401K Maxout chesthunara?

[Aquawomen]

401k is a waste investment

22k before tax money and 15k is after tax money . 20 years bratkina  15k ki  300000 earning is good

65 years evadu vayya brathikedhi waste

cc @Konebhar6 and old uncles who are 55 meeku best 401k

 

[rmJU72]

3 minutes ago, Katravelli said:

Ante nee paycheck nundi cut ayithadi kada so you cannot do it once, but you can just max out in first 3 months kavalante like you can put 50% of paycheck for 3 months and adi oka 15k ayindakuko then the rest nuvvu split chesukovachu 

I usually do this…max contributions in first few months of the year and get done with it. assuming >= avg market, it gives more time in the market for investments

[SaradaChinnodu]

1 hour ago, Konebhar6 said:

summary veyyi baa if you read it. 

summary ante konchem kastame....may not be everything but I will highlight important things

1) Idea is to manage your money in such a way you die with barely nothing. Imagine someone dying with 1 mil to their name and if they had spent 15 yrs acquiring that kind of money then it means they worked for someone for free for 15 yrs in their prime age as they never get to enjoy that money...think about it for a min

2) Know when you stop making money - Given some ideas about how to measure it

3) Give away to kids ahead of Time (if at you plan on leaving some behind) not during the death bed or after death as giving in their prime age help them better.

4) Charity lanti ideas unte give them when you are around even though its small rather than leaving a large chunk aftermath as some one will benefit sooner than later....some nice examples around someone leaving 8mil after death and explained it would have been put to much better use had that person chose to donate earlier though its <8 mil etc.

5) inka chala insecurities and fears untayi kadha for an average family guy, they were addressed with neat ideas which makes it an interesting read....

[Katravelli]

My Friend's Dad Died with literally 5000 in his bank. My Hero. 

[Konebhar6]

18 minutes ago, SaradaChinnodu said:

summary ante konchem kastame....may not be everything but I will highlight important things

1) Idea is to manage your money in such a way you die with barely nothing. Imagine someone dying with 1 mil to their name and if they had spent 15 yrs acquiring that kind of money then it means they worked for someone for free for 15 yrs in their prime age as they never get to enjoy that money...think about it for a min

2) Know when you stop making money - Given some ideas about how to measure it

3) Give away to kids ahead of Time (if at you plan on leaving some behind) not during the death bed or after death as giving in their prime age help them better.

4) Charity lanti ideas unte give them when you are around even though its small rather than leaving a large chunk aftermath as some one will benefit sooner than later....some nice examples around someone leaving 8mil after death and explained it would have been put to much better use had that person chose to donate earlier though its <8 mil etc.

5) inka chala insecurities and fears untayi kadha for an average family guy, they were addressed with neat ideas which makes it an interesting read....

Interesting and thought provoking. 

[Konebhar6]

37 minutes ago, Aquawomen said:

401k is a waste investment

22k before tax money and 15k is after tax money . 20 years bratkina  15k ki  300000 earning is good

65 years evadu vayya brathikedhi waste

cc @Konebhar6 and old uncles who are 55 meeku best 401k

 

Antaa old kadule. early 40s. 

Anyways I respect your idea and understand what you are saying. 

[nag]

18 hours ago, Usr59 said:

can we invest in 401k one time a year rather than paying from paycheck each month, similar to Roth IRA?

does every company 401k has vesting period?

Yes and No. 

 No, because you can invest only from your paychecks..  

Yes, if you get a bonus amount paid out in Jan month (for the previous year).. you can contribute the whole bonus payout in bulk towards your 401k. For example, you earned x thousand as your bonus.. you can contribute x amount (provided X < 401k yearly contribution limits)

 

[nag]

14 hours ago, Aquawomen said:

401k is a waste investment

22k before tax money and 15k is after tax money . 20 years bratkina  15k ki  300000 earning is good

65 years evadu vayya brathikedhi waste

cc @Konebhar6 and old uncles who are 55 meeku best 401k

 

You are wrong anukunta bro..

You are not saving taxes and also missing your employer contribution 

If you are smart enough.. you can grow your investments wisely..

 

[Konebhar6]

5 hours ago, nag said:

Yes and No. 

 No, because you can invest only from your paychecks..  

Yes, if you get a bonus amount paid out in Jan month (for the previous year).. you can contribute the whole bonus payout in bulk towards your 401k. For example, you earned x thousand as your bonus.. you can contribute x amount (provided X < 401k yearly contribution limits)

 

You can contribute a max of 50% of your salary/per month to your 401K until the yearly limits hit. Whatever % you specify, its taken from your bonus also same way i.e. 50% in this case if your limits do not hit.

[Usr59]

5 minutes ago, Konebhar6 said:

You can contribute a max of 50% of your salary/per month to your 401K until the yearly limits hit. Whatever % you specify, its taken from your bonus also same way i.e. 50% in this case if your limits do not hit.

what is vesting period? what if we leave or fired from the company in one year or less what happens to 401k?

[Konebhar6]

2 minutes ago, Usr59 said:

what is vesting period? what if we leave or fired from the company in one year or less what happens to 401k?

401k Account belongs to you and not to company. So any money you contribute is vested right away and yours always. The contribution your company makes is typically 1-3 yrs. Every company has different rules. Some companies do profit sharing where you do not need to contribute any money. 

So if vesting period is 2 yrs lets say, your contribution will always be there and if you are fired or leave company after 2 yrs company's 401k is vested.

[Konebhar6]

5 minutes ago, Usr59 said:

what is vesting period? what if we leave or fired from the company in one year or less what happens to 401k?

You are probably asking what it means. It means any contributions your company makes will be yours only after vesting period. After that they do quarterly contributions which get vested right away.

[Usr59]

31 minutes ago, Konebhar6 said:

You are probably asking what it means. It means any contributions your company makes will be yours only after vesting period. After that they do quarterly contributions which get vested right away.

what if the company doesn't match/doesn't have the feature, do you think its a good idea to go for 401k still? 

[Konebhar6]

15 minutes ago, Usr59 said:

what if the company doesn't match/doesn't have the feature, do you think its a good idea to go for 401k still? 

Depends on how much your family is making. Its always a good idea to save for future. But not at the expense of current living. So if your finances allow it, its a good idea.

For e.g. I was not sure as well a few yrs back and based on a friends recommendation I started maxed out. I have a good amount now. Its a financial security for future and you save 30% tax and if invested in right stocks, you will have good returns over years.

If your company is not offering 401k, you can opt for Traditional IRA. Limits are less though. 

[beerboy17]

I changed employer and got contribution little higher than limit..how to correct it ? Is it can be done by cpa at tax filing only or can we do before that ?