Im 39 and have started contributing to 401K since I was 28. Currently I have roughly 80K in my account. Should I start catching up and allocate more to my 401K funds?
Yes, if you want a normal, comfortable life. If you want to do something more high risk, high reward, don't lock that money away.
Yes I’m kind of doing real estate investment on the side and I wanted to buy more. I just don’t much about stocks investments.
<8k/year?!
Yes unfortunately not everyone is as lucky/blessed as you. As an immigrant, I had to start from the ground up and accept a 38K/year salary. I slowly worked my way up and more than tripled that in the 10 yr span so I’m still thankful for all the opportunity that America provided.
Yes
TC?
rule of thumb is you should have a year's base salary on your 401k at the age of 30. Now if you started late (I also started at 28) you need to catch up as much as possible. You'll be surprised how fast it grows when you max out every year.
I didn’t contribute for a while cause I never had any employer match ... and I regret that ... tax saving in itself should be an incentive to contribute to 401k ... i finally started 2 years ago and have been contributing at full capacity
Also different companies have different matches. In my previous 2 jobs they matched dollar per dollar up to 3% of the salary contribution
Well yeah ... but what I’m saying is even if there is 0 match which was the case of my previous employers I should have still contributed to max ... I’m an immigrant too and my starting salary was shit too and yet I’ve wasted money then on a lot of things I shouldn’t have instead of saving via 401k ... also i was immature and I wasn’t sure if I’ll stay here for long A friend who has been contributing since day one has way more money than I can ever catch up to
I also started at around 28 and have maxed out almost every year. I’m now reaching 50 and have 985k. I’m thankful that my company has an awesome matching program combine that with a wise investment strategy all those years.
the dream! good job 👏
Nice great job.
Anybody recommending Roth IRA? Someone said if your salary is over 120K (single) and 190K (combined, married) you’re no longer eligible for that.
Search “Roth ira backdoor” sometimes it’s possible to add roth money after maxing out 401k Given how much you have now in 401k it doesn’t seem you’re contributing to limit
Yes. If you're eligible and have extra money. Max out the Roth IRA. I think its 6k/year now.
Yes