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2000 Honda Civic Dx
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Discussion Starter #1
I recently found employment and I am looking to get serious about saving up for retirement. I'll be starting as an on-call employee and it is a non-benefited position. What are some of my options for 401k's and retirement planning? Should I seek assistance from a formal financial institution or can I learn all this stuff on my own with minimal risk of financial loss?

Hopefully this thread will also benefit fellow young adults with no idea of how this stuff works.
 

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Most employers will offer a cash matching plan up to a certain amount. If you can take full advantage of this.
 

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2000 Honda Civic Dx
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2,032 Posts
Discussion Starter #4
No healthcare benefits for per diem employees but I believe a 403k is available, I'm not too sure about the profit sharing. I still need to research the differences between these financial terms.
 

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McLOVIN
2002 Civic Si
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800 Posts
Google Roth IRA's. My dad and I have talked about saving for retirement a little, but I'm only 20 so I can't start a 401(k) yet. Iirc, Roth IRA's are post tax dollars, aka, money you have left on your check after tax, BUT the reason why they are so attractive is because you pay no tax when you withdraw during retirement, so you pay no tax on your capital gains in the Roth IRA, whereas 401(k)'s and normal IRA's are pretax dollars that are taxed when you withdraw during retirement, so you pay capital gains on it.

So $10,000 is easier to put in a 401(k), but anything you make on it is taxed.
Whereas your $10,000 in a Roth would take longer to put there because it's post tax $'s, but if it's $100,000bwhen you retire, that shit is tax free, whereas if you pay capital gains on that same $100,000 in a 401(k), you could be out 10-20k depending on what tax bracket you fall into prior to retirement.
 

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Premium Member
2005 Legacy GT
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Benefit of a Roth IRA vs a 401K (in a SUPER basic sense).

401K - contributions are taken out pretax, so your taxable income is lower when figuring out taxes ... but the money is taxed when it comes out and you start using it. Benefit of this is that your employer often offers matching contributions up to a certain % cap which in essence = free money.


Roth IRA - contirbutions are made from your post tax wages (net income) money has already been taxed so taxes are not taken out of it once you start using funds.

You could talk to a financial advisor for a better idea of your options, there are also brokerage accounts, and other methods of saving money/building it up. If you're feeling ambitious the resources are out there though. I have a financial advisor and he's an awesome guy. If your employer offers a 401K plan of some sort (I know you don't get it at the moment but bear with me) check to see what financial institution it's through. The advisors at that institution would probably be more than willing to help you out, or point you in the right direction. Since they are "contracted" through your employer to manage their employee accounts, they may offer discounted or free services.

You should be able to at least get a free consult out of any respectable institution.
 

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i have a 401K with up to 3 % match & a 403B. I would recommend it to anyone cause chances are that our parents suck at keeping up their end of the bargain and the benefits they deserved to receive sadly it will most likely not be passed on for younger adults 35 and below. So Google Dave Ramsey. he is the money guru and the only person I will take financial advice from!!
 

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1) buy blue chips for cheap. sell blue chips for profit when you're old and too haggard to still work for money.

2) make lots of money now, get taxed more, get more social security when you're old and too haggard to work.

3) move your family to Asia and mooch off your kids when you're old and too haggard to work. Tell them they have go since you let em mooch of you while they're kids.
 

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Love the Civic
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1) Blue chips don't even taste good, what is this the 80's?
Yes I know what blue chip stocks are....ass hat. Blue chips stocks are not cheap, hence why they are called blue chip, they are long lasting sustainable trades from companies that do well even in down turns, why would they be cheap?

2) Social security is not enough to live on. Even if you make millions, you should never depend on the government to pay you when your done working.

3) Kids aren't mooches, you are a fucking idiot.

OP - open a 401K or and IRA, either one depending on your style of life will stock pile money away for you that will grow over time. There are lots of options including long term, low risk, and short term high risk style investing. Just saving money can be good too, but investments can grow faster and be safer over time.

I can look at mine when I get home and give you the name of the company I work with on my 401K.
 

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2000 Honda Civic Dx
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Discussion Starter #10
How about the stock market? Would it be advisable to have a 401k or IRA and also have some money in stocks to just sit on? I think I'm gonna need to attend a seminar on saving and investing cause I don't really have a clue about this.
 

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McLOVIN
2002 Civic Si
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800 Posts
Let's talk about debt.

What kind of debt are you in?

No sense in trying to get a 3-5% return on your money when someone else is making 5-7% on money you owe them.

Ex: between my wife and I we have like 10k in student loans @ 3.4% (we are in the grace period so 0% interest right now since we are ima school) so really 0% of that money is interest right now.

Her car loan is like 5-6%, so instead of us putting money in the bank or Cd or low return stocks, right now it makes more sense for us to pay down that loan than to invest.

So what's your debt scenario like? If it's just student loans it may make sense to invest, but if you have debts that have interest rates higher than your investment, you are leaving money (could be substantial) on the table.
 

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1) Blue chips don't even taste good, what is this the 80's?
Yes I know what blue chip stocks are....ass hat. Blue chips stocks are not cheap, hence why they are called blue chip, they are long lasting sustainable trades from companies that do well even in down turns, why would they be cheap?

2) Social security is not enough to live on. Even if you make millions, you should never depend on the government to pay you when your done working.

3) Kids aren't mooches, you are a fucking idiot.

OP - open a 401K or and IRA, either one depending on your style of life will stock pile money away for you that will grow over time. There are lots of options including long term, low risk, and short term high risk style investing. Just saving money can be good too, but investments can grow faster and be safer over time.

I can look at mine when I get home and give you the name of the company I work with on my 401K.
:bigrofl:
Must spread rep!
 

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civic
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retirement is like paying out your ass for a bugatti and ending up with a 9th owned civic with a pretty valve cover . doesnt make sense to me..

buy lots o gold retirement plan.. never goes out of style. and a oz is how much now..


btw when you reach that ripe ol age of 65 social security will be gone, and most of the time the 401k you put all that time and money in will propably shutdown or migrate with another company. thus all your efforts are futile.
 

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2000 Honda Civic Dx
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2,032 Posts
Discussion Starter #16
retirement is like paying out your ass for a bugatti and ending up with a 9th owned civic with a pretty valve cover . doesnt make sense to me..

buy lots o gold retirement plan.. never goes out of style. and a oz is how much now..


btw when you reach that ripe ol age of 65 social security will be gone, and most of the time the 401k you put all that time and money in will propably shutdown or migrate with another company. thus all your efforts are futile.
What's your solution?
 
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