401K info needed

Discussion in 'Budget Board' started by NeedaVacation03, Mar 17, 2008.

  1. NeedaVacation03

    NeedaVacation03 <font color=green>My first pair of real sneakers c

    Joined:
    Mar 28, 2005
    Messages:
    970
    There are a lot of people on here with good advice, so I am going to ask a 401K question. My DH is 52yrs old, and we are putting $$ into 401K. Due to poor past financial choices we are behind on retirement. I am wondering at this point if the 401k is the best choice due to his age and the economy. Anyone have any suggestions? Let me know if I need to give more info.
     
  2. littleteapot

    littleteapot Privileged to be learning from the DIS-masters

    Joined:
    Feb 25, 2006
    Messages:
    973
    This is the order I've heard that works best for more people. YMMV

    Fund 401K up to max company match (for us this is dollar for dollar up to 4% of salary)

    Fund Roth IRA accounts for both of you, you can put in up to $5,000 each (if you're over 50) for 2007 (before April 15, 2008) and $6,000 each for 2008 (before April 15, 2009).

    If you have any money left to invest, fully fund the 401K
     
  3. Golf4food

    Golf4food Mouseketeer<br><font color=red>Male pirate last ti

    Joined:
    Feb 10, 2005
    Messages:
    8,045
    The above is generally the best advice. For my company the match is 5%, but rather than dollar for dollar it is a profit sharing so this past year we received $1.42 per dollar - even better! (We get at least $0.50 per dollar in bad years.)

    Be sure to check what investment options you have in the 401K itself and make use of them - don't just leave the money in company stock, for example. As a for instance, my 401K has the following fund options to choose from: bond, stable value, S&P 500, Russell 2000, International, Balanced, and Company stock. We also have a financial recommendation engine that can recommend how to diversify your 401K based on age and targeting retirement income, etc. - check to see if something similar is available to you.
     

Share This Page