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03-25-2009, 08:56 PM
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#1 |
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Join Date: Jun 2008
Posts: 23
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Should I be putting money into my 401k?
curious on thoughts about contributing to your 401k now that the market is hurting, and that companies are starting to drop their matches, or a portion there of. The statement "What the government creates it controls" may ring more true than ever in the near future.
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Jake The Truth About Wealth Blog Financial Strategies and Wealth Creation Becoming Your Own Banker |
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03-26-2009, 10:30 AM
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#2 |
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Join Date: Apr 2007
Posts: 43
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Well, if you get a match, it's a no brainer, you should contribute all you can, at least up to the matching percentage. If you lost your match, you are still contributing on a pre-tax basis which lowers your taxable wages, so you still get some benefit. Lastly, depending on your investment options in your plan, most of what is in there should have been beaten down fairly well over the past 18 months, so up your percentage and take advantage of the lower pricing on a lot of those funds in there! The market went up 20% in less than 2 weeks, so don't try to time it. Just start that dollar cost average machine and get going!
Good investing! |
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03-27-2009, 05:55 PM
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#3 |
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Although I highly disagree with the concept of dollar cost averaging, let's stick to the 401k. What do you think is the overall purpose of a 401k? and secondly, do you believe you will be in a lower tax bracket as time goes on?
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Jake The Truth About Wealth Blog Financial Strategies and Wealth Creation Becoming Your Own Banker |
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03-28-2009, 04:33 PM
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#4 |
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Join Date: Jun 2008
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Let's put it this way.
Tax the seed or the harvest? If you were a farmer would you rather pay the tax on the seed, or on the harvest? Obviously the seed would have a much smaller tax proportionately. So why do we contribute to certain qualified plans? The only way to win in any retirement account is to take the money out at a lower bracket than the one you contribute with. Do you think you will be in a lower tax bracket in the future? This is highly unlikely assuming the fact that you will hopefully only increase your income, and decrease your liabilities, but on top of that, for political reasons that just might not be possible for a very long time. Some are in the lowest tax bracket they will ever be in their entire life. Get rid of the tax today, and be done. What the government creates it controls, and these plans are just that. There are other options that will produce even more powerful results and get your dollars out of the tax loop, leaving you with full control. completely.
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Jake The Truth About Wealth Blog Financial Strategies and Wealth Creation Becoming Your Own Banker Last edited by jacobtho : 03-28-2009 at 04:35 PM. |
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