401k question

[AllianceDiesel]

Was wondering if this would be the right time to start my 401k, I just qualified for it at my job, but I''m hesitant to start it right now, I have heard people say to start it because everything is so low right now. Also I have a 401k from my old job that I am going to transfer whenever I get this one started.

 

[PC12Driver]

Buy low, sell high.



I'd think now would be a great time to start one, when you can start buying in on the cheap. Especially if you have 20+ years to go for retirement. Start it, and then don't watch it until the economy turns around (it'll only depress you).

 

[BrianJ]

By all means start, especially if your employer has matching. If they do, the longer you wait the more you give up in their matching dollars. Assuming you are relatively young, the key is to start investing in your retirement, you have many years to ride the ups and down of the market.

 

[AllianceDiesel]

yep only 36 years to retirenment,

 

[SmithMark]

start it, fund it at the maximum allowed and never, ever borrow from it

 

[BrianJ]

And if you can't afford or don't want to fund it at the max allowed, at least fund it to the max level of company match.

 

[MLimpert]

I moved a bunch of stuff around in mine today into money market funds and guaranteed interest accounts. Those safer options might be available for you as well - that way you can still take advantage of all the benefits and not worry about bleeding a bunch of money away.

 

[GaryOwen]

This would be a great time to start investing on a regular basis. Just keep putting it in every month into a growth mutual fund. You will be starting out with a very low dollar cost averaging basis. Nobody can time the market, but many try. I haven't touched my mutual funds and am not worrried a bit since I don't plan on removing any for the next 5 or 10 years. Good luck and do what you are comfortable with - no investments are worth losing sleep over!



Gary

 

[JDiepstra]

This has all been good advice. Start now! Put the money into a money market fund. When things settle down, spread it out. Some foreign, some small cap growth, mid cap growth, and large cap growth. You have plenty of time for it to grow, but no time to waste not saving.

 

[JLEONARD]

Yes as said, save as much as possible and as early in your life as possible. Go right to the max you can as soon as you can.

"Pay yourself first".

(2 years left to retirement)

 

[WCPoe]

Start now

Definitely start putting in as much as you can. Thirty plus years ago I started my 401k at the recommendation of a senior coworker. The first day I was eligible I put in the maximum amount and never touched it. Doing that, I was lucky and was able to retire at 55 and feel comfortable I would have enough to live on in the later years. Put in the maximum if you can, you will be thankful you did especially with the uncertainty of the Social Security system in the future.

 

[ioli]

Yes> On starting the 401K ASAP when you qualify, and this is a very good time to buy in while everything is at a low value. If at all possible maximum contributions at 15%. There are tax calculators that are available at certain 401K administer sites you can use so as to dial your Federal and State income taxes so as to tailor those with holding amounts to suit your needs. My first 401K is with PG&E started in 1984 and was growing good. My second 401K with Calpine I started in 2002 and that also grew. Since 1984 I have learned how to manage my portfolios, and have kept 95% of my gaines in those Mutual funds, but I check on them at least once a week, and I constantly read about business issues pertaining to the economy. I do use the mutual fund retirement money market funds in both of my portfolios to keep my gaines when the economy turns south like this one did at the end of December 2007. I have about 10 years now before retirement.

When the economic turn up comes, I will disperse my gaines from my money market into the funds at their low values and capture those gaines as they grow when the economy grows. As those who have already advised don't borrow from it as in taking out a loan against it ever. Good luck.

 

[fest3er]

yep only 36 years to retirenment,

Do the math. Figure if you put $2000 per year into the 401K for 36 years. If it is well managed, your 401K should average not less than 8% annual return. Barring complete economic anhilation, you should have plenty to retire on when you do: almost $5M (at 8% long-term return; should you be really lucky and get 12% annual return, it'll be about $10M more.

 

[GHarman]

#1. Most Definitely do the 401K, to the max if you can.

#2. Get knowledgeable. www.fidelity.com and Fool.com: Stock Investing Advice | Stock Research

Both are excellent sources of information.

#3. Dont think you can ever tell the future, no one can! and if anyone suggests to you that they can, they are a Liar:-laf!

#4. You are responsible for your investment decisions, wether you make them directly or hand it off to a "manager". Thats why you get knowledge!

#5. Other sources of information are www.earnings.com, FundAlarm-Updated 1st of Each Month. Hope this is helpful! GregH

 

[E7mack96]

You can go as high as 50% of pay this year, and that is what I am putting into mine. As others have said, "Buy low... . Retire High"



Just hope it does bounce back in 3-5 years.



Tony