re: 401k - Putting in more than the company match pros and cons

quote:

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I have heard that you should always invest at least 7% into your 401k, because it will not change your net income. I know this rule of thumb will not always work, but could it serve a general guideline?

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I should have clarified better. Continuing 7% versus contributing 0, would give you about the same net income. My point was that if you contribute 7%, it’s like free money that you can invest. You should invest at least 7%. I also realize that it’s silly for those not taking advantage of the 401ks.