Multiple times, people here on Lemmy have assumed I have a 401(k), as if it's something everyone has, and it always amuses me.
this post was submitted on 14 Apr 2024
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It probably is something you should have after a certain age. If not a work supplied 401k, then at least your own managed Roth IRA. And if you're still on the younger side, it's perfectly understandable not to have a 401k yet.
From where should I have gotten the money to invest in it?
If you work for a company that has a 401k then you need to sign up for it. If the company has a match percentage then that is the absolute minimum you should contribute. And when you are younger you should set it up as a Roth so you pay taxes on it now.
This isn't a thing you should do at a certain age. The younger you start the better. The money just comes out of your paycheck, same as taxes.
I do not work for a company that offers such a thing. And I never have.
This is what I'm saying about assumptions.
You can sign up for a Roth IRA then, there's no need for anything from your employer to get one. As far as I recall there's no minimum amount of money you need to put in at start.
I don't know why you're being down voted. I swear, some people would rather complain than make the smallest effort to help themselves. It's good advice.
Even very small contributions to a retirement account can make a big difference in old age.
This is really good advice. There’s no minimum, but there is an annual maximum of $7K.
If your employer doesn't offer a 401k or similar plan, the IRA limits are actually higher.
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(12 replies)
Well if you stopped buying frivolous items like GROCERIES you'd have plenty to invest. Then you could enjoy your retirement for a comfortable 3 years before going back to work
We were talking to my daughter about this just yesterday. It's not even groceries. People think that if you spend $30 or $40 a month on things that make you and those you love happy, you'll never save enough to make yourself marginally more comfortable in the last 10-20 years of your life (if you're lucky) that will be uncomfortable no matter what.
So I suppose maybe if I denied myself and my child every pleasure in life, sure, I could put money in a 401(k). That is not something I would do and I certainly do not think it's a good lesson to teach a child. I'm sure someone will call that some sort of "live for today" or YOLO attitude rather than not giving your child the most miserable childhood you can.
So I suppose maybe if I denied myself and my child every pleasure in life, sure, I could put money in a 401(k).
But that's unproductive hyperbole. Not every pleasure in life costs money, and lots of things you spend money on can be optimized. And even after doing that, if you still feel too squeezed, it might be worth considering a career change and a plan for how to get there.
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(2 replies)
You were telling your daughter that you're spending $30/mo on her to make her happy instead of saving it for your old age? I don't know how you communicated that, but on the surface that does not sound like a healthy thing to tell a child.
If you're worried about providing your daughter a fulfilling childhood, maybe also consider prioritizing time with her? You spend a lot of time on Lemmy dude, is that time you could be spending with her? Or are you on your phone a lot when you're with her?
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(13 replies)
I promise you, if you put that $30/month into your own IRA, you'll make her a lot happier when she doesn't have to support you when she's grown up.
The problem isn't spending a little to make you or your family happy, it's spending for consumable things today, that's going to put you at a huge disadvantage later.
I get it, I have two kids, it's fucking expensive. But you know what's even more expensive? Taking care of old people.
put that $30/month into your own IRA, you'll make her a lot happier when she doesn't have to support you when she's grown up.
Unfortunately, with all of the price-gouging that's been happening, $30/mo is nothing. It probably is now productive being spent. Even with compounding interest, that is going to result in enough funds to retire as an expat in a developing nation with an exceptional exchange rate and likely next to no end of life care, supposing that the investment firm that is profiting off of pensions being extinct does exceedingly well.
I also like to suggest saving anything that one can but noone is going to be able to realistically be able survive on that, unless there are significant socio-economic changes. It's a "pie in the sky when you die" situation.
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(15 replies)
So I suppose maybe if I denied myself and my child every pleasure in life, sure, I could put money in a 401(k). That is not something I would do and I certainly do not think it’s a good lesson to teach a child.
I think that's an excellent lesson to teach a child.
Poverty sucks. Try to get out of it. Deny consumerism, save your money.
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(9 replies)
The only reason I have one is because I can reasonably afford it, and I would be constantly harassed about not contributing to one if I didn't.
I am under no assumption it will even have any meaningful amount of money in it by the time I will be able to retire, assuming that will even be possible by the time I'm 65 (or whatever the retirement age is raised to in the meantime)
I would have.
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(2 replies)
When both parties agree on something it's almost always bad
They must look out for themselves and their owners first.
It is the same reason why a lot of Democrats fought to keep SALT deductions even though it mainly benefits the wealthy. It turns out that people who have 401(k)'s are more likely to vote.
401k was originally supposed to be a simple thing. It was supposed to be a way to avoid taxes on bonuses for more highly paid execs in the banking industry, but also regular employee bonuses too. They sold it to regular workers who might have gotten a few hundred dollar bonus by the employer “matching” the contribution to the 401k.
There was supposed to be a “three legged stool” for retirement. Social security, company defined benefit (pension), and then the 401k. Companies have done everything they can to get rid of traditional pensions, social security is under constant attack and the age you get it is pushed back, and the 401k is being looked at for taxes, being restricted by companies to high fee funds, and loses cash when transferring employers.
Retiring in the country is difficult at best, impossible for most, and constantly under attack for those who have a shot at it.
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(3 replies)
I'd just like to say fuck VOYA 401ks for only allowing you to buy high expense ETFs and limiting self directed accounts to only half your account value in addition to a bullshit $100 yearly fee.
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