Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next
Author: LuckyEddy Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25316  
Subject: How much to allocate Date: 8/15/2001 7:49 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I've heard a lot of "wisdom" saying to put as much as you can afford into your 401K, and for a lot of people that seems to make sense. Currently I am putting in the max, but for my situation I'm having trouble justifying it, and here is why. I am currently 23 and have about $35K in my 401K. My company matches 100% of the 1st 3%, and 50% of the next three, for a total of 4.5%. If I just put in the 6% (and the company match), in 40 years when I can touch it (assuming 3% inflation), it will have grown to over $3 million assuming an 11% rate of return. I am certainly planning on retiring long before 60, so wouldn't it make sense for me to just put in the 6 percent and invest the rest in a form which I can get before age 60?

I have only recently taken an active interest in managing my money, and have since come to believe that going against conventional wisdom is often a good thing, but I wanted to get a sanity check before switching anything over. Thanks in advance for any responses.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement