Stocks, ETF, Funds and General Investing

[Greg_D]

My company is doing away with the normal pension and putting 6% into your 401k, plus they will match 50% of the employees first 8% giving a total of 10%. I think a lot of companies are stopping pensions to reduce their liability in the future. All the money that is dropped into your 401k is yours to take when you leave, the company owes you nothing weather you work for them for 3yrs or 30yrs.

My recommendation when you start, at least contribute enough to max out the company match.
Then each year you get a raise (say 3%), bump your contribution up by that amount.
try to get to 20% as fast as you can, in 25-30yrs you'll have 10times your salary in your 401k.

 

[gabulldawg]

New changes:

https://www.investopedia.com/terms/r/roth401k.asp

A Roth 401(k) is an employer-sponsored investment savings account that is funded with after-tax money up to the contribution limit of the plan. This type of investment account is well-suited to people who think they will be in a higher tax bracket in retirement than they are now. The traditional 401(k) plan is funded with pretax money which results in a tax levy on future withdrawals.

With Roth contributions there are no Required Minimum Distributions at age 70 1/2. I don't need the money. I would rather it stay in there and continue to grow tax free for my kids.

 

[GFB]

I recommend giving this a listen if someone is looking for an intro to some fundamental aspects of investing and personal finance in general. It's 44 minutes long but it's entertaining and informative.

http://freakonomics.com/podcast/everything-always-wanted-know-money-afraid-ask-rebroadcast/