/biz/ - Business & Finance

[Anonymous No.57203929]

I just realized all my /biz/ friends are gonna be broke at 60 because they aren't smart enough to understand 401ks. Midwits are in for a rough time

[Anonymous No.57203952]

>>57203929
LEL i understand i switched jobs and cashed mine out for link, and now i have 2.5x the money.

[Anonymous No.57203968]

>>57203952
Not until you sell.

[Anonymous No.57203982]

>>57203929
Most people don't understand 401ks, but lots of normies are wise enough or conformist enough to contribute to them anyway.

[Anonymous No.57203987]

>>57203929
im opting out, with the hope that ill make it with link and wont need a stupid 401k that looks up my money until my balls are shriveled.

[Anonymous No.57203999]

>>57203929
whats a 401k? its an american thing right?

[Anonymous No.57204006]

>>57203929
If I havent made it before 60 I dont care anyway


What good is life if you are too old and broken to enjoy things

[Anonymous No.57204007]

>>57203929
>put 5% of my paycheck into account that I can't touch for 40 years
>employer gives me a 5% bonus into that same account for doing so
It's a no brainer

[Anonymous No.57204023]

>>57204006
this, if i haven't made it, i've probably an heros before then

[Anonymous No.57204035]

>>57204023
>Yes good goy, you have to think about how you are gonna get your money in 40 years when you can finally stop working but still need to worry about having money, so better start saving now!!!!

Like who the fuck actually is ok with this

[Anonymous No.57204042]

>2024
>401ks
Lmaooooooooooooooooo

[Anonymous No.57204065]

>>57203929
my mom inherited 500k from Grandpa like 16 years ago, and apparently it's been in the vanguard money market fund this whole time

[Anonymous No.57204070]

>>57203929
i put 12% + 5% match into mine but it is a legislative scam designed to pump the equities markets. it's truly insane that the average worker is forced to invest in US stocks just to have the slightest chance of retiring.

[Anonymous No.57204083]

>>57203929
I've tried explaining Roth IRA s to my friends and none of them get it. Even simple things like CDs are too complicated for them

[Anonymous No.57204173]

>>57204070
it's quite the scheme! it's like a ponzi scheme in slow motion

[Anonymous No.57204341]

>>57203929
This is my retirement plan.

[Anonymous No.57204351]

>>57203968
HAAHHAAHAH, then you dont have any money from your 401k for 40 years.

[Anonymous No.57204380]

>>57204070
You could just hold cash in your 401k if you really want. Nobody is forcing you to buy the stock. If anything, the concept of index investing is what created and reinforced the stock market ponzi. Other than the fact that it literally is companies minting paper contracts and dumping them on baggies in the market.

[Anonymous No.57204505]

dm me sars i earn dentist insurance, car insurance, health insurance, vacation insurance but no more than $10 hourly wage. how to cash in my benefits sars?

[Anonymous No.57204506]

i swing shitcoins according to biz and beoble sentiments. i dont do research and i dont know any chart terminology besides "dead cat bounce" and "bart"

[Anonymous No.57204510]

cryin rn realizin this

[Anonymous No.57204511]

>>57204341
go to a psychologist already faggot

[Anonymous No.57204518]

No, but I do understand RWA's. That's something r-right?

[Anonymous No.57204528]

Im already dead from a heart attack by then bucko. Save your tears for someone else

[Anonymous No.57204538]

>>57204506
noooo im crying so fuckin hard rn

[Anonymous No.57204544]

>>57203929
>401k
This man doesn't understand the superior IRA

[Anonymous No.57204594]

>>57204506
youth wont last you forever, anon. for how long can you trade shitcoins before you realized you've wasted your time...?

[Anonymous No.57204601]

DUDE JUST PUT 10% OF YOUR MONEY AWAY INTO A INVESTMENT ACCOUNT YOU CAN NEVER WITHDRAW FROM AND CAN ONLY BUY BOOMER STOCKS WITH AND JUST WAIT UNTIL LITERALLY THE END OF YOUR LIFE AS YOUR 60 YEARS OLD AND OLD AND FRAIL TO CASH OUT MAYBE AT BEST, MAYBE 50 MILLION(JUST 500K IN 2024 DOLLARS) AND TRY AND RETIRE ON THAT LMAO

[Anonymous No.57204615]

>>57203929
There is no way in hell I'm going to live to 60 unless I become a millionaire through my own independent investments. How the absolute fuck does anyone think grinding for 50 years is an acceptable retirement plan?

[Anonymous No.57204618]

>>57204511
I'm not giving my to some 401k firm or (((psychologist))). You aren't getting a single penny

[Anonymous No.57204620]

>>57204006
60 is the new 30 anon. You don’t get to retire an old man anymore, they give you a road bike and membership to the climbing gym at 60 now.

[Anonymous No.57204701]

anons i am a young and broke retarded neet with all my spare money in crypto
please explain these investment plans to me
is a 401k putting money into index funds and having it price matched by your employer until you can take it out tax-free at 60?
how are these accounts opened, and how do you prompt employers to contribute?
if you switch employers, do they just apply their policy to your already existing 401k account?
what makes roth iras different?

[Anonymous No.57204824]

>>57204341
>Helium

I thought you were supposed to to use Nitrogen to avoid the suffocation reflex.

[Anonymous No.57204895]

>>57204701
It's not tax free when you withdraw it. It's taxed as income. The great lie is that income tax rates are going to be comparable 30 years from now as they are today.

Tax rates are going to be double 30 years from now...it's a mathematical certainty. So you'll be paying a 40%+ tax rate + state tax (and municipal tax) on your money when you withdraw when you're 65. The highest bracket just changed from 35% to 37% from 2022 to 2023...expect many more of those little adjustments in the future.

The long term capital gains rate is what the oligarchs pay and thus I reckon it won't be going up by the time I'm 65.

401(k)s are useful in some circumstances but it's not a panacea to avoid paying taxes on earnings...the fed is going to take your money.

[Anonymous No.57204923]

>>57203929
I'm euro and I buy index funds to compensate not having 401ks here, I just hope the global economy doesn't get rekt during my lifetime

[Anonymous No.57204940]

>>57204007
It also lowers your taxable income so you pay less in income taxes

[Anonymous No.57204965]

>my company matches 66% of everything I put into 401k
>including bonuses not just salary
>guaranteed 66% profit for every dollar, plus whatever increase from market
>if I pull it out early 20% is taken and then 20% taxed
>but with 66% match that doesn’t matter

There are people that will literally wait until they have 10 years left to live to use this money, when they can pull out early to make their last 20-30 years on earth much better.

[Anonymous No.57204976]

>>57204824
>suffocation reflex
Helium is an inert gas

[Anonymous No.57204977]

>>57204701
1. There are different types of 401ks. You have your traditional 401k and a Roth 401k. Fundamentally these act the same as a traditional/Roth IRA. Your employer should offer both, but check to be sure.

2. A traditional 401k means you put money into the account "pre-tax". So your $300 contribution from your paycheck going into the 401k has an equivalent value of $300. Once you take your distribution later in life, you'll pay taxes on that based off your current tax rate.

A Roth 401k is a "post-tax", meaning that same $300 contribution (see example above) is taxed before it going into your 401k. Benefit here is you've already paid taxes on the contribution, so when you take your distribution later in life it's tax free.

Thought process for the Roth 401k is basically your tax bracket will be higher when you retire at 60, so it makes sense to pay the lower rate when you're younger to avoid the higher tax rate later in life.

3. Pretty common for employers to price match up to a certain percentage, but it's not a guarantee. General rule is to contribute up to what your employer will match, then make sure your yearly Roth IRA contributions are maxed out, then continue adding to your 401k. Also important to understand if there is a vesting period for your employer's contributions (thankfully this is seemingly being phased out).

4. Most 401ks are managed accounts. You select a general investment strategy, and the 401k provider invests it on your behalf. Your actual involvement will vary based on the plan and provider.

5. In general you open the account and that account is also linked to your employer. When you start a role at a new company this will be part of the initial onboarding process.

6. If you switch employers a couple things can happen. Sometimes the money/investment will just sit there and it's up to you to do something with it. Sometimes the plan provider will liquidate the account so only cash is left. You have a few options.

[Anonymous No.57205000]

>>57204701
>is a 401k putting money into index funds and having it price matched by your employer until you can take it out tax-free at 60?
A 401k or IRA plan is just a investment account like any other but with special tax advantages and rules associated with it. Traditional 401k/IRA takes your pre-tax money and allows you to invest it, then you pay income tax when you withdraw, presumably when you're old and not working anymore. Theoretically you can invest in anything you want in a 401k or IRA, but practically it depends on your provider/custodian. Most big brokerages will let you invest in stocks, bonds, ETFs, etc. or just hold cash. You can also set up a self-directed IRA which you manage yourself and invest in real estate or crypto with the same tax benefits but obviously it's not for brainlets.
>how are these accounts opened, and how do you prompt employers to contribute?
Your employer sets up your 401k plan when you get hired and you just need to work with your company's benefits team/payroll department to set your contribution rate. For trad 401k, the contribution comes out of your gross pay and deposited to the 401k before you get your paycheck (the net pay after taxes and deductions). If one of your benefits is employer match, the company will deposit that along with your contribution.
>if you switch employers, do they just apply their policy to your already existing 401k account?
You can convert your 401k to an IRA or deposit your 401k money into an existing IRA tax free after leaving a job. It's called a rollover.
>what makes roth iras different?
Roth IRA takes post-tax money, invest it, and you don't pay tax on the capital gains.

[Anonymous No.57205037]

>>57203929
>>57204006
>>57204023
>>57204601
>>57204341
this, unironically
for retirement, skip the S&P and go S&W instead

[Anonymous No.57205063]

>>57205037
60 is peak sugardaddy time desu, but I get ya I'll probably do that at 70 if I get there

[Anonymous No.57205248]

>>57204895
>>57204977
>>57205000
thank you anons, i think i understand things a lot more now.
unironically going to take some notes and start tossing this stuff around in my head
for a while i had the same mindset as other anons itt that id either be miserable or dead by withdraw time, but lately i feel like thats been cope and completely ignoring this stuff is just creating another reason to be even more miserable in the future

[Anonymous No.57205326]

>>57205248
>for a while i had the same mindset as other anons itt that id either be miserable or dead by withdraw time, but lately i feel like thats been cope and completely ignoring this stuff is just creating another reason to be even more miserable in the future
Unironically good job breaking free of the brainlet brigade. It's still good to have 401k or IRA as the fallback option in case your post tax invesments don't work out. Plus you can still withdraw from the 401k early anyway, albeit with 10% penalty. It's not like a pension fund which can go bankrupt since it's your own investment account. The worst that can happen is government rugpulls us all by increasing the retirement age, increasing taxes, increasing withdrawl penalties, etc. but if they're that desperate then any investment within the system is suspect as well.

[Anonymous No.57205355]

>dude give us your money and we'll give it back later at 10x the value

literally money doubling from runescape.

[Anonymous No.57205391]

>>57205355
based sexual selection

[Anonymous No.57205860]

Sad stuff bros

[Anonymous No.57205891]

>>57204341
you need to use nitrogen or when the EMTs take the bag off your head you will let out a hilarious chipmunk death rattle. its embarassing

[Anonymous No.57206020]

>>57205248
They're not get-rich quick schemes, they're "I want to not be dependent purely on social security in my 60s' plans. A good business plan necessitates spreading your investments to prevent singular points of failure.

[Anonymous No.57206073]

I used to 401k max, but after a couple years, it isn't worth caring about anymore. there's enough in there such that as long as the global economy doesn't collapse I'll have a nice nest egg to ride out with.
I contribute the minimum now to get employer matching but I think I'm done worrying about my 401k for the rest of my life.
>28