retirement fund

**kalspic** · 10-09-2012, 08:04 PM

im looking to start a retirement fund here shortly. i was going to do it through the bank. i would start a 401k but i never stay at a job long enough to make it worth i. what should i look for? what questions should i ask. im going to do some research on it, im just looking for a starting point.

**austinite** · 10-09-2012, 08:07 PM

401k is transferable to another 401k or IRA.

ROTH IRA would be fine. You just wont get the 401k match, if any.

**kalspic** · 10-09-2012, 08:09 PM

gotch. the job im at now yo can start a 401k after a year. but i only plan on staying for 18 months. think i should still set on up. i need to look into what they match. i think its pretty low.

**kalspic** · 10-09-2012, 08:09 PM

also what is the average most companies match?

**austinite** · 10-09-2012, 08:10 PM

Originally Posted by kalspic

gotch. the job im at now yo can start a 401k after a year. but i only plan on staying for 18 months. think i should still set on up. i need to look into what they match. i think its pretty low.

Even the lowest match is better than what other IRA's offer. How old are you?

**kalspic** · 10-09-2012, 08:11 PM

im 22

**austinite** · 10-09-2012, 08:19 PM

Originally Posted by kalspic

im 22

OMG! Start something now! You're so young, you can do pretty conservative amounts and be a millionaire at retirement. Good for you for thinking of this. Most folks don't start retirement plans until mid to late 30's!

Why are you not keeping a steady job? (you really dont have to answer that if you dont want to).

Start a 401k asap. If you move to another job, you will probably lose your vested amount. But if you end up staying then you will gain on your investment.

If comparing IRA's, I would go with a roth, if you make less than 120k/year. With a ROTH, you will be paying taxes as you put money in your account, so your money will grow tax free from that point. VS a traditional IRA where you pay taxes when you get your money. The problem with the traditional IRA is that you don't know how much taxes will be when you retire. And frankly, it aint gonna be any less than today, considering we're currently running at low rates.

Checkout vangaurd, they're top notch.

**kalspic** · 10-09-2012, 08:32 PM

thanks alot aus. i dont keep a job for long becasue i like to see different parts of the country and experiance new places. nothing with my work ethic or anything like that. with ira's and ROTHs is there an intrest rate. or is it just what you put in is what you have?

i want to retire early enough that im still healthy to do what i cant now. also i have very cheep living expenses so i might as well save now

ill look up vanguard. thanks again

**Sfla80** · 10-09-2012, 08:34 PM

I have 401k at my job. They match depends on how the stock is doing. I put 5% of every weeks pay chek into it. Been my At my job now for 5.5 years and I have about 42k in 401. But with thy said In that time my pay rate has changed dramatically over time. By the time I retire if I stay with them and make the same money until then I will have 1.6 million. Which then they say will only last me until I'm I think 75-76 years old. So u have to have more then one. Or add a considerable amount more to it each time.

**kalspic** · 10-09-2012, 08:39 PM

so i did some reading on vanguard. it says i need 3000gs to start. is there a minimum i need to put in each year?

**Brohim** · 10-09-2012, 08:50 PM

Originally Posted by kalspic

so i did some reading on vanguard. it says i need 3000gs to start. is there a minimum i need to put in each year?

you can contribute 5,000$ per year. I would try to hit that target each year. Save up 5k then start an account. You can contribute to last year as well I believe so if you are just starting one you could put in 5k for this year and 5k for last year.

Roth IRA's are the shit. Especially if you are under 30. If you are good at stock's, the tranquil feeling of a million bucks could be your's.

**austinite** · 10-09-2012, 08:50 PM

Originally Posted by kalspic

thanks alot aus. i dont keep a job for long becasue i like to see different parts of the country and experiance new places. nothing with my work ethic or anything like that. with ira's and ROTHs is there an intrest rate. or is it just what you put in is what you have?

i want to retire early enough that im still healthy to do what i cant now. also i have very cheep living expenses so i might as well save now

ill look up vanguard. thanks again

Yes, you gain. It's not just a savings account

**Brohim** · 10-09-2012, 08:57 PM

dude its like a savings account but you get to be your own banker. You know those ****ers at the bank take your money (sometimes charge you) and invest it and make tons of money. Now you get to invest your own money and make tax free gains!

Roth was created in 1997 to help out those that did not make enough in SS. By the time we are older SS will be gone so glad I am investing in Roth now.

**lovbyts** · 10-10-2012, 01:26 AM

As said do something NOW and dont ever touch it unless it's a last choice. I started my 401k when I was 23 but after getting laid off 5 years later I finally had to take it for the house payments. I had to do the same thing again like 5 years later. I had to start over again 5+ years ago with nothing at 45

GOD if I could have not touched it I cant imagine where it would be by no. ALWAYS do at least the matching maximum with your company. Mine is they do $.50 to the $1.00 up to 8% of you income. I NEVER do less than 8% and have done up to 23% for a while until I had bills I had to pay off and went back to 10%. I have never regretted or missed the extra money. I typically put 90% if not 100% of every raise/pay increase into the 401K and never miss it. It starts building fast after a few years.

Even if you dont PLAN on staying at the company long start it as soon as you can. Every little bit counts. Start an IRA now or just put aside 5-10% until you get enough to start an IRA. Most will let you set up an account and do monthly withdraws right away you just can invest until you get the minimum. It's also a great tax intensive. 2 years ago when I did my taxes if I put $2500 into an IRA I would get an extra $1000 back on my taxes. No brainer, I opened the IRA. They give you until April 1st? of that year so you can get the return before you even spend the money. That's free $1000 immediate gain so why wouldnt you?

I made to much to get a tax break for the IRA last year.

?? Make sure you learn all the rules about the IRA on pre tax, after tax and when you HAVE to start withdrawing it. If you dont take it out in time you are taxed like 80% If you dont have a beneficiary set up properly they get taxed like 80% or more. There are some tricky things involved when it's time to take it.

**JAB1** · 10-10-2012, 10:13 AM

YEah man this is great start saving now!!!! I started my 401k at about your age, so glad I did. You wont even miss the money, and its pr tax so 100 out of a check is only about 70 out of pocket!!!!

**spywizard** · 10-10-2012, 10:15 AM

if you own a sub s corp you can create a self directed pension plan and hands down is the best vehicle for savings..

but if you are not to that level 401k and an sep are the way to go..

**Capebuffalo** · 10-10-2012, 10:26 AM

look into a SEP

**kalspic** · 10-10-2012, 03:17 PM

thanks everyone. who could i talk to one on one about the details and what not. im not well educated on banking or financials so a majority of the words, acronyms and prhases confuse me. any ideas?

**SEOINAGE** · 10-10-2012, 03:23 PM

I think where I work you have to be there 1 year to start getting the match, but someone told me you had to be there 5 years to be fully vested. I stopped my contributions for a while cause I needed money, but started back up recently right before I maxed out my HSA contribution for the year, so last pay check was small compared to normal, hurts but wish I never stopped my 401k contributions.

**bigZthedestroyer** · 10-10-2012, 06:25 PM

I started my 401k at 21. Hopefully that sucker swells up nicely!

**gearbox** · 10-10-2012, 06:29 PM

Originally Posted by austinite

401k is transferable to another 401k or IRA.

ROTH IRA would be fine. You just wont get the 401k match, if any.

Probably best way to go.

And he means you wont get any or a match from your employer. Some companies will pay the same % as you put in, others 50%.
I would look into index annuities!

**lovbyts** · 10-10-2012, 07:46 PM

Originally Posted by SEOINAGE

I think where I work you have to be there 1 year to start getting the match, but someone told me you had to be there 5 years to be fully vested. I stopped my contributions for a while cause I needed money, but started back up recently right before I maxed out my HSA contribution for the year, so last pay check was small compared to normal, hurts but wish I never stopped my 401k contributions.

Don't worry about the match or vested
part for now. It still all adds up. The vested has to do with withdrawing it early and such. You don't loose any of YOUR money, only some of the companies matching but typically if you get laid off or even fired you get to keep the companies match also and only pay a penalty if you do early withdraw but you are still far ahead of the game.

After 6 years my 401k is starting to grow by about 25k a year and if all goes well it should be 30k a year in the next couple.

**kalspic** · 10-10-2012, 07:55 PM

Originally Posted by lovbyts

Don't worry about the match or vested
part for now. It still all adds up. The vested has to do with withdrawing it early and such. You don't loose any of YOUR money, only some of the companies matching but typically if you get laid off or even fired you get to keep the companies match also and only pay a penalty if you do early withdraw but you are still far ahead of the game.

After 6 years my 401k is starting to grow by about 25k a year and if all goes well it should be 30k a year in the next couple.

what percentage do you put in now? what does your job match? do you think you will be able to retire by 65?

**lovbyts** · 10-13-2012, 09:43 PM

My job matches $0.50 to the $1.00 up to the first 8%.
I'm currently putting in 12% I think.
I'm hoping for 60 or 62 if all works well. I/we will be retiring or at least moving to Philippines and open a few businesses there. My real retirement plan is the wife will be working long after I retire. She is only 32, I'm 50 in a couple week.