OK got a question for all you investment guys. Starting a new job in 2 weeks, shifting from a small company to a big stable company. I'm taking a position with Goodyear as the Service Manager in Fleming Island. Anyways it's a nice little bump in pay but the real reason for the move is the insurance, they offer all the standard insurance we've been doing without while I worked at the mom and pop garage the last 6 years.
They also offer a 401k matching program up to 5%, but here's my question. My income isn't really high enough that I worry about "paying" income taxes, I get back more then we pay each year with 4 kids and I'm the only income. So there's no "tax" advantage to storing 5% of my income in a 401k, I do however want to be smart and not leave money on the table. As I understand it, doing a 401k I'm deferring the taxes until I retire, when I take that money out in retirement I'm paying whatever the tax rate is at that time. Now call me a pessimist but I'm pretty sure taxes are only going up. Is it still smart for me to take the money they're offering with the match and just essentially gamble on whatever the future tax rate might be. OR should I pay taxes on the income and invest the 5% on my own post-taxes some other way. If it's option 2 what's the best avenue for small investments?
Quote:OK got a question for all you investment guys. Starting a new job in 2 weeks, shifting from a small company to a big stable company. I'm taking a position with Goodyear as the Service Manager in Fleming Island. Anyways it's a nice little bump in pay but the real reason for the move is the insurance, they offer all the standard insurance we've been doing without while I worked at the mom and pop garage the last 6 years.
They also offer a 401k matching program up to 5%, but here's my question. My income isn't really high enough that I worry about "paying" income taxes, I get back more then we pay each year with 4 kids and I'm the only income. So there's no "tax" advantage to storing 5% of my income in a 401k, I do however want to be smart and not leave money on the table. As I understand it, doing a 401k I'm deferring the taxes until I retire, when I take that money out in retirement I'm paying whatever the tax rate is at that time. Now call me a pessimist but I'm pretty sure taxes are only going up. Is it still smart for me to take the money they're offering with the match and just essentially gamble on whatever the future tax rate might be. OR should I pay taxes on the income and invest the 5% on my own post-taxes some other way. If it's option 2 what's the best avenue for small investments?
I have no idea about the other stuff in this thread but I always put up to the match in the 401k at a minimum. Regardless of deferred taxes, that's extra compensation from your employer you are basically throwing away if you don't at least hit the match.
My 401k has gained well above any other forms of savings types accounts I could have had outside of actual investing by very large percentages.
Quote:OK got a question for all you investment guys. Starting a new job in 2 weeks, shifting from a small company to a big stable company. I'm taking a position with Goodyear as the Service Manager in Fleming Island. Anyways it's a nice little bump in pay but the real reason for the move is the insurance, they offer all the standard insurance we've been doing without while I worked at the mom and pop garage the last 6 years.
They also offer a 401k matching program up to 5%, but here's my question. My income isn't really high enough that I worry about "paying" income taxes, I get back more then we pay each year with 4 kids and I'm the only income. So there's no "tax" advantage to storing 5% of my income in a 401k, I do however want to be smart and not leave money on the table. As I understand it, doing a 401k I'm deferring the taxes until I retire, when I take that money out in retirement I'm paying whatever the tax rate is at that time. Now call me a pessimist but I'm pretty sure taxes are only going up. Is it still smart for me to take the money they're offering with the match and just essentially gamble on whatever the future tax rate might be. OR should I pay taxes on the income and invest the 5% on my own post-taxes some other way. If it's option 2 what's the best avenue for small investments?
If you're on the younger side of 40, consider a roth. You pay regular income tax going in (no deductions) but any money the roth makes you can withdraw down the road tax free. If your company has a 401K abd your company matches, make sure you contribute and match that part out. Matching contributions are free money although most companies have vesting periods.
Quote:If you're on the younger side of 40, consider a roth. You pay regular income tax going in (no deductions) but any money the roth makes you can withdraw down the road tax free. If your company has a 401K abd your company matches, make sure you contribute and match that part out. Matching contributions are free money although most companies have vesting periods.
I'll find out next week but from what I read online they offer a 50% match up to 5%, this is my first time working in a big company in nearly 10 years so it's a big change for me.
Congrats on the new job!
I agree with hb and boudreau. At a minimum, contribute what the company requires to get the match. You may or may not be in a higher bracket when you take retirement distributions in X years. However, as long as Goodyear continues the matching program, every $1 you contribute (up to the match amount) instantly turns into $1.50. If you happen to find another investment vehicle to legally receive an immediate risk free 50% ROI, please share with the class.
Quote:I'll find out next week but from what I read online they offer a 50% match up to 5%, this is my first time working in a big company in nearly 10 years so it's a big change for me.
If I understand it correctly: If you contribute 10% the company contributes 5%. I think most people would contribute the 10% so they could get the maximum match. I also think the concerns you have about tax are probably not founded. If you could lose money in the way that you describe, why would anyone even have a 401k?
Ok thanks guys ill make sure to max out the 401k
Quote:If I understand it correctly: If you contribute 10% the company contributes 5%. I think most people would contribute the 10% so they could get the maximum match. I also think the concerns you have about tax are probably not founded. If you could lose money in the way that you describe, why would anyone even have a 401k?
Kind of if I contribute up to 5% of my paycheck call it $100 to make the numbers easy they would match half of that dollar amount so the total into the 401k that period would be $150 now if I want to save $125 they would still only contribute $50 if I wanted to save $80 they would contribute $40 make more sense that way?
Quote:Kind of if I contribute up to 5% of my paycheck call it $100 to make the numbers easy they would match half of that dollar amount so the total into the 401k that period would be $150 now if I want to save $125 they would still only contribute $50 if I wanted to save $80 they would contribute $40 make more sense that way?
Yeah, the way you explained it sounds about right.
Luckily I'm 100% up to 5%...its always a good perk to take all the "free" money you can. The company I work for has annoyed me with it though. You don't get that 5% on a bi monthly basis anymore. They give it to you in a lump sum at the end of the year. So if you leave in August.....that 5% goes down the drain. It's a crappy move by the company.
Quote:Yeah, the way you explained it sounds about right.
Luckily I'm 100% up to 5%...its always a good perk to take all the "free" money you can. The company I work for has annoyed me with it though. You don't get that 5% on a bi monthly basis anymore. They give it to you in a lump sum at the end of the year. So if you leave in August.....that 5% goes down the drain. It's a crappy move by the company.
ewww yeah that is sleazy.
So I ended up selling RGEN at $35.20 a share then bought it back again yesterday morning @ $31.40. As of now it is trading at $36.51 a share, it's up over 14% today alone....Not bad.
That puts me up about 35% since March 27th.
I am slaughtering the market.
Sorry guys not trying to brag or boast but I just want to prove that the market can be beaten.
I also lost my job just over a month ago and have been focusing on trading since then so it feels nice to be making it. I have made more money doing this then I did at my job.
Quote:Sorry guys not trying to brag or boast but I just want to prove that the market can be beaten.
I also lost my job just over a month ago and have been focusing on trading since then so it feels nice to be making it. I have made more money doing this then I did at my job.
Good for you man, some people just have the ability to see that stuff, not me I'm to simple minded.
Quote:Sorry guys not trying to brag or boast but I just want to prove that the market can be beaten.
I also lost my job just over a month ago and have been focusing on trading since then so it feels nice to be making it. I have made more money doing this then I did at my job.
That's good, but be careful because all your gains can go away quickly. Good luck.
Quote:That's good, but be careful because all your gains can go away quickly. Good luck.
Trust me I know, just can't let greed get in the way and sell when you have to.
Quote:I have always been interested in the market and have had the mindset that letting my money work for me is much more efficient vs. by the hour shift work.
One thing about me is that I am not a gambler by any means, but I am intrigued by the stock market as I feel that this is a method of educated gambling, I like my odds with trading stocks vs. playing cards.
For the last three years I have been reading books, studying charts, and for the most part checking up on the market every day.
I recently made some nice gains and I have found that I have quite a passion for this stuff, but unfortunately nobody that I know is into it like I am.
I do mainly short position, momentum swing trading and am quite satisfied with the 15% I have gained in the last three weeks or so.
Anyone here into trading stocks? What do you do? Seems to be a lot of intelligent people here so any insight is much appreciated.
idk if anyone has mentioned it yet since i havent read through the thread, but there is potentially a lot of money to be made with the right medical marijuana stocks right now.
Quote:idk if anyone has mentioned it yet since i havent read through the thread, but there is potentially a lot of money to be made with the right medical marijuana stocks right now.
Everyone says this and I will admit I have not done my thorough research but there are no companies that stand out to me that seem to be booming.
On November 7th, 2012, the day after the election a company called Medbox, symbol MDBX went from $4 and some change to up over $215 a share, in one day. This was a result of marijuana being legalized for recreational use in Colorado and Washington. Right now MDBX is trading for $0.65 a share...
Not going to say it's not possible but just like many have mentioned on this thread, if it were that easy everyone would do it. If everyone is talking about medical marijuana stocks and how much money you can make on them then logic would tell me that this is not definitely not the case. Hope I am wrong though, as I will definitely hop on board if there is money to be made.
Quote:Good for you man, some people just have the ability to see that stuff, not me I'm to simple minded.
Quote:Ok thanks guys ill make sure to max out the 401k
Good call. I'm not sure if anyone mentioned it or not but all of your 401(k) contributions are reduced from your taxable income each year so in addition to matching funds from your company, an advantage of a 401(k) is that it reduces your taxes. For example, if you make 40k annually and contribute 4k to your fund, you only claim 36k in earnings for the year.
Quote:OK got a question for all you investment guys. Starting a new job in 2 weeks, shifting from a small company to a big stable company. I'm taking a position with Goodyear as the Service Manager in Fleming Island. Anyways it's a nice little bump in pay but the real reason for the move is the insurance, they offer all the standard insurance we've been doing without while I worked at the mom and pop garage the last 6 years.
They also offer a 401k matching program up to 5%, but here's my question. My income isn't really high enough that I worry about "paying" income taxes, I get back more then we pay each year with 4 kids and I'm the only income. So there's no "tax" advantage to storing 5% of my income in a 401k, I do however want to be smart and not leave money on the table. As I understand it, doing a 401k I'm deferring the taxes until I retire, when I take that money out in retirement I'm paying whatever the tax rate is at that time. Now call me a pessimist but I'm pretty sure taxes are only going up. Is it still smart for me to take the money they're offering with the match and just essentially gamble on whatever the future tax rate might be. OR should I pay taxes on the income and invest the 5% on my own post-taxes some other way. If it's option 2 what's the best avenue for small investments?
Take the match if you can do without the 5%. You've instantly earned 50% on your investment before market fluctuations. Just make sure you plan on there long enough to satisfy a vestment period if they have one.
Most certainly put in the max you can. You're immediately getting a 50% return on your money and if the market gains it's usual 11% per year over time you're gaining 66.5% return. Dude, that's a no-brainer.
When I first started out in the corporate world I neglected to join the 401k program (ours was 3% match) for 7 years. One day I went into the office and said "this is stupid." I called the administrator and told her to start deducting 6% of my salary. One day years later, I sat down with pen and paper and calculated what those 7 years of contributions would have been worth carried forward 30 years...................$1.7 million!!!!
I just turned 59.5 and can now draw off those funds without penalty. We are having our kitchen, dining room, family room and bar area remodeled and the total cost didn't put a dent in the 401k total. It's wonderful.
If you're worried about access to your money for life changing events there are exceptions to the penalty rule. You will have access for major events.
You will be retiring some day, contributing to a matching 401k plan is the best way to insure you retire with a lot of cash. And don't worry about taxes, I pay less today than I paid 30 years ago.
Regards........................the Chiefjag