Comments on: Increased 401(k) Contribution Rate http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 20 Mar 2010 19:54:44 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Flexohttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136916 Flexo Fri, 15 Feb 2008 18:20:11 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136916 Lisa: The market fluctuations aren't bothering me. I've got several decades to go before tapping my retirement funds, and I'm also stocking up in savings for the near term. Lisa: The market fluctuations aren’t bothering me. I’ve got several decades to go before tapping my retirement funds, and I’m also stocking up in savings for the near term.

]]> By: Lisahttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136912 Lisa Fri, 15 Feb 2008 17:31:25 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136912 That's great that you could increase to that level. I you concerned with the current market fluctuations? I'm in a bit of a panic about it, though I know it should be fine.Lisa That’s great that you could increase to that level. I you concerned with the current market fluctuations? I’m in a bit of a panic about it, though I know it should be fine.

Lisa

]]> By: Flexohttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136909 Flexo Fri, 15 Feb 2008 17:13:37 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136909 Nicole: I'm not sure if a non-deductible traditional IRA is worthwhile for me at this point. I'll have to look at the numbers. Nicole: I’m not sure if a non-deductible traditional IRA is worthwhile for me at this point. I’ll have to look at the numbers.

]]> By: Nicolehttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136900 Nicole Fri, 15 Feb 2008 15:40:08 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136900 If you are over the limit for a Roth, have you considered putting the money in a nondeductable IRA and then converting it in 2010 to a Roth? I have been funding a nondeductable every year for the past three years, and plan to convert to a Roth in 2010, which is when the income limits for Roth conversions disappear. You have to pay some tax when you convert, but that can be spread over two years, and then you can have the benefit of the Roth even if you don't meet the income requirements. If you are over the limit for a Roth, have you considered putting the money in a nondeductable IRA and then converting it in 2010 to a Roth? I have been funding a nondeductable every year for the past three years, and plan to convert to a Roth in 2010, which is when the income limits for Roth conversions disappear. You have to pay some tax when you convert, but that can be spread over two years, and then you can have the benefit of the Roth even if you don’t meet the income requirements.

]]> By: Daizyhttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136872 Daizy Fri, 15 Feb 2008 02:38:22 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136872 Do you have a goal amount for your retirement savings? When you reach that goal do you have early retirement plans or maybe plans to pursue other career options? I am wondering because when I calculate what my nest egg will be in 30 years it seems like more than enough for me. Of course many things could happen in the next 30 years but is there some point where you would stop contributing to your 401k and use the money for something else? Do you have a goal amount for your retirement savings? When you reach that goal do you have early retirement plans or maybe plans to pursue other career options? I am wondering because when I calculate what my nest egg will be in 30 years it seems like more than enough for me. Of course many things could happen in the next 30 years but is there some point where you would stop contributing to your 401k and use the money for something else?

]]> By: Adfectohttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136854 Adfecto Thu, 14 Feb 2008 22:56:19 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136854 Congrats on increasing the savings rate. I'm increasing mine each year when raise time rolls around. I'm a little short of my goal to save 20% of my gross. Within a year I should be there though. Then next will be to max both the Roth and 401(k). If my wife continues having earned income we'll likely open a Roth IRA for her as well (but that's not a sure thing). Congrats on increasing the savings rate. I’m increasing mine each year when raise time rolls around. I’m a little short of my goal to save 20% of my gross. Within a year I should be there though. Then next will be to max both the Roth and 401(k). If my wife continues having earned income we’ll likely open a Roth IRA for her as well (but that’s not a sure thing).

]]> By: Flexohttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136851 Flexo Thu, 14 Feb 2008 22:05:00 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136851 Luper: My Roth 401(k) is with my employer. I'm not investing in a Roth IRA this year because there's a good chance that I'll be over the income limit. If it turns out I'm not, I'll do a lump sum when I'm sure. In previous years, I did an automatic investment in my Roth IRA twice a month with TIAA-CREF, (from ING Direct) but I wouldn't recommend them (TIAA-CREF) to anyone. Luper: My Roth 401(k) is with my employer. I’m not investing in a Roth IRA this year because there’s a good chance that I’ll be over the income limit. If it turns out I’m not, I’ll do a lump sum when I’m sure. In previous years, I did an automatic investment in my Roth IRA twice a month with TIAA-CREF, (from ING Direct) but I wouldn’t recommend them (TIAA-CREF) to anyone.

]]> By: Luperhttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136847 Luper Thu, 14 Feb 2008 21:55:17 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136847 Is your Roth IRA through your employer?Presently, is your goal to hit your 15.5K 401K mark plus max out the $5K Roth contribution? Do you have money left over for taxable investing?Do you have an auto deposit set up for your Roth contributions? I need to set this up somehow as it is annoying to auto deposit in my checking then over to my ING savings and then to my brokerage account. anyways...i digress. good job with your savings! Is your Roth IRA through your employer?

Presently, is your goal to hit your 15.5K 401K mark plus max out the $5K Roth contribution? Do you have money left over for taxable investing?

Do you have an auto deposit set up for your Roth contributions? I need to set this up somehow as it is annoying to auto deposit in my checking then over to my ING savings and then to my brokerage account. anyways…i digress. good job with your savings!

]]> By: Flexohttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136831 Flexo Thu, 14 Feb 2008 19:33:16 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136831 Llama: Thanks... without the "outside" income, there is no way I could afford to put 33% of my salary away for retirement. My fingers are crossed that the "outside" income continues. Llama: Thanks… without the “outside” income, there is no way I could afford to put 33% of my salary away for retirement. My fingers are crossed that the “outside” income continues.

]]> By: Llama Moneyhttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136828 Llama Money Thu, 14 Feb 2008 19:11:42 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136828 At first I was astounded to see that you upped your contribution to 33% - that's way more than most folks can afford. But of course I forgot that you make a good bit outside of your day job. Kudos for being smart and tucking away that much for retirement. Still takes a lot of discipline. At first I was astounded to see that you upped your contribution to 33% – that’s way more than most folks can afford. But of course I forgot that you make a good bit outside of your day job. Kudos for being smart and tucking away that much for retirement. Still takes a lot of discipline.

]]> By: Flexohttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136822 Flexo Thu, 14 Feb 2008 18:13:03 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136822 Brian: That's correct, 33% of the gross salary from my day job. Brian: That’s correct, 33% of the gross salary from my day job.

]]> By: Brianhttp://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136819 Brian Thu, 14 Feb 2008 18:00:24 +0000 http://www.consumerismcommentary.com/2008/02/14/increased-401k-contribution-rate/#comment-136819 I'm assuming this is 33% of your salary income, but not your overall (including business) income, right? I’m assuming this is 33% of your salary income, but not your overall (including business) income, right?

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