401K guys

[Cez★]

so the new company i got rolled onto has made me eligible to enroll into or out of (dont think i was ever in?) their 401k plan. john hancock is the plan provider. have until july 13 to make a decision. me being the financial poor mexi i am i have no idea how this shit works. so if any of you guys with or without a plan have any advice or knowledge to throw at me please do so. beginning from the beginning if you have a good knowledge of how it all works. should i get one or what? should i talk to me employer aboot this first? i can copy over parts of the email if needed

[linden]

does your employer offer matching or anything like that

[Cez★]

Lol no. Says they have the right to make a year end matching contribution but not guaranteed

[lowerc]

I'm not american so do not have a 401K. Did a quick wiki search and it is very similar to our system up here.

A couple points to note:
If employer matches it's a great investment. Your gamble on if you think they actually will. I would ask other employees on the history.

Money is very hard to get at if you need for emergency. It's a good way to save for retirement but also have another stash for emergency that is easier to get at. Basically don't put all your eggs in one basket.

Generally monies can be withdrawn without penalty for purchase of a home. They have to be repaid but that's no big deal. Employers can restrict that I think. Ask them about it.

[Cez★]

:shake:

Ive read that matching contritubtions is win. I already have a lil bit of money go to my savings. I'd end up having less on hand to spend having this thing. Which is the only thing really concerning me.

Good call on asking other employees about it. Too bad I don't know any :roflpow:

[lowerc]

When you say a little less money now, how much you talking? Think you would even notice it? Once you get into it and you are used to budgeting with what you have you'll be fine.

As for saving for retirement, there's no time like the present. The younger you are when you start, the easier it is. I know you are young enough that retirement seems so far away but in a few years you'll be glad you did.

Employer should also be able to tell you what they paid, if anything, in the past.

[linden]

Lol no. Says they have the right to make a year end matching contribution but not guaranteed

well the only guarantee is that by not contributing you won't get anything. If you wanting to save for the future it makes sense, because you not loosing money and you can get free money.

as far what to invest in it is hard to give you one answer. Ive had success with large companies like anheuser busch i close to doubled my in 24 months because of the buy out. I did have some success in mutual funds but unfortunately lost about 40% of that in the last few years with the economical decline. Ive since looked back over those mutual funds and will be selling them soon. I dont like all the fees and other things you pay for them and I like dividends. So im looking to go back to big company stocks that pay good dividends like coke cola and at&t.

[Cez★]

When you say a little less money now, how much you talking? Think you would even notice it? Once you get into it and you are used to budgeting with what you have you'll be fine.

As for saving for retirement, there's no time like the present. The younger you are when you start, the easier it is. I know you are young enough that retirement seems so far away but in a few years you'll be glad you did.

Employer should also be able to tell you what they paid, if anything, in the past.

Well I'm usually around $250 for part time right now. Weekly paid
Most of the money is mine. Since only bill is the cable which I van cancel anytime and cellphone which is ending in a few months. Already kinda good at budgeting but sometimes (like recently with class) I've had to budget real good.

And Yea I should start saving. Even if its not a lot

They say I need to invest up to 4% of their compensation. Is that 4% of me pay? Weekly?

well the only guarantee is that by not contributing you won't get anything. If you wanting to save for the future it makes sense, because you not loosing money and you can get free money.

as far what to invest in it is hard to give you one answer. Ive had success with large companies like anheuser busch i close to doubled my in 24 months because of the buy out. I did have some success in mutual funds but unfortunately lost about 40% of that in the last few years with the economical decline. Ive since looked back over those mutual funds and will be selling them soon. I dont like all the fees and other things you pay for them and I like dividends. So im looking to go back to big company stocks that pay good dividends like coke cola and at&t.

So how's that work with big companies? Do you buy their stock or something like as an investor or what? How much do you invest? What happens to those dividends?

[lowerc]

yes, would be 4% of gross income (pre-tax)
at that much money I guess you don't pay much income tax anyways. Would be around $10 a week.

lay off the jitb, chick-fil-a, whatever for one or two meals and you're set.

[linden]

Well I'm usually around $250 for part time right now. Weekly paid
Most of the money is mine. Since only bill is the cable which I van cancel anytime and cellphone which is ending in a few months. Already kinda good at budgeting but sometimes (like recently with class) I've had to budget real good.

And Yea I should start saving. Even if its not a lot

They say I need to invest up to 4% of their compensation. Is that 4% of me pay? Weekly?

in my experience it usually your employer will match you contribution up to x% of your salary. if you are saying its 4%

basically to keep the math easy

if you make $10,000 a year they will match what you put in up $400 annually. if you only put in $200 you will only get $200 worth of matching


So how's that work with big companies? Do you buy their stock or something like as an investor or what? How much do you invest? What happens to those dividends?

yes i buy stock in a company as an investor. how much i invest varies there are what is called penny stock where you can puy shares for as little as $.01 per share but they are very high risk companies typically very new and usually don't pay dividends because all profits made are being used to reinvest in the company itself to make the company grow. larger companies like at&t which is trading in the $13 per share range, at&t is up $.13 right now meaning for every share you own its worth an extra $.13 if you owned 100 shares you would be up $13 on the day so far if you wanted to sell. dividends are my share of the companies profit if i own the stock in my regular portfolio i can either opt to receive a check every year or reinvest my dividends and buy more shares. being a 401k its untaxed income so it make sense to just leave the money in the 401k and reinvest so you dont have pay penalties on the money.

[Cez★]

yes, would be 4% of gross income (pre-tax)
at that much money I guess you don't pay much income tax anyways. Would be around $10 a week.

lay off the jitb, chick-fil-a, whatever for one or two meals and you're set.

gotcha :shake: i dont eat out much. usually on fridays when at work all day. or buying groceries once a month or so.

in my experience it usually your employer will match you contribution up to x% of your salary. if you are saying its 4%

basically to keep the math easy

if you make $10,000 a year they will match what you put in up $400 annually. if you only put in $200 you will only get $200 worth of matching


yes i buy stock in a company as an investor. how much i invest varies there are what is called penny stock where you can puy shares for as little as $.01 per share but they are very high risk companies typically very new and usually don't pay dividends because all profits made are being used to reinvest in the company itself to make the company grow. larger companies like at&t which is trading in the $13 per share range, at&t is up $.13 right now meaning for every share you own its worth an extra $.13 if you owned 100 shares you would be up $13 on the day so far if you wanted to sell. dividends are my share of the companies profit if i own the stock in my regular portfolio i can either opt to receive a check every year or reinvest my dividends and buy more shares. being a 401k its untaxed income so it make sense to just leave the money in the 401k and reinvest so you dont have pay penalties on the money.

ok gotcha. my preconception was right. now what about when said at&t stock tanks to say $12.50. where would the loss come from?

another question. say i quit my job. id still have the 401k right? would everthing i invested in while working still stay there? all of it would be transferrable to whatever new company i join?
is this something to ask my employer?

[lowerc]

If stock goes down then it's really a loss on paper. You still have same number of shares so has opportunity to go back up. You only realize the loss if you cash out. Not like it goes down 10 cents and you have to pay 10 cents out of your pocket.

401K is yours. if you quit/get fired/whatever then you will be able to roll it into new company or a private plan. You can ask them for more details on how it happens but it's not like you lose the money invested or anything.

---------- Post added at 12:40 PM ---------- Previous post was at 12:38 PM ----------

you check out that video yet?
:creepygusta:

[Cez★]

What if company goes bust? And say I open 401k nd put $100 in. I can only buy stock that's below thy right?



Nah man. Has to wait. At work :emo:

[lowerc]

With my plan the money is not actually in the hands of the company. We have a third party financial firm looking after all the details. Company just deducts money off my pay, matches it and hands it over to financial company.

Most of my shit is in mutual funds but I assume individual stock would be similar. You can have fractions of a stock. If I put in $50 a week and shares are $11 then I get 4.54 shares. Don't see why you couldn't put $100 towards a $150 stock and get .66 shares.

Financial firm looks after all that for me. :shrug:

[linden]

gotcha :shake: i dont eat out much. usually on fridays when at work all day. or buying groceries once a month or so.



ok gotcha. my preconception was right. now what about when said at&t stock tanks to say $12.50. where would the loss come from?

another question. say i quit my job. id still have the 401k right? would everthing i invested in while working still stay there? all of it would be transferrable to whatever new company i join?
is this something to ask my employer?


to keep the math simple i just use round numbers but if you bought 100 shares at $10 a share you would have $1000 invested. if the next day the stock dropped $5 a share you would still have 100 shares but it would be only valued at $500. and vise versa if in a week it went up to $15 a share you would 100 shares valued at $1500. But you can never loose more then you put in.

your 401k is yours no matter where you work but obviously your x-employers contributions would cease. You can roll it into your new companies program or keep it private.

If a company goes bust typically 2 thing happen either its bought out and you're payed pennies on the dollar for your shares or the company is liquidated and after all debtors are payed off what ever is left belongs to the stock holders and is divided up based on the number of shares they own

[Cez★]

With my plan the money is not actually in the hands of the company. We have a third party financial firm looking after all the details. Company just deducts money off my pay, matches it and hands it over to financial company.

Most of my shit is in mutual funds but I assume individual stock would be similar. You can have fractions of a stock. If I put in $50 a week and shares are $11 then I get 4.54 shares. Don't see why you couldn't put $100 towards a $150 stock and get .66 shares.

Financial firm looks after all that for me. :shrug:

ahh thanks! :shake: thought you would have to purchase whole shares.

to keep the math simple i just use round numbers but if you bought 100 shares at $10 a share you would have $1000 invested. if the next day the stock dropped $5 a share you would still have 100 shares but it would be only valued at $500. and vise versa if in a week it went up to $15 a share you would 100 shares valued at $1500. But you can never loose more then you put in.

your 401k is yours no matter where you work but obviously your x-employers contributions would cease. You can roll it into your new companies program or keep it private.

If a company goes bust typically 2 thing happen either its bought out and you're payed pennies on the dollar for your shares or the company is liquidated and after all debtors are payed off what ever is left belongs to the stock holders and is divided up based on the number of shares they own

thanks for easy math :high5: some good advice for a newb like me. now i have a more complete general sense of how it works.

now on the investing part. do you decide where to invest and then call up the group handling it for yall? or can yall change it up yourselves? also, who do you guys have your 401k with? id be with john hancock

[stonehenge]

Mine is matched by le employer. Although I don't know if mine is actually called a 401k or just a retirement plan from the state. Either way it works the same afaik.

[Cez★]

waht do yall foos buy into?

[stonehenge]

Ah mine must be different. None of that shit, just hiding money away for later.

Sent from my Galaxy Nexus using Tapatalk 2

[Cez★]

plzgo then fgt :dolan:


jk brah.

[VmaxEngage]

Think mine was John Hancock.

Had like $50 in it that I forgot about for like 3 years, and since it had been 3 years since my last deposit they started taking a fee out of it.

All in all, I called and got my check from them a few months ago.

All of $4 was left. Assholes

[Cez★]

:pow:

[JayBo]

I have 5800 in a 401k from.when I worked at the bank.
Well I called to cash it out and get my monies and...
My account is in "positive termination". What that means I have no idea. Bit basically, the FDIC took it over once they closed the bank and right now the irs has the accounts frozen

BIONIC

[Cez★]

u never getting tthat money or what/

[JayBo]

I should be able to.. but no idea when

BIONIC

[Cez★]

fgt government

[stonehenge]

:serio:

[JayBo]

Make mad.
Wants monies

BIONIC

[shootermcgavin003]

wife does 401k retirement but none of the stock bs..........they match hers. one good thing is if she left her job for another that does 401k shit just transfers in.

---------- Post added at 12:07 PM ---------- Previous post was at 12:06 PM ----------

mine is state retirement like juans........its a little different.

[linden]

I have 5800 in a 401k from.when I worked at the bank.
Well I called to cash it out and get my monies and...
My account is in "positive termination". What that means I have no idea. Bit basically, the FDIC took it over once they closed the bank and right now the irs has the accounts frozen

BIONIC

Was the account held at the bank that went under

Sent from my PG86100 using Tapatalk 2

[shootermcgavin003]

good question cause usually 401k is untouchable by anything to do with the banks

[JayBo]

no. Is with a company called american funds.
Investment corp.


I also have teacher retirement w the school. I no touch that eva!

BIONIC

[shootermcgavin003]

cant you rollover the other one into your teacher shit

[stonehenge]

mine is state retirement like juans.....

:ohyou:

[shootermcgavin003]

17 to go

[JayBo]

Can. But want to use some of it .. actually.. I oughta roll it, and mt teacher retirement into an IRA somewhere

BIONIC

[Cez★]

whats this mean?
after you terminate employment, your employer reserves the right to charge your account for your pro rata share of the plans administratoni expenses. regardless of whether your employer pays some of these expenses on behalf of current employees?

pro rata?

[stonehenge]

sounds like a rat that knows what he is doing :chin:

[Cez★]

Word

---------- Post added at 09:12 AM ---------- Previous post was at 09:03 AM ----------

also. what would stop me from opening up a private 401k?private as in i take direct charge with my employer having no (i assume) control, say in it? can taht be done?

[lowerc]

Pro rata

http://epicsun.com/wp-content/uploads/2012/03/master-splinter.jpg



Actually I think it just means portion of. similar to prorated.

You can have your own private investments but then you have no chance of getting company match. Also you would be paying into it with taxed income so govt fgts would hold your income tax dollars until you claim it during tax season. If it's deducted from your pay they do it before taxes so you would have more money in the investment than the govt fgts hands.

[shootermcgavin003]

yeah i agree

[stonehenge]

Gov fgts plz go

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[shootermcgavin003]

Gov fgts plz go

Sent from my Galaxy Nexus using Tapatalk 2

aint we gov fgts?

[stonehenge]

kinda :cheeky:

but not rly :crossarms:

[shootermcgavin003]

i more gov fgt than you actually

[stonehenge]

yeah but i be referring to the govt fgts that tax our moneys and whatnot, you don't tax monies, you dispash so therefore not govt fgt, just work for govt fgts :smileshrug:

[linden]

now on the investing part. do you decide where to invest and then call up the group handling it for yall? or can yall change it up yourselves? also, who do you guys have your 401k with? id be with john hancock


You can either do your own research and tell them what you want bought. They can also offer advise but sometimes they can ban be driven by their incentives. you can also set up so you can buy and sell on your own online depending who you are with. i dont have a 401k i have a simple ira at a small local firm but i want to close it out and open an online account so i can do my own shit

[Cez★]

Mhmm. Guess I'll open this one up nd ask what will happen when I quit

[shootermcgavin003]

yeah but without tax monies i no get paid

[2005_Silverado]

just get it and dump 3-4% in it. if they match, cool...if not then its ok. Go aggressive with ur portfolio and forget about it. When u quit, u can usually keep contributing or roll it over to ur own IRA/401K or new emlpoyers plan. U can cash it out but ur hit with 20% penalty levied by le IRS....UNLESS u haz undue financial hardship...they haz a test for it and u can claim it if u qualify...or if u buying a home too.

[Cez★]

what do you mean agresive?

[2005_Silverado]

401k plans have diff level of plans...some are more safe (Conservative) as others pero in return offer less $$$ gaining potential. The riskier (Aggressive) u go, the more stocks the 401k company will buy and keep in ur portfolio...this is where u have the most chances of making or losing money. Being a young fella like urself, Id go aggressive. Leave le conservative shit for old geezers.

[Cez★]

can i change mine? cuz i htink theyd sign me up on conservative plan

[2005_Silverado]

yeah...i could change mine online...u gotta find out how ur 401k fgts do it

[Cez★]

maybe i can. i gotta send in papers authorizing that i want in. then maybe i can change. idk. need to shoot email/call peeps that woudl hold portfolio

[Cez★]

If you were to leave employment, you can rollover your 401(k) monies to a non-Roth IRA or qualifying 401(k) plan or cash them out.



You can change how your monies are invested by choosing how you want the money to be allocated in your 401(k), we simply set you up with a less risky option and you can change it.

Hope this helps



so i guess i can go ahead and has 401k?

[2005_Silverado]

send papers, they will send info package with all that shet...its pretty easy once you register...u can check performance and what not.

:doit:

[Cez★]

:fistbump:

also how much do i want allocated to it each week? it says "i plan to give $___ or ___%'

[2005_Silverado]

plz send corsa as token of appreciation :shake:

[Cez★]

damn brah just saw ur post my bad brah :whoapanda:


so i was signing up for that shit and chose aggressive. then theres another lil link that says "it is important to understand the investment options available in your plan. you have access to see,and select from, all the options available to you by clicking the other investment options button"

---------- Post added at 08:30 AM ---------- Previous post was at 08:28 AM ----------

so i click and it takes me to a build your own portfolio where i can choose from conservative to aggressive funds. the aggressive one has like 6 funds in it. do i need to choose from tere? or by me selecting aggressive on previous form all that is needed?

[2005_Silverado]

shit, idk...i just hit aggressive and it did it all for me :hmm:

[Cez★]

I'll try that