How much should I invest in 401k on a $30,000 salary-l contribute 12.45% to a defined benefit retirement plan.
542458
It depends how much you can afford to take out.  If you're married and have some financial support for your spouse that helps.  If you can live with less than 30k, try and contribute as much as possible until you hit the limit where the company stops matching.  As long as they match, that's basically free money and you should try and take advantage of it.
666343
Get in contact with the company that you worked for while you had the 401 (k) and find out who manages it for them.  Depending on how the plan is set up, you will be entitled to at least the amount you contributed, if not the company's match also (depending on vesting rules).\n\nYou might also try www.cashunclaimed.com.
668260
FV = A * (1.09^3 + 1.09^2 + 1.09)\n\nWhere A = 12,000.\n\nKey assumption - you are adding (or taking) 12,000 each year to (out of) the annuity (that's what your Q says).\n\n[ADDED] Excuse me, but the right answer IS here.  Mine comes to $42,878.  Answer Girl is awfully close and probably differs only in assumption of the timing of the 12K deposits.  I'm an MBA and this is part of what I do for a living.
842365
Everyone must create his own retirement savings.  You need to save about 15% of every dollar you'll ever make to expect a reasonable retirement.  You need to deversify your investment and maintain a good rate of return (about 8% per annum). Avoid any mutual funds with annual fees exceeding .2%.  Direct investment in stocks and bonds will greatly reduce the expense drain on your portfolio.\nPut 10% of your money into foreign investments.
1065155
I would buy an investment property or two, then put the rest in some type of money market fund earning an average of 10% or more. The Rule of 72 states that any money invested @ 10% will double every 7 years.\n\nIf you used 100k of that 400k, on down payments on one or two investment properties to create you some month to month cash flow, and build long term equity. Then the other 300k in a fund, in seven years you'll have 600k, 14years 1.2mil, 21years 2.4mil; geez your retired good for you!!
453362
- Set aside a specific amount each paycheck.\n- Invest that through sharebuilder.com on an ETFs such as iShares MSCI EAFE Index Fund (ETF).\n- Once that amount cumulates to more than $3000, invest the lump sum in a Vanguard index fund.\n- Keep contributing the specific amount to that investment account.\n\n- always look for tax-deferred way of saving such as 401k or IRA accounts.
126578
OPM is right. Don't confuse the type of account (401k in this case) with choosing an investment mix. I help businesses design and implement retirement plans and as OPM said, you are limited by the plan your employer chooses. That doesn't mean you should put your money elsewhere, especially if your employer provides any kind of match.\n\nFirst rule of retirement investing: If your employer is going to give you free money, TAKE IT!\n\nIf you work for a fairly large and/or sophisticated employer your 401k may have a Self Directed Brokerage option. If available, this option will allow you to bypass the menu of investment options within the plan with at least a portion of your assets. Ask your employer for the details on the plan available to you.
37308
There's many advantages to your money when you put it into a 401k plan.  First, money placed into the 401k plan is deducted from your paycheck _before_ taxes are applied.  So if you make $40,000 a year and you put $5,000 into your 401k, the government taxes you as if you made $35,000.  So the first benefit is overall reduction of taxes in the current year.\n\nThe second benefit is, your money grows within the account tax free.  So, assuming you held onto the account for years and years, let's say it grew from $5,000 to $50,000 10 years later.  That means a $45,000 increase that's never taxed.  Not too shabby, right?\n\nThird, you are only taxed when you withdrawl money from the account after the age of 59.5.  Assuming this is your only source of income at that time, you'll be in a lower tax bracket when you start to use the money.  So, overall, that money is taxed less than it would have been if you used it while you were working.\n\nOf course, this was meant to be a retirement plan (as opposed to a savings account) and provisions were made to assure that any withdrawals prior to the age of 59.5 is penalized an extra 10% on top of your usual tax rate.  This is to discourage misuse of the retirement plan unless you absolutely needed the money.
855986
Hi April,\nTaking what you know you have some amount invested at 5% (or.05) and the remainder of 30,000 invested at 9% (or .09). Since the first amount is unknown, we will call it X. Once we invest that we have the remainder to invest at 9%. \n\nLet X= amout invested @ 5%\n30,000 - X = amount invested @ 9%\n.05X + .09(30,000 - X) = 1940\n.05X - .09X + 2,700 = 1940\n-.04X = -760\nX=$19,000 \n\n$19,000 @ 5%\n$11,000 @ 9%\n\nOR\n\nLet X = amount invested @ 9%\nSo, 30,000 - X = amount invested @ 5%\n\n X(.09)  + ((30000 - X)*.05) = 1,940\n.09X - .05X + 1,500  = 1,940\n.04X = 440\nX= 11,000\n\n$11,000 @ 9%\n$19,000 @ 5%\n\n\nConfirms\n\nYou may further confirm:\n($11,000)(.09) + ($19,000)(.05)\n=$990 + $950 = $1,940!\n\nHave fun with your math :-)
1143792
Well... using very simple math, that translates into about $125 pre-tax for every 1% of interest on the account. So, if you have a savings account with about 5% interest, you'd be looking at about $625 a month pre-tax income. Honestly? if you have that kind of money, there are plenty of safe investments to choose from that will give you a better return.
195053
You should put in at least as much as you need to in order to receive your company's match.  If you put in less than, then you're walking away from "free" money.  Anything over that amount is a personal investment decision.  My old company had a terrible 401(k) program with few, and mostly bad, investment options.  I put in enough to get my company match, and then put more money into an IRA.  My current company has a great matching program, and terrific investment options, so I'm maxing out my contribution.  \n\nThe short answer is put away as much as you can.  The longer it sits in an investment that's growing, the more money you'll have at the end.
4641
yup, unless you're 59 and a half, then you will have to pay the full tax on the money taken out of your 401k plan, which means if you are working right now, you are in your income earning years, hence your tax bracket should be higher, maybe even to the next level depending on how much you take out of your 401k, since that would be counted as regular income.  and the IRS (uncle sam calls it a penalty, but I like to call it a tip) would also be needing that tip from you, a 10% tip for every buck you want to take out.  so, if you take 20,000 out, that would be more like 14,400 if your bracket is in the 28% range minus $2000 for that tip i would telling you about, which leaves you 12,400 for taking out 20,000.  not really worth it huh
316544
Don't use any answer in this forum to go by.  \n\nThey don't know you & they don't know your goals. You didn't identify what your time horizon is (ie: buy a car next year or retire in 35 years).  You haven't identifed your risk tolorence. What's your investment experiance level?\n\nWithout these "basics" no one can suggest anything that's really good for you!\n\nGood luck
4569
30 years of contributing the max to a Roth IRA each year should create a million.  If you have a 401k at work that offers matching, contribute enough to get the max of the match.
592059
10% penalty plus taxes...so, yeah, at least 30% penalty. \n\nProject returns 50%....which will be taxable, right? So, if you are in 25% bracket, you lose 25% of your return...so, now you are down to a net gain of 37 1/2%.\nSo, it costs 30% to access your money to make a 37 1/2% return....\ntherefore...\nyou net 7 1/2% return. My guess is....you stand a decent chance of making 7 1/2% INSIDE the 401/k and saving yourself all the hassle of moving the $$ around.
108583
All the above answers are good, but I would say it depends..\nWhat are you saving for?  Retirement?  A house?  Vacation?\nBefore wasting your time with a financial planner you really have to decide what your portfolio will be used for.  If it's retirement, by all means use your 401(k) if your employer matches any amount (it's free money and an immediate return on your investment).  If a 401(k) is not available, by all means look at a Roth IRA.  After 5 years your returns are not taxable.  Use the Motley Fool (www.motleyfool.com) for advice.  For long term investment, go with a mutual fund that follows the S&P 500.  I didn't, I was in large caps and mid-caps and haven't made the long term returns that Vanguard 500 returned (over the past 15 years).  Real estate, especially your own home, is a good idea so that it will be paid for before you retire.  Don't overspend yourself on real estate by buying more than you can afford.  Again, figure out what you are saving for and then make a plan based upon what you will need the money for in the future.  Bear in mind when you will need the money as well.  Mutual funds are good for long term (10-15 years+), but if you will need the money in a shorter term (say five years or less) and need for ALL of your original savings to be there, stick with money funds.  They pay more than savings accounts and generally won't lose principal the way your standard mutual funds, or even real estate, could.
356151
You can choose both! If your not too rich.\n\nIf your employer matches your contributions to the 401k...put in enough to get the match.....put the rest of your money in a Traditional IRA ($4,000) max.......you can put more money tax defered in the 401k but an IRA gives you more control over your money and allows you to choose how to invest it.\n\nNow many people will whine and complain that you should use a Roth IRA....I dont care what you do....but if you use a traditional IRA..you get a tax break now......\n\nFor Further reading on this..check our IRS publication 509.