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ah, yes, the latest on my company 401K
"Jim" wrote in message ... nom=de=plume wrote: "bpuharic" wrote in message ... On Thu, 22 Jul 2010 10:14:04 -0700, "nom=de=plume" wrote: "bpuharic" wrote in message ... On Thu, 22 Jul 2010 11:32:25 -0400, wrote: you know **** about business. if what you say is true, then why is the economy a disaster? answer: because too many people believe as you do. Not sure how old you are, but if you're in your late 40s, there's still time to have a shot at a decent retirement income. that's true. unfortunately i'm 55. it's going to be a long hot summer You might want to consider alternative instruments, such as a modified whole-life insurance policy. They're not just about death benefits. There are some that will give you a payout that is tax-free income between say 70 and 85, and still leave you some cash balance without taking away from the death benefit over much. I'd suggest talking to a reputable agent, e.g., New York Life or another of the biggies. i'd thought about that but the matching from my employer's 401K is pretty good...i also have been talking with my funds manager about the slowing of the economy to see where we go from here. At 55 you'd still see some benefit but it wouldn't be as good. I'd definitely fund your 401K with the match but no more. The problem is that taxes will increase, and you're going to have to take the money out at some point. Even if you can offset somewhat, it'll still help. Bad advice. With catch-up he can put $22k this year in the 401k. He should be maxing that to shelter it from taxes. Nope. Right now, taxes are low, so it's doubtful that a it'll push him into a higher bracket, and even if it does, you're talking about a couple of percent. The future is much more uncertain, but it's very clear that taxes will likely go up, and as a retired person, he should be minimizing his tax exposure. Even if it's money market with no return. ?? That makes no sense at all. The feds won't let MM go below par because the economy would collapse. That tax savings is money in the bank. ?? There tax savings of investing in a 401K is minimal at this point. Maybe about 5 grand for him. When he takes it out upon retirement he'll be in a lower or no-tax bracket. Actually, that's doubtful and thee money he'll be taking out will be much less than he's likely to be used to living on. By putting money into something that basically gives you back your own money, you can take it tax free and mitigate what will have to come out of your 401k/ira and be taxed. Save, save, save. Then you die. Amend this with, save, save, save, spend, spend, spend, die, get a death bene for your heirs. Or you could gamble with equity funds. But don't cry about it. Jim - Financial whiz kid. Hey, I ain't broke or complaining. I'd suggest talking to a qualified financial advisor who gets a fee vs. a percentage, and not listen to me or anyone else on this newsgroup. I also wouldn't rely on "fund" managers. They've got an axe to grind also. |
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