I got a raise, dropped it all in my 401K
- Thread starter Da_Sperm
- Start date
Olde Hornet
Well-Known Member
Thats the right thing to do if you can afford it.
Da_Sperm
New Member
Its money I didn't have before. My goal is to max out the 401K and the IRA within the year. Uncle Sam, get PISSED OK!
GRAM4LIFE
Well-Known Member
I at least do up to the max of the pre-tax percentage so that I can lower my taxes for the year. Whatever I can do to lower the amount of taxes I pay, I do.
Blacknbengal
Well-Known Member
They're giving us a raise too in August!!!!!! :jump: But they're laying off by the end of this year. 
Vinita
Let's Go Lions, GO!
That's how they did the teachers in CH the last year I was there. That's just WRONG, IMO.
I think they do them like that everywhere in this state. It is a shame that a teacher would have to pay $550+/month for insurance if the kids are covered.
Da_Sperm
New Member
Why is insurance so expensive for teachers. One can call up an insurance company him or herself and get a cheaper rate.
That's true. It is cheap if you sign up as an individual but I think if you want your family to have the same deductible/plan you pay the full cost of the premium.
It is much cheaper to get it on your own in this case.
Olde Hornet
Well-Known Member
If you qualify, don't forget the Roth IRA.
JSTUS
THE WARHORSES!!!
:tup:
I got two raises the other day and I'm about to do something similar. I wasn't in need for it before, so why spend it now.
DEBO
Geaux Southern Jaguars!
Donald K. Willi
New Member
I'll get another raise in September and again increase the amount that goes into my 401-k every month,which the job matches.
You're doing good,so keep it up.
You're doing good,so keep it up.
Man stop trippin... you probably make that in a few hours...lol
$200 is a blessing for a brake job at a shop.
Da_Sperm
New Member
I'm auto mechanically challenged, I thought $200 for the replacement of some pads was HIGH.
Well, at least that increase went to me instead of Firestone.
GSU4LIFE
Active Member
It is high for just pad replacement. Was it just the front pads?
Da_Sperm
New Member
rear of the 2005 Jetta. They got me?
Suge
The Phat Mack
Considering time, effort, and the fact that you can't do it yourself...they didn't really get you. Sometimes you have to pay for convenience, and you may have been able to get a better price somewhere else, but when you factor in the time it would have taken to do so, plus where and when you could have gotten it done, you paid what you had to.
We max out our roth every yar, and each year as my pay increases, I increase my 403B contribution.
We max out our roth every yar, and each year as my pay increases, I increase my 403B contribution.
It is high because of the fact that you could have gotten Uncle Ray Ray to do it for $20 and a 6 pack plus parts, but it is not high compared to other repair shops. If you had gone to Just Brakes they would have tried to get you for much more.
Da_Sperm
New Member
Good, you have a good plan set. If your retirement in your state is like the teacher retirement in Texas, you will have 3 separate retirement incomes (teacher retirement, Roth, and 403B). Well, actually 6 if your spouse is a teacher also.
You guys will be getting a check dayum near every day of the month. LOL!!!
GSU4LIFE
Active Member
I think $100 per axle is high, but you do have a Jetta so maybe that's the reason.
CEE DOG
Well-Known Member
So are you guys putting more in your 401k than your companies are matching? Is that a good idea? Wouldn't being diverse with other funds make more sense?
http://finance.yahoo.com/expert/article/moneymatters/39146
Posted on Friday, July 13, 2007, 12:00AM
A few weeks ago, I heard a financial adviser on TV say that one of the biggest mistakes you can make is suspending your 401(k) contributions after you qualify for the company match.
I think that's really bad advice, and I want to make sure you understand why.
Max Out, and Then What?
In 2007, you can invest up to $15,500 in a 401(k) plan; if you're 50 or older, the max is $20,500. In addition to your contributions, most plans also offer an employer matching contribution tied to your salary. One typical formula is for an employer to match 50 percent of your contributions up to a max of 6 percent of your salary.
It's an absolute no-brainer that everyone should contribute enough to their 401(k) to get the maximum employer match. But then a question arises: Does it make sense to keep contributing to the 401(k) after you've maxed out on your employer's contribution?
My answer depends on your personal financial situation. Here's my strategy.
Making More Out of Less
If your FICO credit score is below 620, your priority after getting the full company 401(k) match is to pay down your debt so you can boost your credit score. That low score costs you way too much in higher interest rates on credit cards and car and home loans, as well as on your car insurance premium. A low score could also mean that a landlord won't rent to you, and can even keep you from landing a job you want.
If you limit your 401(k) contributions to just enough to get the maximum company match, you'll have more money in your paycheck even after taxes. You can use that to increase your credit card payments.
But if you have a strong FICO score, aren't paying high interest on any credit card debt, and already have an emergency cash fund in place, your next step after getting the maximum company match on your 401(k) should be to fund a Roth IRA.
Why a Roth?
This year, individuals with modified adjusted gross incomes below $99,000, and married couples filing a joint return with income below $156,000, can invest the full $4,000 in a Roth. Contributions are reduced for individuals with incomes between $99,000 and $114,000, as well as married couples with incomes between $156,000 and $166,000. (You can contribute $5,000 if you're at least 50 years old.)
You want to switch over and fully fund a Roth after achieving your employer match on a 401(k) because of your future tax bill. If you follow the standard rules, withdrawals from your Roth will be 100 percent tax free in retirement. Withdrawals from your 401(k) will be taxed at your ordinary income tax rate. Currently, that can be as high as 35 percent, not including state tax.
Unless you're currently in a very high tax bracket and are sure you'll be in a very low one in retirement, odds are that you'll do better with the Roth because of the tax treatment.
http://finance.yahoo.com/expert/article/moneymatters/39146
Posted on Friday, July 13, 2007, 12:00AM
A few weeks ago, I heard a financial adviser on TV say that one of the biggest mistakes you can make is suspending your 401(k) contributions after you qualify for the company match.
I think that's really bad advice, and I want to make sure you understand why.
Max Out, and Then What?
In 2007, you can invest up to $15,500 in a 401(k) plan; if you're 50 or older, the max is $20,500. In addition to your contributions, most plans also offer an employer matching contribution tied to your salary. One typical formula is for an employer to match 50 percent of your contributions up to a max of 6 percent of your salary.
It's an absolute no-brainer that everyone should contribute enough to their 401(k) to get the maximum employer match. But then a question arises: Does it make sense to keep contributing to the 401(k) after you've maxed out on your employer's contribution?
My answer depends on your personal financial situation. Here's my strategy.
Making More Out of Less
If your FICO credit score is below 620, your priority after getting the full company 401(k) match is to pay down your debt so you can boost your credit score. That low score costs you way too much in higher interest rates on credit cards and car and home loans, as well as on your car insurance premium. A low score could also mean that a landlord won't rent to you, and can even keep you from landing a job you want.
If you limit your 401(k) contributions to just enough to get the maximum company match, you'll have more money in your paycheck even after taxes. You can use that to increase your credit card payments.
But if you have a strong FICO score, aren't paying high interest on any credit card debt, and already have an emergency cash fund in place, your next step after getting the maximum company match on your 401(k) should be to fund a Roth IRA.
Why a Roth?
This year, individuals with modified adjusted gross incomes below $99,000, and married couples filing a joint return with income below $156,000, can invest the full $4,000 in a Roth. Contributions are reduced for individuals with incomes between $99,000 and $114,000, as well as married couples with incomes between $156,000 and $166,000. (You can contribute $5,000 if you're at least 50 years old.)
You want to switch over and fully fund a Roth after achieving your employer match on a 401(k) because of your future tax bill. If you follow the standard rules, withdrawals from your Roth will be 100 percent tax free in retirement. Withdrawals from your 401(k) will be taxed at your ordinary income tax rate. Currently, that can be as high as 35 percent, not including state tax.
Unless you're currently in a very high tax bracket and are sure you'll be in a very low one in retirement, odds are that you'll do better with the Roth because of the tax treatment.