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Old 06-28-2016, 05:03 PM   #101
R8RFAN R8RFAN is offline
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Join Date: Sep 2001
Location: North Carolina
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Quote:
Originally Posted by Amnorix View Post
You may already know all this, but perhaps not, or perhaps someone else doesn't:

Can I ask if you have a 401(k) option? Especially one that has matching? You don't even have to answer -- just let me say that any kind of matching is FREE money, and you should take it.

Even if there is no match, you should invest in the 401(k). Here's why.

Example A (no 401(K) being used):

Gross pay of $2,000 (other than non-tax deductions like health insurance etc). State and federal taxes reduce that by, say, 20%. Take home $1,600.


Example B (with 401(K):

Gross pay of $2,000 (other than non-tax deductions like health insurance etc.). Put $200 per week into 401(k). Gross pay now $1,800. Pay 20% ($360), so take home is $1,440.

$1,440 plus the $200 in the 401(k) is $1,640. You're $40 ahead.

But here's the real kicker-- the $40 grows tax free in whatever investment you put it in.

You basically can't beat tax-free deductions plus tax-free growth compounding over time. It along with home ownership are the two easiest paths to building wealth in the U.S. due, largely, to our existing tax laws.
Yea I do 10% m ost of the time but when I am making too much money in the year I up it to 25% I have about 250k in my 401 right now. Good advice thanks

Quote:
Originally Posted by scho63 View Post
What age are you? That's probably better than 97% of all other Americans
When I was young I got up to my ass in debt and I didn't like the way it felt so I said never again.. I just don't spend alot of money and I have a wife that is the same way. I live in an average size house in an average neighborhood but the cost of living is lower here than most places ... I have been blessed with health and my family has too, I feel sorry for people who lose it all to medical bills ... I never had to have the best when I bought something but I always tried to buy quality and take care of it. I was lucky to get a good job with a good company that paid well ... LTL Trucking pays good, it's hard work and long hours but it pays good but I know it's not everyones cup of tea.
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