yenahmik

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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...

yenahmik ,

General retirement advice is to contribute 15% total to your retirement account. Since your employer adds 12%, you should contribute a minimum of 3%.

As for your coworkers advice, it may or may not be valid. Contributing to your 401k or a taxable account, both allow you to invest your money. The 401k comes along with tax advantages. Assuming you are making Traditional contributions, then you are saving taxes at the marginal tax bracket (potentially 22 or 24%). If you contribute enough to drop your MAGI to the 12% bracket, then the tax benefit is much less. You can still contribute to Roth, which means you can withdraw that money tax free in the future but you have to pay taxes on it now.

Another thing to consider is the fees in your 401k. Since you are limited to the options provided, sometimes fees are quite high. If you don’t have any options that cost less than 1%, you likely are better off investing your money elsewhere.

Finally, you get into the really personal part of personal finance. What are your goals? Do you have short/medium term goals that you would prefer to save this money for? For instance, if you want to save up for a down payment for a house in the future, putting that money in a 401k is a bad choice. Do you have a comfortable emergency fund to pay for unexpected expenses? Do you have high interest debt to pay off?

A good resource is this flowchart from r/personal finance: imgur.com/u0ocDRI

Credit score dropped for seemingly no reason

I moved countries a few years ago and am building up my credit score from scratch. I’m cognizant of good practices to build up my credit score like paying my credit card on time. My credit score dropped 10 points in the last month but I don’t know why. I’ve increased my spending on my card because of Christmas and...

yenahmik ,

You should wait for the statement to pay your spending instead of covering it same day. Otherwise it’s not reported to the credit agencies and it looks like you have no activity on your card.

Also, generally speaking some fluctuation from month to month is to be expected. I wouldn’t worry too much about 10 points in either direction.

yenahmik ,

This seems like the author stole the concept of Bob the World’s Worst Market Timer.

But the point still stands. Investing in broad market indexes and forgetting it is the best thing you can do financially for yourself.

why do i constantly oscillate between having an a) intense work ethic where i consistently work hard and manage money wisely or b) pure gluttony and hedonism where i spend freely and accumulate debt

when i do A for long enough and my overall net worth comes close enough to zero, i switch to B and am only sometimes capable of wrangling it in...

yenahmik ,

Are you budgeting and allowing for fun when you’re in the A phase? If not, or if you are but not at a reasonable level, it might be caused by a reaction to extreme limitations on yourself.

What the hell is this shit? Instead of pushing for the return to traditional pensions, capitalism is celebrating the idea that Millennials and Gen Z may simply never be able to stop working. ( www.cnbc.com )

Traditionally, retiring entails leaving the workforce permanently. However, experts found that the very definition of retirement is also changing between generations....

yenahmik ,

Why should people push for traditional pensions? I don’t want to be stuck at a crappy job just because leaving would reset my retirement clock. It’s the same reason healthcare shouldn’t be attached to the employer either.

Kitchen completed. ( lemmy.world )

A few years ago i bought a very run down mobile home and i started rebuilding it from the steel/iron frame up. Ill include a few pics of the in between in the comments, but this is my kitchen finally completed. I rehabbed some used cabinets and built a good bit of them from scratch as well as the cabinet doors. This is my first...

yenahmik ,

Looks beautiful! Great work.

I have to admit I misread the title and thought it said “Kitten completed.” I’m a little disappointed by the lack of kittens in your kitchen now.

yenahmik ,

I personally have ~1 years worth of cash savings. I have it as an emergency fund plus slush fund for any big purchases so I won’t have to sell my stocks. For instance, I was able to purchase a new HVAC for my house without having to move any money around or sell any investments. I’ve just been slowly replenishing my savings alongside investing since that purchase.

If I was you, I would definitely make sure I have at least 6 months savings and then maybe split investments/continued savings until I was at a point I was comfortable with in terms of savings (whatever it is that you decide that value is). Also, you say your savings account pays low interest. I would look to see if there are any High Yield Savings Accounts available in your country. Here in the US you can find accounts paying ~5% which is great for an efund.

What's the difference between Force, Impulse and Force of Impact?

I was dealing with a problem which stated that two objects were moving with same velocity v and one was a car with mass m and another a truck with mass M, such that M > m. They collided and came to a halt. Their collision lasted for 1 second. Which experienced a greater force of impact?...

yenahmik ,

After searching a little bit everyone seems to have a different equation for force of Impact.

Since it sounds like this is for a class, you should probably find the equation that is given in your textbook/class notes.

yenahmik ,

I think at that rate there isn’t a bad decision. Pay it off for the peace of mind. Or, if you have a higher risk tolerance, invest it in the market, since long term it would likely return more than 4.5% (historically speaking, of course). I think keeping the money to keep it in a money market account or CD is probably not worth it, though.

yenahmik ,

Pet the dog!

yenahmik ,

Those are some extreme easty-westy feet.

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