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In response to "Be sure to reduce your contributions to 4% from 6% -- nm" by oblique

why, at 6% he is still socking away 10%, which is advisable.

Posted by groiny (aka groiny) Dec 7 '09, 14:25

where else you gonna invest 2% anyway????

Responses:

The money that you put into a 401(k) is never the money you get out. I'm kind of starting to hate the whole concept. -- nm - con_carne Dec 7, 14:32 3
- [deleted] 2
  - Groiny stated a good rule of thumb for saving your money, something that's not the same as 401(k)s. - con_carne Dec 7, 14:38 1
    - so tell, me, what *actually* happens to my money in a 401(k). - znufrii Dec 7, 14:39
The advice I always hear is to contribute up to the match. -- nm - loosilu Dec 7, 14:30 7
- sure, but I also hear that 10% is the magic number for retirement savings.... - groiny Dec 7, 14:35 6
  - that's the ideal, sure. but from a personal liquidity standpoint, it's more efficient for me to use the funds elsewhere in the short-term. - znufrii Dec 7, 14:36 2
    - I agree you need to address the CC debt. what's the rate on your student loans? -- nm - loosilu Dec 7, 14:38
    - to each his own.. nm -- nm - groiny Dec 7, 14:37
  - well, if he has credit card debt it makes sense to attack that. -- nm - loosilu Dec 7, 14:36 2
    - if he has credit card debt, I would not be stashing any $ until it is gone. nm -- nm - groiny Dec 7, 14:36 1
      - but for the company match, I wouldn't be. -- nm - znufrii Dec 7, 14:37
to answer your IM: better to pay off my outstanding debt, credit cards, student loans, etc. -- nm - znufrii Dec 7, 14:26 3
- agreed. -- nm - loosilu Dec 7, 14:31
- and then short-term savings. -- nm - znufrii Dec 7, 14:27 1
  - and, of course, booze. -- nm - znufrii Dec 7, 14:27
I'd much rather put that 2% somewhere that I control the rules about how I access it rather than the government -- nm - oblique Dec 7, 14:26 10
- are 401(k)s not tax-deductable? -- nm - Reagen Dec 7, 14:29 4
  - there are complicated rules about withdrawing money from it. -- nm - loosilu Dec 7, 14:31
  - [deleted] 2
    - and the corrallary to this is that I don't care to make bets on what my taxes are going to look like 30 years from now when I don't have to - oblique Dec 7, 14:31 1
      - iirc, my employer will match on both a Traditional or Roth 401(k) - znufrii Dec 7, 14:35
- you are already putting 8% away, might as well make it the full 10% - groiny Dec 7, 14:29 3
  - It's the same for 529 or any other government sponsored program. The rules can change on you and I don't care to have my money locked into someone's - oblique Dec 7, 14:30 2
    - the only reason to prefer a 401(k) is to the extent your employer matches your contributions. - znufrii Dec 7, 14:32 1
      - exactly -- nm - oblique Dec 7, 14:32
- actually, it just about makes up for the increase in health insurance premiums I'm looking at for next year. -- nm - znufrii Dec 7, 14:28

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why, at 6% he is still socking away 10%, which is advisable.

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