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kersploosh

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12% 401(k) Contribution - What to do? [USA] ( kbin.social )

Hi everyone, I recently landed a new job where the base 401(k) contribution for all FTEs is 12% of your salary. This is regardless of your contribution, with no additional match. I realize that this is unusual for most people and it is for me as well. In my last job, I got up to a 6% match so I maxed that out and didn't think on...

kersploosh ,
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The big advantage of putting your additional contributions into the 401(k) is that it reduces your taxable income. The big disadvantage is that the money is locked away for decades; that cash is no longer available to make big purchases like a car, honeymoon trip, etc. There are some exceptions, but be careful that you don’t get hit with penalties.

Personally, if I were in your situation, I would open a no-fee brokerage account and put you additional retirement money into an index fund that tracks the S&P 500 or NASDAQ. If you need the money before you turn 66 then it will be readily available.

kersploosh ,
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The kid in me wants to step on it! Breaking the first frozen puddles of winter is always fun. I can hear that satisfying crunch now…

kersploosh ,
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The declaration “Stop giving power to the right” is especially weird considering that four of the five counties involved (Skagit, Snohomish, King, Pierce) are Democrat strongholds. They aren’t giving power to the political right.

kersploosh ,
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Beautiful photo. It reminds me that I really need to visit Sweden again.

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