Derek (Steelers, SB champs)
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TAKE IT! Especially if they're matching.
That's free money! |
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Dwight D J
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Yes, for at least up the company match.
Many reasons:
1) It's tax-free--taken out before FICA, Medicare, etc, so a 5% 401k contribution will only decrease take-home pay by about 4%.
2) Stocks are cheap right now. They will go back up over the next 2-3 years. Do you want to buy a stock when its cheap or when it's expensive?
3) If you really think you can retire on Social Security, you'll find out how wrong you are when you ask to move in with your kids. Then you'll need a job at WalMart (or somewhere) to pay your medical bills as you age, after you retire from job #1. |
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Jenn Bunny ♥
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Yes you should get it because your company will probably match your contributions & its good to start saving for your retirement early! Social security wont be around for much longer. |
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$MoMoney$
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Do it up to your employer match if you can afford it. If your employer matches 5% dollar for dollar and you put in 5% of your pay, it's like giving yourself a 5% pay raise by doing nothing. Do it!! Social Security is in for some rocky times and might also cease to exist. and remember there are 3 mistakes that people make in investing in their 401K's
1) They don't even start one
2) The don't put in up to the match
3) The most important one...NOT TAKING ENOUGH RISK!!
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Pu_Rock
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You don't want to work until your 80 right? Any investment plan is a great idea.
Also find out if your employer matches any of your savings. A lot of times the employer will put in money to "match" your savings. What it means is free money pretty much.
You can always roll over your 401K if you leave the job. The earlier you start, the more your money will grow. |
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Serge Polyak
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You should get it.
Here are the reasons:
1) You will not pay taxes on what you put in now. Your money will also grow tax-deferred.
2) Your company could match some of your contributions - its like getting a pay raise.
3) You will build net worth useful at retirement. It is your money no matter what - if you lose your job you could always convert your 401 into IRA. Social security is great, but chances are you will need more money than what Social Security offers.
Now, because of the ongoing market turbulence, you do not want to invest heavily in stock. Let your adviser perform a financial analysis on your case, or do it yourself at http://www.ameri-financial.com/finance-test/personal-finance-test.html , then go with HALF the stock they recommend. I.e., if they say your risk tolerance is 80% stock and 20% bond, do 40% stock instead. Move the other 40% to stock sometime next year, when the crisis is over. |
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Doctor Deth
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if they have any kind of company match - that is FREE MONEY! - You'd be an idiot to pass that up. My company matches 100% of my first 6% - I've gotten about $10,000 free money from them in my 401k plan over the last 2 yrs |
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Dee
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Yea, you should. it will benefit you and your family. |
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