IRA may be able to be transferred to new employer's 401(k). But make sure that any transfer is a direct trustee to trustee transfer so there is no withholding. If a check is made out to you, there is manditory 20% withholding that would be taxed and penalized if you do not add that (~$30k) back in from another source when rolling it over within 60 days.
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Sat Jan 20, 2007 4:12 am |
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