Question

Who does 401k.  I've heard good and bad from it.Who does 401k. I've heard good and bad from it. Please dont grill me. Still learning as I go. What are the benefits of it and negatives? My work matches up to 4%.  

Answer 1

The match of 4% is free money. Do it. If you feel the mix of funds are good the 401 K company, invest more. if you don't feel the mix of funds are good, still contribute 4% to get the match (free money) & look elsewhere.  

Answer 2

What negatives? I don't think there is a bad thing to save for retirement.  

Answer 3

My husband does. He doesn’t have any complaints.  

Answer 4

No negatives when there's free money involved.  

Answer 5

The only "negative" is that because the money goes in pre-tax, it will be taxed when you take it out. Of course, the idea is that when you are retired, your income (and therefore your tax bracket) are a lot lower. You also cannot withdraw from a 401k early without stiff penalties, so once it is in there, you should leave it there until retirement. But if you have a match, then you are basically being given free money, so you should definitely invest at least the 4%

Answer 6

Do at least 4%

Answer 7

We cancelled ours until we pay off our debt. Then we plan to put in up to our match and then what's left from 15% in a Roth IRA because it grows tax free

Answer 8

I contribute 3% for now, but am changing it to 5% with my next raise in March. Employer matches at 5%. I don't know what a down side to a 401k would be.  

Answer 9

Yes, put in as much as they will match. You can have a 401k as long as you're with a company. If you don't have a stable career, like me, also look at Roth IRA's.  

Answer 10

We do it, but you should covert the contributions by your work at the end of the year to a Roth. Yes you are taxes now but better that than later at a higher rate.  

Answer 11

This might be helpful for you in terms of retirement accounts. It's always good to at least contribute to the match of your 401k because that's free money you're leaving on the table. The negatives would be that you can't access the money until 59. 5 without fees and taxes. Other than that though, it's got great tax benefits and your future self will thank you later

Answer 12

My husband does with his company. He is in a step program with work where they bump it once a year. I know they match a certain % but I am not positive what. It is held with Fidelity.