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So my verdict is that TDS has infected Bloomberg as well, prompting them to try more fear-mongering. I don't think the public is buying it though. They know damn well that Trump has been the best thing to happen to the US economy in generations.
All good comments but for sake of diversity I'd like to point out one great feature. Some allow you to borrow from your 401k decent amounts at low apr where all the interest goes back into your equities. Beats a bank loan mile high.
rando saysSo my verdict is that TDS has infected Bloomberg as well, prompting them to try more fear-mongering. I don't think the public is buying it though. They know damn well that Trump has been the best thing to happen to the US economy in generations.
While there is a scam involved in 401k's (your choices are usually limited to options that allow financial firms to skim billions, or that allow employers to charge those firms kickbacks) overall they are a good thing for anyone with the discipline to put the money in. Of course as soon as you leave any employer, you should roll over the entire thing into a self-directed IRA so that you can stop the bleeding by choosing equities that don't skim much, like index funds or plain old stocks.
As for Trump harming 401k's, that is so far detached from reality as to be comically blatant propaganda. Trump has been the absolute best thing ever for my 401k. Gained the equivalent of two years of my untaxed salary since he was elected. Even the declines this year are insignificant by comparison.
Yes, choices for 401K plans are very limited. My wife works for a major employer that offered plans through T Rowe Price. They had the S&P index fund as one of their options with hardly any cost. I put everything she has in there.
mell saysAll good comments but for sake of diversity I'd like to point out one great feature. Some allow you to borrow from your 401k decent amounts at low apr where all the interest goes back into your equities. Beats a bank loan mile high.
You are basically paying interest back to yourself right?
Strategist saysYes, choices for 401K plans are very limited. My wife works for a major employer that offered plans through T Rowe Price. They had the S&P index fund as one of their options with hardly any cost. I put everything she has in there.
So once a year, you sweep all the money in the 401K over to a Rollover IRA, then you'll have all the options and funds that you want to invest into.
My wife's 401k had no administrator fees, and she could choose her fund: Vanguard, of course. Even working 20 hours a week, putting away 50 percent tax free while living on what I made earned her a very tidy nest egg.
The option of investing in the S&P 500 index is offered on the 401K plans by my wife's company. Her company used T Rowe Price. They had lots of other options, at a much higher cost.
Passive funds like the S&P 500 index are the way to go.
Carefully look into the investment options that are offered by your current 401K plan.
She just turned 51, and after 50 you can put in $24,000 into a retirement fund.
Maximizing what you can put into a 401K is the greatest investment of all.
My wife works 28 hours, just for the health benefits.
You are basically paying interest back to yourself right?
FortWayne saysYou are basically paying interest back to yourself right?
I haven't done it, but have heard that when you borrow from your 401k, the banks who arrange it make damn sure they get their cut. Apparently you cannot do it without paying them.
FortWayne saysmell saysAll good comments but for sake of diversity I'd like to point out one great feature. Some allow you to borrow from your 401k decent amounts at low apr where all the interest goes back into your equities. Beats a bank loan mile high.
You are basically paying interest back to yourself right?
Yes. Of course you can't go over the yearly limit of contributions. And it's a win for them too since they get a percent or so in mgmt fees of the total value of your 401K. I am on my 2nd loan after paying one off in a year, payments get automatically deducted from your paycheck so you cant miss them and I used the addtl leverage for a 4x return on a stock I had heavily researched and was super bullish on.
Strategist saysThe option of investing in the S&P 500 index is offered on the 401K plans by my wife's company. Her company used T Rowe Price. They had lots of other options, at a much higher cost.
Yeah, but you just can't look at JUST the "cost" but have to consider overall returns. Sometimes paying a little bit more, but getting a multi-point higher return is worth it in the big picture, with an outside fund.
Strategist saysPassive funds like the S&P 500 index are the way to go.
Not this year so far....
Right wing - Stock market goes up - Heil Trump
Stock market goes down - Thank you Trump for standing up for the small guy
Hassan_Rouhani saysThere is a small processing fee, that's all.
How small though? Got numbers?
Trade war threatens 401k accounts
BTW, both now allow to take out so-called "residential loan" which makes the interest deductible.
Interest paid to yourself is deductible? I presume you are still talking about the 401k.
mell saysFortWayne saysmell saysAll good comments but for sake of diversity I'd like to point out one great feature. Some allow you to borrow from your 401k decent amounts at low apr where all the interest goes back into your equities. Beats a bank loan mile high.
You are basically paying interest back to yourself right?
Yes. Of course you can't go over the yearly limit of contributions. And it's a win for them too since they get a percent or so in mgmt fees of the total value of your 401K. I am on my 2nd loan after paying one off in a year, payments get automatically deducted from your paycheck so you cant miss them and I used the addtl leverage for a 4x return on a stock I had heavily researched and was super bullish on.
I trade as my 2nd job. The brokerage is already completely leveraged so the 401k loan goes in there. Note that the leverage is still less generally than with helocs or flipping. I needed that extra dough when the stock was low.
ThreeBays saysmell saysAll good comments but for sake of diversity I'd like to point out one great feature. Some allow you to borrow from your 401k decent amounts at low apr where all the interest goes back into your equities. Beats a bank loan mile high.
It's not usually advisable to use this kind of loan, as if you lose your job it becomes due for payback in a short time and anything you don't pay becomes taxable, plus a penalty. You're also removing money that would otherwise grow if left alone.
It's not advisable if you don't have any assets to pay back the loan. The loans are maybe 10% of my net assets. Also you pay back with interest so more money in the 401k. All depends on the timing if you think you can make more trading than your 401k funds then it's worth it. For me the 10k turned into 50k in a very short time. Of course there's risk so don't do this without any experience.
tovarichpeter saysTrade war threatens 401k accounts
Yeah, the zero interest rate policy was nowhere near as damaging as a potential trade war.
komputodo saystovarichpeter saysTrade war threatens 401k accounts
Yeah, the zero interest rate policy was nowhere near as damaging as a potential trade war.
Right? I swear Democrats only have fear mongering as a policy, that’s it.
Business owners that are not or only slightly affected can raise prices saying that China tariffs have forced his prices to increase.
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