Which works best for YOU? Saving/investing through 401k or saving in a bank, or saving on the side? - GirlsAskGuys
Which works best for YOU? Saving/investing through 401k or saving in a bank, or saving on the side?
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Well considering we’re both from the usa
@DizzyDesii I know you are from USA. Others reading my comment may not be, which is why I made the statement.
Roth: 1. no penalty on pulling monies out at emergency 2. taxes are taken out on front end rather than retirement.
-Taxes never go down especially with Nannie and Freedom limiting State of Biden and Democratic Leftists.
401K: pre-tax dollars taxes paid at retirement.
Banks: 🤷🏻♂️. Two friend that loves their 401 at credit Union.-one federal and one “local” kind of credit union.
One should always consult another whose speciality is Retirement. I have found that, both Christian Retirement and Insurance folks, guard your assets better. Go to the Church with the biggest Biblical Orthodoxy reputation you can find and ask for referral. Christian radio stations have some radio shows about these things. Those guys are usually sharing themselves.
I LIKE HARD ASSETS-Rentals with their 10-25% return rates.-if you know what you’re doing…
JUST MARRY WELL‼️
😉
My baptist church is crooked af 🤣
By Gawd ‼️-That could work to your favor. Find Crook with Conscious 💰 and go in scripturally ready- Money and Attributes of God 💪
Enjoy your weekend. I am not a big Smart tech or social media guy-still no Facebook. I’m spending way to much “in between time” via notification on this Electronic Organism.
🙃
2. Invest BEYOND “401-Pray” (as in “Pray that this works out.”)
3. Invest in your health! Instead of wasting money on bad food and video games, eat right, exercise, and get enough sleep and peace of mind / lower stress. Why? Because fucking medical bills will wipe out that savings when you are old… if you live in a backward country like the US that doesn’t have a nationalized/single-payer health system. So, the healthier you are, the less you have to pay in the long run.
4. Invest in an EV and green technologies so you are not at the mercy of the fossil fuel and utility industries.
#2 lmao #3 i heard that #4 what is EV?
EV = electron volt to a physicist like me, but that is written eV. What I mean here is “Electric Vehicle”. So, you charge your car at home or at a charging station when on the road, but you are not at the mercy of the high price of fossil fuels.
“green tech” means buying technology that uses reusable resources that you don’t have to pay for beyond the purchase. So, for instance, if you get enough solar panels to power your home, then and extra electricity YOU generate from the sun has to be bought back by your electric company. They pay you. However, being even smarter, get a battery storage system so you can run “off the grid” if the grid goes down like in a blackout. You could get some small wind turbines too to help generate power.
Bottomline: Never pay an electric bill again.
C - you can do this, some of the older generation have done this. Some don’t trust banks, etc. But you’ll only be saving money, not having your money work for you by getting interest etc. If you want that, you can also consider stocks/bonds.
D - really doesn’t apply. It’s for tax purposes generally, but unless you’re a millionaire, it’s not necessary.
Generally though I contribute an extra 5% of my salary to super, invest 5% (originally this was real estate but now I do shares) and 10% to savings.
Savings is both long and short term - holidays, cars, big purchases and enough if we were to lose our jobs for a few months. If we didn’t have other investments then I’d be more strict on what we could spend from this account
My IRAs and my wife’s 403(b) are down this year, but they’re still up around 43% over the life of the accounts. Markets go up and down, but over time the trend has always been up. When you’re young it’s better to invest in riskier funds that have the greatest potential for growth, and switch to a less risky portfolio of bonds and stable stocks closer to retirement.
but once I’m stable finically and have a little nest egg set up I’ll probably start putting money into it.
I agree i opted out of 401k too. I do better saving aside
I have in total 3 bank accounts, one is my main and I use it for daily stuff, one I save money to leave it there for emergencies and one I save money on there to invest them into shares but I haven’t done that yet, I was planning on doing that in a few months but I’m not sure right now lol
@melanieeeB You’ve got a good plan. Suggest you consider putting the third account into a mutual fund, or whatever retirement account your country (Germany) has. Unless you follow the markets on a daily basis, it’s risky to invest in equities (stocks). Better to have someone who does that for a living do that, and that’s what mutual funds are. In addition, mutual funds are typically diversified, which is a hedge against risk.
Yea no one schools us on it well
Don’t get too spooked by what the economy is doing rn. Sure if think this going to be a sustained drop ( kind of like 2008) then by all means move the bulk of your money into more stable holdings) but understand long term investing is about compounding interest of many many years. You’re going to have some bad ones. But the good ones should more than make up for it.
Too be honest this time period now is looking like the best point in time in the last 2 years to start investing
Right she can’t go off of what he coworkers say. She’s gotta research for herself. If he’s heavily investing in Stock that’s why he’s experiencing some losses. You win some , you lose some when dealing with stock. If she doesn’t get the 401k together now she’s going to be stuck in the future especially with the way this economy is going.
Do you know anything about rollovers?
@Uptowngirl88
Yeah its weird to see soo many responses here of people who don’t seem to know why investing over them long term is going to provide much greater growth than keeping their money in a savings account or god forbid hiding money under a mattress like some people seem to be suggesting. Its a shame they don’t really teach the benefits of investing while in school.
Not exactly sure what you mean by rollovers
I’m baffled as well. It’s pretty scary the way they’re living. The lack of financial literacy is concerning. Their money is just sitting in a bank collecting dust it’s not moving at all.
I’m trying to see if I can get my ira money put into my 401k. Have you heard of anyone switching it over? I hear financial advisors could but I don’t know. My job has matching aswell so that will triple my retirement money.
@Uptowngirl88 You can switch 401k to IRA but I don’t think you can go the other way around. Plus I don’t think you can take your money out of the 401k until you’ve left your employer. I could be wrong but I think that’s the rule.
Yea our job def said we can’t take anything out of 401k unless we leave them
@Mangospacho I’m not looking to take anything put of a 401k. I dont have one I have an ira I did on my own with the bank. I want to do a rollover of my ira into a 401k where I can maximize my interest. I hear prudential is good
*out 🤦🏽♀️ this auto correct is killing me.. not *put
Yea my bills shift so i rather not automatically sit anything aside until ik for sure
Yep, saving is definitely not a one size fits all process.
Why don’t you have a 401k? Or an IRA? Or at least a cd? Your money isn’t growing. You can’t base getting a 401k off what your coworkers say. It depends what plan they have. They might have. Your coworker might be investing heavily in stocks. If that’s so that’s why his money is fluctuating. But you really do need a 401k because at the rate this economy is going you’re going to need a cushion for retirement. @DizzyDesii
I don’t think you can rollover IRA money into a 401K. You can move the IRA to teh same company that manages the 401K but I’m pretty sure it has to be in a separate account. The reason for this is employee contributions; if existing IRA money were added to a 401K, it would be impossible to keep track of teh value of each piece, which affects income taxes.
cool im thinkin whatever man ya end up with that should be very refreshin to
Even a high interest savings account usually doesn’t keep up with inflation
Haha. One dude told my mom he wanted to get back together so he could get in the house. In reality, he went and retrieved his stash then left 💀
Can you risk losing it like with a 402k?
I’m not certain, I just know that one of them gets taxed as you put money in and one only gets taxed when you close the account and take it all out.
@DizzyDesii and @VaguelyAsianLisbeth. Any investment can be risky. As I described in someone else’s post, 401K and IRA are very similar, with similar risks. The idea is to invest in a combination of things that provide growth and reduce risk. That’s why diversity is important (some equities 9stocks), some bonds, some cash, maybe even some metals (gold, silver).
Or you’re just thinking too deep into it
@exitseven Same thing for me. My 401K really blossomed while Trump was in office, not so much with Biden or any of the other presidents in the last 30 years.
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Of your choices, A-401K (or IRA or Roth IRA) is the best way to save, especially if your company matches a percentage of your contributions. Note, however, that a 401K is intended for retirement, and there are substantial penalties for early withdrawals (there are some exceptions, for example: buying a home).
The best way to save overall is a combination of 401K (or IRA) and savings in a bank or credit union (note: credit unions often offer higher savings interest rates than banks, and may not require minimum balances). Use the bank money without penalty when needed and leave the retirement money untouched until retirement.