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| cptken |
 Posted: Tue Apr 01, 2008 8:46 pm Post subject: Savings Accounts vs 401k |
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Investing Sr. Associate
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| which do you think is better a savings account or a 401k and explain or elaborate if possible. |
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| deprived |
| Posted: Wed Apr 02, 2008 4:13 am Post subject: |
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Investing Sr. Associate
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advantage in savings account - you can withdraw when you need the cash, the disadvantage is the highest interst rate you can get is <6%. of course you must report interest income on your taxes.
Money stashed in a 401 is not a easy to obtain- then you must repay the money you take out or pay about 20% in fed taxes and up to another 10
% is state/ penalty taxes. I would recommendgoing to www.irahelp.com for more on the types of 401's.
The 401k retirement plan is design for retirement - you have 3 types, each type have their advantages and disadvantages.
There are 3 types of IRA's
Deductible
NonDeductible
Roth
The IRA retirement age is (70 1/2) deemed by the Federal goverment. |
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| cptken |
| Posted: Wed Apr 02, 2008 6:33 am Post subject: |
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Investing Sr. Associate
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| THANKS ILL LOOK INTO THAT INFO |
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| Staggs |
| Posted: Wed Apr 02, 2008 6:39 am Post subject: |
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Investing Sr. Associate
Joined: 19 Jun 2007
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| The biggest benefit to a 401k is the fact that most employers will match what you contribute up to a certain percentage. So in essence you are getting free money!! So you would be a fool not to at least put in up to the amount the company matches. |
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| cptken |
| Posted: Wed Apr 02, 2008 6:55 am Post subject: |
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Investing Sr. Associate
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| thats true so i would be getting ore for my investment in turn really |
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| dozer3060 |
| Posted: Wed Apr 02, 2008 6:05 pm Post subject: |
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Investing Associate
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| It depends on your goals with the money. The 401k is for retirement, but if you saving up for something in the short term (less than 2 years) like a car or house, use a savings account. 401k's and IRA's are for retirement, meaning you can't get at the money easily (with a few exception) until you are 59 1/2. Savings, like CD's, money markets accounts should not be used for long term investing, because of the poor rates of return. |
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| Grimreaper |
| Posted: Thu Apr 03, 2008 2:45 am Post subject: |
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CFO
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| Staggs wrote: | | The biggest benefit to a 401k is the fact that most employers will match what you contribute up to a certain percentage. So in essence you are getting free money!! So you would be a fool not to at least put in up to the amount the company matches. |
Yes!...the "matching funds" feature is a BIG benefut of 401K's....jist axe da fokes who werk at BSC!  BTW, spekkin ov da employees of BSC....can you think ov a more deserving bunch to get their personal wealth eliminated....basides da fokes at maybe GS?  As a sidenote: Did NE1 basides me notice how many crooks in govmint seem to be trained fo theeeya jobs at GS?....like Hank Paulson fer instunce?  |
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| darvick69 |
| Posted: Thu Apr 03, 2008 7:21 am Post subject: |
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New Poster
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Certainly you should take advantage of a company match on your 401k. Do the math...it's a 100% return on your money. Know any stocks that will outperform that guaranteed?
But after you match your 401k, I would set up a ROTH IRA and contribute the max to that. It grows tax free and you can take it out tax free on the other end.
Do it soon. Ya just never know when the government is going to "change their minds". Ugh! |
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