In modern times and modern economy, is having a 401k still considered a smart investment?
>>1162851
No. Never was.
>>1162851
No. Keep it all in a mattress. :^)
if your employer doesnt have a goddamn vesting period, its great. fuckers always forget to mention the vesting period when giving a salary offer
>>1162910
It doesn't even fucking matter. 401ks are extremely advantaged even without employer contributions. Money in a 401k is much better than money in a taxable investment.
>>1162922
i mean yeah, it works well for people. i think i saved a couple hundred using a 401k instead of investing on my own, since i think 401k deductions dont count towards your taxable income
>>1162851
depends entirely on your employer. i'm maxing out mine, since:
>i pay 18k, employer pays 9k
>no vesting period
>straight to vanguard target retirement date account
it's hard to beat a guaranteed 50% return
If you put 5% of your paycheck into a 401k, you'll barely even notice it and before you know it the thing will be huge. Totally worth.
>>1162951
I have the same matching plan. I usually just front-load the 401k with my previous year's year-end bonus.
On top of the immediate 50% gains, we also have access to VIIIX. 0.02% expense ratio-- ordinarily a $200M minimum investment.
honestly passive investing in tax advantaged accounts is the ONLY purchase of securities I've bought into
I'm not sold on doing the same thing beyond maxing 401k and IRA
>>1162925
Oh honey...You got a traditional 401k, meaning it's not taxed until you take it out, and you'll likely be in a higher tax bracket when you take it out. You didn't save money, you lost it.
>>1163909
>house paid off
>kids are grown up
>social security supplements income and medicare covers healthcare
hey faggot riddle me this
why are tax brackets gonna be higher if social security and medicare will "no longer exist as we know it"?
>>1163909
Hey moron, it's not just the money you contributed to the 401k that's tax deffered. Your growth is as well - you don't have to pay taxes on capital gains, dividends, or other distributions.
Not to mention what >>1163918 said - most retirees end up in a lower tax bracket once their salary ends and they're living on other forms of income.
>>1162851
So long as your company matches
>>1163933
Full retard
>>1163909
There are some advantages and strategies behind either going with a roth or traditional. Personally, I'd split it 50-50 and just mitigate the risks both have.
If the country takes a more socialist stance then you'd expect tax rates to be up and probably some laws that'll prevent people from having lower taxes on their accounts because their ending salaries are lower or they just hop around tax brackets by working a minimum wage job for a year.
On the other hand, if social programs get abolished along with other public programs and the country takes a more conservative stance then you'd be better off with the traditional since tax rates would probably be a lot lower or flat.
If I had to pick one I'd prefer roth, I'd rather get the taxes out of the way while I'm in a low tax rate bracket to begin with.
>>1162851
Also having an IRA/401k is smart in general. Anything that avoids taxes is huge and there are always going to be taxes. The government is always going to need funds and the common man is their best source. Being able to protect your money from even just a 10% tax rate is huge.
I like the 401k envelope, but the traditional investment vehicles are a scam. Boggle was right.
I do a self directed 401k and invest in what I want.
>>1162851
Not after the impending securities and bond market crash thats coming, new government taxes of investment accounts and increased tax brackets at your retirement age. Its a scam and always has been one to shift the burden of risk in managing employee retirement accounts and inflate the equity markets
>>1163909
fed income tax rates have actually declined over the past 30 years
>>1163967
>the traditional investment vehicles are a scam. Boggle was right.
Can you clarify what you mean here?
I'm guessing you're referring to most plans having only a select group of funds to choose from, leaving you stuck with high expense ratios?
>>1163956
>common man
401ks are designed for the "common man". Also, 401ks aren't tax exempt. They're tax "deferred". You WILL be taxed on contributions and earnings with a 401k.
>>1164003
Somethings better than nothing is the point here
