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| Author |
Message |
| 10 new of 96 responses total. |
jep
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response 87 of 96:
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Feb 3 21:27 UTC 2006 |
I didn't know there was any such thing as a "Roth 401(k)". I've heard
of "Roth IRAs", but I proved last year I don't know how IRAs work.
My on-line 401(k) site lets me change my allocations. I can designate
up to 75% of my income pre-tax, according to the site, and 10% after
tax, according to the site. Does that make the 10% part a "Roth 401
(k)"?
Just today, there's a new option to automatically increase my
contribution percent by 1% annually until I reach a pre-set limit.
I'll have to think about that.
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tod
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response 88 of 96:
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Feb 3 21:36 UTC 2006 |
re #86
After 60 years, what is $1,107,388.96 with inflation, etc worth?
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marcvh
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response 89 of 96:
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Feb 3 21:57 UTC 2006 |
Assuming an average inflation rate of 3.5%, about $140,566 if my math
is correct. Considerably less impressive but still not exactly chump
change.
Re #87: I can't think what else it might be, but only your accounting
department can say for certain.
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tod
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response 90 of 96:
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Feb 3 21:59 UTC 2006 |
11% is highly optimistic, imo
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slynne
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response 91 of 96:
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Feb 4 00:28 UTC 2006 |
Still, the point is that investments tend to do well over time. Motley
Fool had an article about it recently. One can put money in trust for
one's great grandkids and give them a nice little nest egg
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marcvh
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response 92 of 96:
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Feb 4 00:48 UTC 2006 |
The 11% figure is on the optimistic side, particularly when you consider
that the portfolio should become less aggressive as retirement age nears,
and so on.
Once your great-grandkids become adults there are limits to how long you
can keep the money out of their ungrateful little hands. There's also
the risk that a bunch of unearned money will spoil them and deprive them
of the opportunity to succeed on their own merits.
Also missing from this analysis is opportunity costs. Given a teenager,
funding for a college education is likely to provide a greater return on
investment than a deposit to a retirement account.
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nharmon
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response 93 of 96:
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Feb 4 01:40 UTC 2006 |
"In creating your allocation, you will have to balance the risks
inherent in each investment against their respective returns. From 1925
through today, cash investments generated average returns of 3 percent a
year, bonds averaged a little over 5 percent and stocks averaged about
11 percent."
--http://www.401khelpcenter.com/mpower/feature_100901.html
Stock or equity mutual funds: Such funds are pooled amounts of money
that are invested in stocks. Stocks represent part ownership, or equity,
in corporations, and the goal of stock ownership is to see the value of
the companies increase over time.
* Risk: Stocks can and do lose 10-30% of their value in a matter of
days. However, if you stick with big U.S. companies, you should
be fine over the long term.
* Return: 10.7% average, with years as bad as -43.59% and as good as
+52.83%.
-- http://www.fool.com/money/401k/401k02.htm
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klg
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response 94 of 96:
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Feb 4 01:42 UTC 2006 |
A Roth 401(k), if your employer makes it available, allows an employee
to put up to the annual IRS 401(k) (in 2006, that's $15k - or $20k if
you were born before 1957) limit into the plan. Combined employee
contributions to a regular 401(k) acct and a Roth 401(k) acct cannot
exceed the annual limit. What's good for a lot of people is that unlike
a Roth IRA, the Roth 401(k) can be used regardless of how much you earn
annually.
If the after-tax plan you had last year, though, is the same as the
after-tax plan you have this year, then it's not a Roth 401(k). Your
employer would have told you if it is making a Roth 401(k) available.
Chances are, it's not. Very few employers are making them available due
to (1) the admin cost and hassle, (2) the expected low employee use
rate and (3) as it now stands, they won't be allowed after 2010.
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gull
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response 95 of 96:
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Feb 4 06:26 UTC 2006 |
I'm not rich enough to play with the market the way Motley Fool and
similar sites suggest. My stock investments are all in mutual funds,
mostly index funds. Individual stock picking is an entertaining way to
gamble, but it's not my thing. I don't play the lotto, either.
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wilt
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response 96 of 96:
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May 16 23:52 UTC 2006 |
HACKED BY GNAA LOL JEWS DID WTC LOL
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