Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 06-13-2016, 04:34 PM   #21
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,691
Quote:
Originally Posted by RobbieB View Post
That 401 was still a killer deal though. My Co matched 50% of your first 4% (of salary) and 25% of your next 4%, so if you did 8% it was like giving yourself a 3% raise. I was in for the max and it hardly made any difference in my paycheck due to the tax benefits.

Even with high fees you are better off maxing the 401 especially if there is profit sharing involved.
And this is what employees should do even if they are getting screwed by the plan. In most cases the small company gets kickbacks in the way of free HR services from companies in exchange for the higher fees so companies have good incentives to go with high fee firms.
__________________

__________________
Running_Man is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-13-2016, 04:51 PM   #22
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,158
Quote:
Originally Posted by frayne View Post
JO fan here as well. The problem is, the people who need this advice will not have the patience or tolerence to sit through the twenty minutes of excellent and accurate information.
I do think that the humor and liberal use of words not permitted here may get a few to watch to the end. We can hope. But how sad that it's the ONLY place many would get this info.
__________________

__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 06-13-2016, 05:16 PM   #23
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 142
I just had to see what the 'certification' looked like. Very officious.

ImageUploadedByEarly Retirement Forum1465856129.595523.jpg
__________________
Wisdom starts with wonder
KCGeezer is offline   Reply With Quote
Old 06-13-2016, 06:03 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,379
Quote:
Originally Posted by RobbieB View Post
That 401 was still a killer deal though. My Co matched 50% of your first 4% (of salary) and 25% of your next 4%, so if you did 8% it was like giving yourself a 3% raise. I was in for the max and it hardly made any difference in my paycheck due to the tax benefits.

Even with high fees you are better off maxing the 401 especially if there is profit sharing involved.


I wonder if you had co workers who did not take advantage of that. My GF has many in her office who refuse to participate in the 401k that matches first 3% and 50% of next 3%. They know they are getting a pension of some sort and SS, and that is all they worry about. Spend the rest.


Sent from my iPad using Tapatalk
__________________
Mulligan is offline   Reply With Quote
Old 06-13-2016, 06:29 PM   #25
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 2,491
Yeah, one guy in particular, he just didn't trust the markets I guess. He was my age too and plenty frugal. Used to buy $10 grand T-Bills. I dunno.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is online now   Reply With Quote
Old 06-13-2016, 06:37 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,891
I'll never order chowder in a restaurant again.
__________________
Yes, I have achieved work / life balance.
travelover is online now   Reply With Quote
Old 06-13-2016, 06:50 PM   #27
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,817
Quote:
Originally Posted by travelover View Post
I'll never order chowder in a restaurant again.
LOL - True!

My husband's former employer had an amazingly craptastic 401k that I posted about at the time. He contributed enough to get the match. That helped offset the front loads on the funds that had crappy expense ratios to boot.

We rolled it as soon as we could.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 06-13-2016, 06:51 PM   #28
Dryer sheet aficionado
 
Join Date: Nov 2015
Posts: 33
I think I found a new guy to watch for a while. Thanks. (I guess I like geek humor).
__________________
Matthew J is offline   Reply With Quote
Old 06-13-2016, 07:32 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,277
Quote:
Originally Posted by Mulligan View Post
I wonder if you had co workers who did not take advantage of that. My GF has many in her office who refuse to participate in the 401k that matches first 3% and 50% of next 3%. They know they are getting a pension of some sort and SS, and that is all they worry about. Spend the rest.


Sent from my iPad using Tapatalk


Way back on my second job, the company matched dollar for dollar for the first 8%... really!!!

I used to tell some coworkers that they needed to put money aside.. some would say 'I need the money, there is no way I can put any away'.... where I would say 'put the money away and if you need some just take out a loan'....

Heck, even if you had to pay taxes and penalty on the money you were still ahead of the game big time... nope... some people are just too dumb.... and BTW, we are talking accountants and finance people....
__________________
Texas Proud is online now   Reply With Quote
Old 06-13-2016, 08:04 PM   #30
Recycles dryer sheets
 
Join Date: Feb 2014
Location: SF Bay Area
Posts: 252
Quote:
Originally Posted by Midpack View Post
Good video, from an unexpected source. No wonder most people don't know who to listen to when John Oliver gives better advice than any financial services firm advertising anywhere...
I for one, have always expected JO to give solid advice
__________________
FireBug is offline   Reply With Quote
Old 06-13-2016, 08:38 PM   #31
Recycles dryer sheets
BreathFree's Avatar
 
Join Date: Nov 2012
Location: Navarre
Posts: 101
My 401k is through fidelity. I would pay lower fees if I rolled it over to an IRA at Vanguard but it is my understanding that the 401k has unique liability protection. Anyone else keeping theit 401k for this purpose?
__________________
BreathFree is offline   Reply With Quote
Old 06-13-2016, 09:57 PM   #32
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,951
Quote:
Originally Posted by BreathFree View Post
My 401k is through fidelity. I would pay lower fees if I rolled it over to an IRA at Vanguard but it is my understanding that the 401k has unique liability protection. Anyone else keeping theit 401k for this purpose?

No but my 401k is with Fido and I have an IRA with them that gives me access to things I can't get in the 401k. I keep the 401k because I have a stable value fund and my state has a tax break for employer retirement income. As far as liability protection it depends on which state you live in. Someone posted this link in another thread on this forum.
http://www.thetaxadviser.com/content...teirachart.pdf


Sent from my iPhone using Early Retirement Forum
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 06-13-2016, 11:40 PM   #33
Recycles dryer sheets
YVRRocketSurgery's Avatar
 
Join Date: Dec 2015
Location: Vancouver
Posts: 340
Quote:
Originally Posted by KCGeezer View Post
I just had to see what the 'certification' looked like. Very officious.

Attachment 24110
I just saved $4000 and a trip to Iceland by printing this certificate...

__________________
Target April 2022
"Life moves pretty fast. If you don't stop and look around for a while, you could miss it."
YVRRocketSurgery is offline   Reply With Quote
Old 06-14-2016, 04:30 PM   #34
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,540
Quote:
Originally Posted by KCGeezer View Post
I just had to see what the 'certification' looked like. Very officious.
I couldn't resist either:
Attached Images
File Type: jpg Finance_Cert.jpg (480.4 KB, 33 views)
__________________
I heard the call to do nothing. So I answered it.
Walt34 is online now   Reply With Quote
Old 06-14-2016, 08:51 PM   #35
Full time employment: Posting here.
 
Join Date: Mar 2015
Location: philly
Posts: 876
I like JO.
The thing is even with high fees 401K's do get people to save. My company's 401K is handled by Merrill lynch, fees are pretty middle of the road. My company matches dollar for dollar for the first 6% and if for every year that the company makes a profit and you are contributing at 6% they then throw in an extra 3%.

I'll take that deal
__________________
My darling girl, when are you going to realize that being "normal" is not necessarily a virtue? it sometimes rather denotes a lack of courage~Aunt Francis
bclover is offline   Reply With Quote
Old 06-14-2016, 09:32 PM   #36
Recycles dryer sheets
 
Join Date: Nov 2014
Posts: 147
Quote:
Originally Posted by BreathFree View Post
My 401k is through fidelity. I would pay lower fees if I rolled it over to an IRA at Vanguard but it is my understanding that the 401k has unique liability protection. Anyone else keeping theit 401k for this purpose?
Another 401k benefit to consider is that the 401k can be accessed penalty-free earlier than an IRA; if you retire from the associated company at 55 or older, you can access withdraw without the 10% penalty vs 59.5 for IRAs. This could also be a reason to roll one's IRAs into an employer 401k prior to retiring at 55. I used to think this age-55 rule was a feature of the particular employer's 401k, but it is for all 401ks per the IRS: https://www.irs.gov/taxtopics/tc558.html
__________________
The kids used to call me Captain Slow; now they also use Captain Cheap. I tell them, "Talk to the portfolio!"
growerVon is offline   Reply With Quote
Old 06-14-2016, 09:49 PM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,581
Quote:
Originally Posted by growerVon View Post
Another 401k benefit to consider is that the 401k can be accessed penalty-free earlier than an IRA; if you retire from the associated company at 55 or older, you can access withdraw without the 10% penalty vs 59.5 for IRAs. This could also be a reason to roll one's IRAs into an employer 401k prior to retiring at 55. I used to think this age-55 rule was a feature of the particular employer's 401k, but it is for all 401ks per the IRS: https://www.irs.gov/taxtopics/tc558.html
It must be spelled out in the SPD and the custodian must allow for early withdrawal. Seems odd given it is the law, however a few have found it impossible to do.
__________________
MRG is online now   Reply With Quote
Old 06-14-2016, 10:42 PM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by growerVon View Post
I used to think this age-55 rule was a feature of the particular employer's 401k, but it is for all 401ks per the IRS: https://www.irs.gov/taxtopics/tc558.html
There is a small problem with this withdrawal at age 55 if the 401K is a Solo 401K (for a sole proprietorship.) Since you can only do the withdrawal at age 55 if you have separated from the employer (yourself in this case), then you must terminate the business in order to meet the "separation" requirement. Once you terminate the business, there's no longer a 401K plan to do the distribution ("catch-22"), instead the money has to be rolled over to an IRA. And, as we know, there's no "age 55 rule" for IRAs.
At least that's what appears to be the case. A previous thread on this is here, and a subsequent one is here.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Old 06-15-2016, 01:04 AM   #39
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,472
Quote:
Originally Posted by Texas Proud View Post
I sent this to one of my sisters who just retired... has told me and someone else that they just give their info to the FA... at ML...

I said they cost you a good amount of money... she continues to insist that 'we pay him nothing'.... really? You really think he works for free?


You can teach dear sis something huge: That financial advisor fee is tax deductible. That will get her to find out what that fee actually is. It should be in the quarterly statements. The fee is taken directly out of the portfolio.

She'll look for the fee because of the tax deduction. Then she'll become horrified at how much she is shelling out. Eventually she'll thank you.


Sent from my iPhone using Early Retirement Forum
__________________
EastWest Gal is offline   Reply With Quote
Old 06-15-2016, 09:39 AM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,277
Quote:
Originally Posted by EastWest Gal View Post
You can teach dear sis something huge: That financial advisor fee is tax deductible. That will get her to find out what that fee actually is. It should be in the quarterly statements. The fee is taken directly out of the portfolio.

She'll look for the fee because of the tax deduction. Then she'll become horrified at how much she is shelling out. Eventually she'll thank you.


Sent from my iPhone using Early Retirement Forum
I do not think it is since he is doing their retirement accounts... I do not think they have much saved outside of those...

Anyhow, she will not listen.... and her DH is even worse... they actually are the type of people who can benefit from a FA.... but to me they should know what he is costing them...
__________________

__________________
Texas Proud is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Fainted Last Night travelover Health and Early Retirement 47 11-26-2008 01:54 PM
whoa, should not have had that second bottle of wine last night. newguy88 Other topics 8 04-06-2008 03:56 PM
Had a dream last night Rich_by_the_Bay Other topics 21 12-02-2007 02:44 AM
Anyone see the 60 minutes on work last night? accountingsucks Other topics 32 07-25-2006 09:41 PM
See @ Last, See @ Last, Thank God I Can See @ Last Beachbumz Other topics 24 02-18-2005 08:16 PM

 

 
All times are GMT -6. The time now is 12:13 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.