(09-15-2020 07:55 AM)stinkfist Wrote:  

(09-15-2020 07:44 AM)VA49er Wrote:  

(09-14-2020 06:43 PM)Fo Shizzle Wrote:  

(09-14-2020 05:39 PM)chess Wrote:  

(09-14-2020 12:58 PM)Captain Bearcat Wrote:  Right now 401ks really don't offer any incentives for the people who need 401ks the most. This changes that.

Can you explain what you are meaning by this statement?

With a traditional 401k, a person's income is reduced dollar for dollar to what a person directs to the retirement account. This is an incentive.

Im not sure what this means either. I coached employees who were hesitant about joining our company 401K. There were in fact several that were able to defer income in the plan with a very small change to their paycheck. The problem IMO is education. People are very poorly schooled in personal finance today. What PARENTS used to teach their children..they now just defer to the poorly run government schools that do a HORRIBLE job of teaching this stuff. There is plenty of incentive to be in a 401k if someone is taught the philosophy behind them and understands the theory of dollar cost averaging. In fact...You have to be a damn fool NOT to be in one if offered to you.

If people don't understand free money I don't know what else one can do to educate them. It's not only low earners, I know people making 6 figures that don't participate in their 401k. Maybe they have better investment options elsewhere but it's hard to see what's better than free money. Of course, this is all contingent on if there is actually a company match.

which is why maxing Roth was my first choice with only a 3% match...I'll take tax free withdrawal every day until they fuxxor me...which I'm betting will happen if I live too long...

I've been out of the loop for 12 yrs. what corp. 'murica is matching as a standard these days...if 6% or higher, it would be worth going 401k first, Roth second....

I still do both if one makes enough and can budget within means...

The amount of people that are under 30 and don't utilize the Roth option their company offers blows my mind. These are companies offering the same match for traditional 401ks or Roth too SMH. Oh well.