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re: 20 years of 401k and now this?
Posted on 6/20/22 at 11:47 am to el Gaucho
Posted on 6/20/22 at 11:47 am to el Gaucho
quote:
401ks are a Ponzi scheme boomers invented to get out of paying you a pension
Oh I agree with you on pensions. I saw some boomer post on LinkedIn that he was able to get an early retirement from Exxon last week due to interest rates hiking, causing his lump sum pension payoff to skyrocket. Basically bragging about his superior retirement options while the rest of us are hoping we get a little drip of the social security they’re all stealing as well
2
Posted on 6/20/22 at 11:51 am to oldcharlie8
quote:
20 years of 401k and now this?
quote:
looks like i may lose the whole fricking thing. sumbitch.
Considering the market is back to December 2020 levels, you should still have 18.5 years of that 20! In reality you should have a much higher amount than that due to the gains from those previous years. That is unless you were in very risky assets that is a different story and you should have known and accepted the risks you took.
If you don't have one, I strongly recommend having an investment strategy and looking at the whole risk/return picture. Invest in what you are comfortable with and make intentional decisions.
Of course the whole market could go to 0 but the probability of that is very low and if that happens who cares about 401ks.
Posted on 6/20/22 at 11:52 am to Upperdecker
quote:
Oh I agree with you on pensions. I saw some boomer post on LinkedIn that he was able to get an early retirement from Exxon last week due to interest rates hiking, causing his lump sum pension payoff to skyrocket. Basically bragging about his superior retirement options while the rest of us are hoping we get a little drip of the social security they’re all stealing as well
It is funny how little people understand or look at the details of pensions. He would have a lot more money if they instead gave his entire pension contributions to him as 401k contributions and he invested in into the market.
The entire concept of a defined benefit plan makes 0 sense because it requires future knowledge. The defined benefit plans generally have to use relatively safe and low returns to get their value thus leaving a large opportunity for a much higher value in defined contribution plans. You just need the companies to contribute the same amount and not reduce overall contributions.
This post was edited on 6/20/22 at 11:56 am
Posted on 6/20/22 at 12:18 pm to oldcharlie8
Retirement won’t matter if it gets that bad. You’ll be on the survival train at that point and every man for himself and his family.l
Posted on 6/20/22 at 12:28 pm to oldcharlie8
If it goes to zero, you better be posting from a tank in the secession army while hiding bars of gold in your suburban bunker.
Posted on 6/20/22 at 12:48 pm to wutangfinancial
quote:
What if I told you the portfolios are constructed the same?
A company controls the pension, manages it (or outsources that to some degree). They choose exactly how the money is invested.
With a 401k you get to pick your own investments, usually through a 3rd party entity as your company outsources that almost every single time. Yes, you dont have endless options in a 401k plan, but you do have have options YOU get to choose from being the key differentiator. My investment goals could be wildly different than what my companies goals are with a pension.
Another thing about pension plans the vesting schedule - they want you to stay and a lot of people dont stick around for long these days. With cliff vesting you have to be somewhere at least 5 years to even get any pension. Sometimes it's graded up like 20% after 2 years, 40% after 3 years, 60% after 4 years, etc...with a 401k generally speaking the funds are contributed immediately except in some cases. So for job hoppers, pensions arent great.
quote:
I'd say people over contribute to their 401ks moreso than under contribute.
Being I work in finance and see what everyone contributes in a company that's ranged from 200-ish to almost a thousand employees....not even close to accurate.
Also not sure what you mean by "over-contribute". Are you saying anything over the match is over contributing to a 401k?
This post was edited on 6/20/22 at 1:12 pm
Posted on 6/20/22 at 1:02 pm to oldcharlie8
Equity markets lost a helluva lot more than this less than 20 years ago lol
Posted on 6/20/22 at 1:05 pm to Upperdecker
Dang I’m jealous
Plant baws are the kings of society and we’re the peasants
Plant baws are the kings of society and we’re the peasants
Posted on 6/20/22 at 2:38 pm to thunderbird1100
quote:
With a 401k you get to pick your own investments, usually through a 3rd party entity as your company outsources that almost every single time. Yes, you dont have endless options in a 401k plan, but you do have have options YOU get to choose from being the key differentiator. My investment goals could be wildly different than what my companies goals are with a pension.
This isn't true. With indexation and the growth of passive these funds are all concentrated in the same names. Same with bond funds. It's fake diversification.
quote:
Are you saying anything over the match is over contributing to a 401k?
Yes because it's not investing and you don't the equity or the debt. The people that do will be the only ones that survive in the long run.
Posted on 6/20/22 at 2:40 pm to el Gaucho
401k's > Pensions
I don't want my retirement to rely on Jimmy Hoffa. I want to self direct my financial future.
I don't want my retirement to rely on Jimmy Hoffa. I want to self direct my financial future.
Posted on 6/20/22 at 2:40 pm to OysterPoBoy
quote:
If you would have squandered it all over the years like I did you’d feel a lot better right now.
Squandered? Think of how many young ladies you put through “nursing” or “cosmetology” school…
Posted on 6/20/22 at 2:50 pm to tigeraddict
quote:
If you are in retirement or close then a more conservative portfolio should have been utilized
What do you consider close to retirement? Bear markets happen every 3.6 years since 1928. When should the OP start considering a conservative portfolio and what is conservative that hasn’t lost money in the last year?
Posted on 6/20/22 at 3:06 pm to oldcharlie8
I have gone the PCRA route within the 401k since January. Basically all my contributions are in individual stocks for this year. My bet is that over next 30, they outperform the returns from say your run of mill target end date fund. I think the market is nowhere near its bottom yet. What I buy is...
AMZN
TSLA
Blackrock
Boeing
Coke
Pretty much everything there should survive nuclear market fallout with exception of Boeing.
AMZN
TSLA
Blackrock
Boeing
Coke
Pretty much everything there should survive nuclear market fallout with exception of Boeing.
This post was edited on 6/20/22 at 3:08 pm
Posted on 6/20/22 at 5:33 pm to oldcharlie8
This is what people voted for, so here we are.
Posted on 6/20/22 at 5:40 pm to kywildcatfanone
quote:
This is what people voted for, so here we are.
To be fair, not many people that own stocks vote Democrat.
Posted on 6/20/22 at 5:43 pm to kywildcatfanone
Z
This post was edited on 6/20/22 at 5:52 pm
Posted on 6/20/22 at 5:44 pm to Aubie Spr96
quote:sorry that you missed out on some real growth.
Moved to all cash not long after Biden got elected.
Posted on 6/20/22 at 5:45 pm to Im4datigers
quote:there isn't a con
Somebody explain the pros and cons of putting more than the match into my 401k.
Posted on 6/20/22 at 8:55 pm to thunderbird1100
You said that too few people took advantage of their 401k offerings. Can you imagine if social security was elective and not mandatory?? The educated few would participate, the shiny toy crowd would not (just like their 401k's) and they would be absolutely destitute when too old to work. As bad as the SS system is, thank God it exists for those who fail to plan.
Posted on 6/21/22 at 7:57 am to wutangfinancial
quote:
This isn't true. With indexation and the growth of passive these funds are all concentrated in the same names. Same with bond funds. It's fake diversification.
You dont seem to understand with a pension your company usually chooses how that money is invested and how much return you actually get.
With a 401k you get to choose where your money is going and how it's invested. No 1 pension and 401k plan is equal. In a 401k you choose how your money gets invested pending the options given to you. You dont typically have any choice in a pension, it's up to the company. this is pretty basic stuff here. The company is not forcing you to invest in anything in a 401k unless you literally have just 1 option which maybe exists somewhere but i've never heard of it.
quote:
Yes because it's not investing and you don't the equity or the debt. The people that do will be the only ones that survive in the long run.
You literally cant possibly make any less sense
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