401k?

[Warnerade]

What exactly is this, when i first got my job back last year i was slightly breifed on it, but i didnt fully understand.

What exactly is this, and at the age of 17, should i invest in it?

[derekhonda]

Retirement fund.....never too early to start.

Alot of companies match what you put in it, so if you can put 2500 into it they will put 2500 in your account too.

[Giz400ex]

Originally posted by NacsRacer027
What exactly is this, when i first got my job back last year i was slightly breifed on it, but i didnt fully understand.

What exactly is this, and at the age of 17, should i invest in it? Its a retirement plan and if your company that you work for matches the amount you put in, enroll in it! These days its hard to find somebody that still does that. But if they don't, you should do it anyways.

[Giz400ex]

Originally posted by derekhonda
Retirement fund.....never too early to start.

Alot of companies match what you put in it, so if you can put 2500 into it they will put 2500 in your account too. We must of been typing the same time or something:confused: :eek2: :huh

[Warnerade]

it is a very big company, one of the best paying tool and die shops around...a lot of guys gross over 2,000 bucks a week...odds are they match what you put in, but i will have to double check.

Say i dont make it here at this shop...either i decide i dont like the environment, or i get fired, will i still have what i put into the 401k at another job? or will it cash out...or will i just lose all of it?

[sandspanker]

:) some companys will match up to 5% mine only puts in 2% :grr: they will never match 100%

it is a retirement fund, that grows tax free until you retire, most employers match, dollar for dollar(or whatever they want), up to a certain percentage(of your gross wages)...for instance, my employer matches 3% dollar for dollar, and my dads employer matches 50 cents on the dollar up to 6%.

I am not sure, but i don't think you can enter your companies 401k plan until you are 21, i know mine was set up that way. also most employers require a full year of service before you can enter the plan.

like i said this is tax free and comes out of your paycheck before the taxes are taken out and before you even get it.

it is a good way to save for retirment...and to give you an idea, i have been in mine since i was eligible and in the first 2 years, which has been 6.5 years now and in the last 4 years i have quadrupled what i put in in the first 2 years, and i have not changed my contribution at all

[dangle]

Originally posted by speedyquad
it is a retirement fund, that grows tax free until you retire, most employers match, dollar for dollar(or whatever they want), up to a certain percentage(of your gross wages)...for instance, my employer matches 3% dollar for dollar, and my dads employer matches 50 cents on the dollar up to 6%.

I am not sure, but i don't think you can enter your companies 401k plan until you are 21, i know mine was set up that way. also most employers require a full year of service before you can enter the plan.

like i said this is tax free and comes out of your paycheck before the taxes are taken out and before you even get it.

it is a good way to save for retirment...and to give you an idea, i have been in mine since i was eligible and in the first 2 years, which has been 6.5 years now and in the last 4 years i have quadrupled what i put in in the first 2 years, and i have not changed my contribution at all

I got my job when I was 18.... goin on a little over 2 years now... 401k opened up after the first year....

Mike

Originally posted by NacsRacer027
it is a very big company, one of the best paying tool and die shops around...a lot of guys gross over 2,000 bucks a week...odds are they match what you put in, but i will have to double check.

Say i dont make it here at this shop...either i decide i dont like the environment, or i get fired, will i still have what i put into the 401k at another job? or will it cash out...or will i just lose all of it?

depends on how you employer sets it up...you get severly penalized if you cash it out...you shold be able to leave it there until you van enter another plan and roll it over into that, or you can roll it over into any other type of plan(ira, etc) without the penalty...the key is you have to reinvest it in another tax free plan...
depending on how much of the employers contribution is "vested" will determine on how much of that portion you get back. my employer had it set up so that after 4 years, i was totally vested, so if for some reason i were to leave the plan now(6.5years in), i would get all of the moies that my employer has matched. if i were to leave the plan at 2 years into it, i would have lost half the employers money. you will always have your money there. sort of....let me explain a little more.

when you invest money in a401k, there is someone that is "playing" the stock market with your money. you tell them how agressive you want it to be invested. higher risks have higher gains, but can also lose. in some of my accounts, i have lost money, but i have made more than i lost...if you don't pay attention, you can lose money.

i wasn't sure if that age was a federal rule or just one my employer set.

[sly400ex]

You can carry your 401K over from company/account to account. If you decide to cash out early, you are looking at. at least a 20% penalty then paying taxes on it too.

You can always borrow from it though, you are actually paying yourself back with interest, works out pretty well.

Yes, start now...do some solid research on it.......... the earlier you start, it makes a HUGE difference at the time of retirement.

[wilkin250r]

Originally posted by NacsRacer027
Say i dont make it here at this shop...either i decide i dont like the environment, or i get fired, will i still have what i put into the 401k at another job? or will it cash out...or will i just lose all of it?

You end up with a what they call a "vested" percentage. Many employers have different stages, some have all or none.

When you leave, you get 100% of everything that YOU put in. That's your money, they can't take it away from you. You also get a percentage of the money THEY put in, and that's your vested percentage.

Let's say, for example, your company matches you dollar for dollar, and you're putting in $600 per year ($50 a month). So after 1 year, you have $1200 in there, $600 from you and $600 from your company. Let's say you leave after those two years.

If you're 50% vested after two years, you get $900 ($600 of yours and 50%, or $300, of theirs). If you're 0% vested, you only get your own $600. If you're 100% vested, you get the full $1200.

My company is 0% vested for 5 years. After 5 years, I'm fully vested (100%). Some companies will actually have stages, 25%, 50%, ect.

Once you leave, you have a couple options. You can take that money and roll it into another retirement plan, with no penalties or fees, and you can't touch it until you're 65. OR, you could take that money and put it your pocket, but you'll have to pay big taxes on it first.

[cook65xc]

If you gross over 2000 bucks you should never want to leave. put 10% aweek in it and you will be set at retirement.

[Warnerade]

Originally posted by cook65xc
If you gross over 2000 bucks you should never want to leave. put 10% aweek in it and you will be set at retirement. i come no where near 2k a week...

keep in mind in still in highschool and only work 25-30 hours a week if it is a full school week. I also am still in my first 6 months there, started out at 8 bucks an hour, and thats what ill stay at until 6 months after i become fulltime.

The guys there (only a handful) work 70+ hours a week, and run the boring mills, dealing with 30-50 ton castings...etc..

[sly400ex]

$2000 gross a week isn't that great for all them hours. If we worked that much, it would be over 3K a week.


In regards to the 401K again, Invest into higher risk/ larger profiting markets at a younger age too. You can afford to take chances as a young investor.

[Warnerade]

Ya, but the guys in the boring mills dont have to work that hard once they get everything setup.

if they have to setup a new part, that will tkae about 6-7 hours total, then the rest of their day is just sitting at their computer, or standing by the machine control. In my opinion, a 24 year old grossing over 2k a week..is doing pretty good for himself.

I think working 70 hours is a bit ridiculous, and dont plan to do that on a weekly basis. I have worked a few 50 hour weeks and, thats good enough for me...maybe 60 so i can get some double pay on the occasion...

I'm pretty sure im going to invest in it when i get the chance, my dad talked me into it tonite, said its a great idea, and can realy help out when your older.

[Racing Rice]

My company will match dollar for dollar up to 6% of your check after 5 years.

I started my 401K when I was 17, it has been 10 years now and I have a lot more money in there then I started with. It is never to early to start saving for your future.

Being younger, don't be afraid to take risks, the higher the risks the bigger the returns. I put a majority of it in the high risk stuff, then take the rest of it and spread it out over the other options. Then I don't mess with it. It has worked for me so far.

[Guy400]

As many others have said here, if they're offering it and you're eligible than get in. I've put in 10% of my pay ever since I enrolled and my company matches at various levels. It doesn't take very long and you start making pretty good money and the best part is because it's being taken off the top (pre-tax) you're saving all this money for retirement and you don't even realize it. Fortunately, I got in to the company I work for now and I'm in their 401k plan and was an employee early enough that I get a pension as well. They now no longer offer a pension to new employees. Between my pension, my 401k and various other investments I plan on retiring at 50 which is when I put my 30th year in. I'll live off my investments until I'm of age to begin drawing from my pension, 401k and Social Security (if that's even around).