I am just starting a job out of college. How much should I out into my 401k ?
2006-10-07 16:29:18 · 9 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment
I am just starting a job out of college. How much money should I put into my 401k ?
2006-10-07 16:30:03 · update #1
couple of questions first... Does your company match any amount you put in? If they match the first 3% then at least 3% (double your money for free). Next question... Will you save anything if you aren't putting it in your 401K?
Look at the benefits (dividends) of your 401K... Is it growing faster than local banks' CD's? If so , put in as much as you can. If not... put in as much as your company will match and then save the rest at a local bank or credit union at a guarenteed higher rate of return.
2006-10-07 16:35:53 · answer #1 · answered by sandysstyles 2 · 0⤊ 0⤋
Try putting 1% of your pay towards the 401K and then raise the percentage when your comfortable. You do not get any money from this 401K until you retire! Do your research.
2006-10-07 16:36:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A simple guideline is to put in as much as your company match.
But keep in mind that there are SERIOUS tax penalties for taking out money early so if you put money in make sure you won't need it until retirement.
If you aren't sure if you'll need it or not, get a CD or open up a savings account (since you can take out cash at anytime without a tax penalty)
ING direct has great rates with no minimums if you are interested.
2006-10-07 16:39:30 · answer #3 · answered by Bowl O' Knowledge 3 · 0⤊ 0⤋
Temp or No temp, do it perfect away. Time is each and every challenge. do no longer delay. each and every minute is going through using without action is suicide on your section. a million/Get the adventure, it quite is free funds. you would possibly want to rollover to IRA once you left the corporation 2/ initiate Roth IRA ASAP. placed 5k in it. 3/ Do both 401k and roth IRA the similar time. This action will coach you ways to initiate saving early and frequently. placed a minimum of 10% in 401k, 5k in Roth IRA. 10 years from now you'll see your account in 100K plus. It surpassed off to me and that i grew to develop into satisfied i made that determination even as i began my interest. Saving mode receives you in good habit of spending a lot less.
2016-12-04 09:37:23 · answer #4 · answered by snelling 4 · 0⤊ 0⤋
Do as much as you can afford or atleast up to the company match. The more you save now at a young age the better off you will be when you retire.
2006-10-08 00:39:49 · answer #5 · answered by T O 3 · 0⤊ 0⤋
the way things are today if you look around you will see that social security and pension plans will be a thing of the past. i suggest that you put the max that your company will allow.you're not accustomed to living with that money ,so be wise and be forewarned. as you reach that age where you can sit back and enjoy your golden years.you will look back on this advice and smile and hopefully be glad you took it upon to ask this question. good luck.
2006-10-07 16:42:34 · answer #6 · answered by fusionmerlot 1 · 0⤊ 0⤋
All you can. Then increase it with every raise. You will be glad when you retire. And that will be sooner than you think.
However it is not wise to pay 19% to credit card to save 3%
Pay off high interest oloans first.
2006-10-07 16:39:01 · answer #7 · answered by jekin 5 · 0⤊ 0⤋
I would say..4 to 6%, assuming you don't have other obligations such as student loans and such
2006-10-07 16:32:42 · answer #8 · answered by Finance Genius 2 · 0⤊ 0⤋
as much as you can. 15%
2006-10-07 16:37:10 · answer #9 · answered by 987654321abc 5 · 0⤊ 0⤋