401K
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- poomoo
what does 401K mean when advertised as a benefit of a job in the states?
- paraselene0
it's a retirement plan sort of thing. because old people die poor and alone if they don't have one.
- jox0
Retirement plan.
- jox0
- madirish0
definitely 'marketed' as a retirement plan; definitely *not* to be used as one...
- madirish0
much better put here:
http://www.pbs.org/wgbh/pages/fr…
- seed0
Why would you not use it for retirement?
- OSFA0
it is worth it when you have a good employer that contributes or even matches 100% of your contribution. Most employers would match .50 per dollar you save. But if your employer doesn't match or contribute, you are better off with any other form of plam...
- mrdobolina0
much better put where, the pbs web site?
- k0na_an0k0
poomoo. it's a 'benefit' because the company will help you set up a 401k for you, which will automatically take out a percentage or specific amount (set by you) per check and put it into a 401k for your retirement.
bonus points if it is a matching 401k... which these days is pretty rare. although my last two jobs had matching 401k to an extent.
if you put in say 300 per pay period the last place would match half that, so they'd put in 150, giving you a total of 450. not bad.
- bulletfactory0
also, that money is usually contributed pre-taxed - which lowers your taxable income; helping you out in april
- Mimio0
Free money is always good.
- madirish0
Why would you not use it for retirement?
seed
(Jun 19 07, 05:41)because about 70% of the risk and investors in funds that comprise 401k's are not of employers that contribute 100%, if anything at all. they are self-contributing clients and in economic terms, bear the risk load for 'white collar investors', or those who do have employee matching. the large argument against the one i just illustrated are large corps that match on a 'group basis' such as union agreement funds for example. these however fall outside the risk model as their contributions are the result of dividends garnered from alternative investments, making them 1)sheltered from the 401k pool risk, and 2)a tax-break on their investment, as 401k in corporate tax structures when contributed as a payment-matching scenario, is deductable for that corp.
nice, eh?
hence, why, in my (and many economic theorists/advisors) opinion, they should not be used and stand-alone 'retirement' plan.
- madirish0
totally agree with the points raised here as a good 'investment'. i simply feel as 'retirement' plan it is not wise for a number of reasons.
dobs- yeah, i meant the PBS documentry.
- mxhxr100
The fact that it lowers your taxable wages is reason enough to contribute. Free $!
- paraselene0
you should check what happens to it if you ever leave the states. i know that germany refunds all monies taken from your wages for pensions if you cease residency for five years running.
for instance, i have no idea what would happen to my uk pension if i were to return to the states permanently.
i should probably know stuff like that.
:l
- ********0
I have been fully vested for years and have not put in one red cent.
:X
- poomoo0
thanks peeps.
i was just thinking what you were saying para. might be pointless for an asylum seeker.
- madirish0
poomoo- where are you trying to get asylum from and to? you may want to hit me up with an email if it is to the U.S....