Tom Cashel said:I am hijacking this thread!
The above post represents my current opinion of 401k plans, which is, to be honest, born of fear. I am completely ignorant of what 401k plans do, except that they are supposed to provide funds for my retirement. I am new to the world of salaried employment (1 year veteran), but I'd like to know more. Human Resources explanations have not cut the mustard. Please help!
Oh. And what is the chance that the chance is actually 1:50?Bonedagger said:The 56 calculations that have been made say that the chance of the meteor hits earth is 1:50. But with the uncertainty normally connected with those calculations it could just as well be 1:50.000.
you devote a portion of your pay to a retirement fund. usually this is a mutual fund or group of mutual funds as risky or safe as you see fit. if you have a good employee, they will match your contribution up to a certain %. if you put in 6% of your gross pay, sometimes your employer will match up to that level. the percentages vary, but employers rarely match above 6%.
no touching the 401k fund before age 65 without huge IRS penalties, either.
you should always put in up to your company match % - as someone said, it's free money. what you do over and above that is contingent on your stage of life and future plans. some people sock aways as much as 15% of their pay in 401k's.
Zappo said:Oh. And what is the chance that the chance is actually 1:50?