quote:
Well, sadly Joe did say he was going to make changes to our 401K accounts. As we all know, no one changes anything in DC unless they want to take more of your money. It’s called income redistribution.

You bet your arse it is redistribution.

For you youngsters, here's a tip. I would have done this if someone told me years ago, but that kind of guidance wasn't around when I was young. It would have been good advice because I saved everything.

Put as much as you can in Roth IRA or Roth 401k. If you have to "backdoor" into a Roth, do it. (look up backdoor Roth is you don't know what it is)

If you have a 401k Roth at your job and you lose your job, leave the 401K Roth at your old job temporarily and do not take possession. Before accepting a new job/employment elsewhere, see if they have a 401k Roth. If possible, focus only on employers with 401K Roth's. When you get your new job, roll your old job 401K Roth into your new job 401K Roth (make sure your new job allows for the rollover). Keep doing these steps if your life has many job changes - it's not unusual. By the time you reach 55 and your 401K Roth is comfortably suited at your job - you can retire if you want to. Look up "Rule 55". There will be no penalty on your 401k Roth withdrawals.

Next - take your investable income and open a stock trading account. Focus on the "Dividend Aristocrats" - stocks that pay a consistent and high dividend track record (see AT&T) and keep investing in these stocks and have their dividends reinvest into the stock. At retirement, you can have the stock trading account send the dividends to you monthly/quarterly and never touch the principle. The tax rate on these dividends is based on Capital gains and you're looking at 20%. Better than personal tax rates by far. And, your Roth distributions are tax free.

If someone is telling you that your income will likely be lower at retirement than your job - lose that person as a friend or advisor. Who the hell wants less money? You have to aim high.

Good luck! Someone will read this who is 20-something and do it. I know they will. I'll be dead and gone when you retire, but you'll have a hell of a lifestyle!

Just remember to save all you can, because....if you don't live like the rest in the beginning, you certainly won't live like the rest in the end. Think about it.. (PS - I'm living proof of this paragraph)

Adios!