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Generally monies can be withdrawn without penalty for purchase of a home.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★]

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

[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]

Originally Posted by Cez^_^

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★]

Originally Posted by 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.

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?

Originally Posted by linden

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]

Originally Posted by Cez^_^

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★]

Originally Posted by 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.

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

Originally Posted by linden

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?

[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

[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.

[linden]

Originally Posted by Cez^_^

gotcha 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★]

Originally Posted by 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.

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

Originally Posted by linden

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 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


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★]

[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