I haven’t signed up for the 401k yet because I wanted to wait a year until they matched it first. I’m at my year and now unsure if it’s worth signing up for it? Can anyone give me some honest advice if I should sign up for their 401k now. I’m young and none of this makes sense to me so I’m sorry for the ignorance
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So pay raises don't keep up with inflation but they'll match 100% up to 3% for 401k.....so do the 3% and then they gave you a 3% pay raise.
Anyone who works for a company that offers a 401 should, at a minimum, maximize their company match contributions. 401k's were an ill conceived substitute for corporate pension plans, but that's another story....In the end, after a 30 year career contributing to a 401, the company contribution portion may just cover the tax liability when you start taking distributions... cross your fingers that the tax rate at that time is equal or less to the current tax rate....
The lawsuit is irrelevant to the 401k today. Catch up. The Wells Fargo target date funds are long gone all vanguard. Target date funds always have cr-p performance. look at tier II passive managed. If you dont like that jailbreak and pick what you want via brokerage link. United does not control your money all housed at Fidelity so United cannot steal your money. If Fidelity goes down we all got bigger problems but that is another issue. So leave the free match money on the table because of fear that is sound advice. Better buy a bigger mattress to store your dollars and losr out to inflation with that dead money
Yes! The company match far exceeds the risk. You can always start with a low contribution % and then increase it by 1% when you get your annual increase. It will grow over time and if you move to another company you can roll it over.
There's a lawsuit out right now against UHG for cheating employees out of their 401k. The case goes to court in June.
Yes, regardless of where you work, always take advantage of the 401k.
Stick to the low fee index funds for your 401k investment.
Yes - they invest in a mix of stocks not just UHG When I was young I was contributing $30 per week and had no clue what it was. Today it is worth 1.5m. Of course I have increased that $30 as my pay increased.
I started maxing my 401k and roth at 25/26. Today those accounts are worth over 600,000 (it was higher) and I still am not 40 years old yet (few more years)
Start now
Invest!! The best advice I ever received was to contribute at least 15% of your check and never open a statement. The years go by quicker than you think!
Time is on your side being young get started dont wait. Time is the magic that makes it all work there is no quick money. Do at least enough to max out the corporate match. Start a roth 401k to avoid the ticking time bo-b of a traditional 401k that defers taxes. Avoid the lie that taxes will be less in the future they will not. Avoid the target date stuff in the tier1 choices pure trash. do the index funds in tier II passively managed group. always look for the lowest expense and fees. best bet is stock Vanguard Institutional 500 Index Trust and Vanguard Institutional Extended Market Index Trust. set it and forget it. Next step once you get the minum in the fund is to setup brokerage link to jailbreak the system so you can invest in anything. FZROX FIDELITY ZERO TOTAL MARKET INDEX. zero fees then think about bitcoin ETF to get some exposure in crypto.
iShares Bitcoin Trust ETF or Fidelity Wise Origin Bitcoin Fund. fidelity owns the coin outright ishares does not so more risk there of tomfoolery. Good luck
10000%. invest as high as you can!
Definitely do the 401K, as much as you can afford, and when they match do that exact percent, or more, it’s free money you will leave on the table if you don’t. My gpa drilled into my head to do this as he didn’t and had nothing in retirement. Im so grateful, and believe me 20, 30 years from now you will be glad you did.
Definitely start as early as you can for a better chance of early retirement, or very comfortable retirement.
It stinks to miss out on the extra money in your paycheck, but future you will thank you for the effort you put into investing into your retirement.
One thing I do, is every year I bump my investment by 1%. If you're able to do this, and max out your contributions for the year over time, you'll be in good shape for retirement down the road.
Just don't take whatever they auto-assign to you as it typically has a very low yield. Typically emerging market stuff that has a very low yield. Transfer it into something that will actually make money.
Yes! No brainer for free money
The younger you sign up, the better. Take
the free money, at least to the 3%. choose the option that mirrors the s&p500 and enjoy the compounding in addition to your contributions to retirement.
i’m assuming your reluctant due to the stock of the company tanking , but the sp500 is a mix of the largest 500 companies , you’ll be fine and start contributing