educate me 401-k

[TheIglu]

My last job put in double what I was putting in, up to 10%. It was unheard of.

New job only has a 3% match. Ooof.

[Paul_E_D]

3 percent match here. But it's supplemental to the mandatory 11 percent i put into the county pension. Meh. It's not a great deal. But the pension is somewhat interesting as it pays out for life.

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[tsorfas]

My last job put in double what I was putting in, up to 10%. It was unheard of.

New job only has a 3% match. Ooof.

Holy shit!

[union]

Well, I am doing the 8%, so they contribute 12% for a total of 20%. Better than any company I have worked for so far. Usually its 50% up to 6% or something.

Yeah that’s really good. 50% up to 6% match is the most common
100% of 5-6% is considered very good.
Obviously there jobs like yours or the 10% regardless that’s really amazing.

I have studied this stuff so much since starting this thread. And it’s ridiculous how many times simple and consistent outperforms everything else.

Toyota is doing something similar for what I consider newer guys. That's people that been hired within the last 10 years or so. I'm not exactly sure but it is a significant increase of company funding. I get the typical 50% up to 6% in my 401k. However I also get a defined pension which the people that got the "enhanced" 401k plan do not get. Although the higher match is sweet especially in good markets I'd rather keep what I have since I can count on the pension in the end.

Simple and consistent are the way to go. I started at the 6% since I didn't want to lose free company money. Over the years I've been lucky enough to be able to up my contribution to 15%. It hurts the play fund a bit but the results speak for themselves. Not too long ago a guy at work asked me what I was putting in for percent into my 401k. He was hired about a month before me. He has been doing just the 6% the entire time. I have 2.5x the money in mine. I don't mess with the investments often. Every now and then I'll change up the percentage each gets depending whats going on but unless an option has been dropped from my plan or added I just keep things status quo for the most part. I do however keep an eye on it on a regular basis.

[csmutty]

Sooo Lending Club decided that they are no longer going to be doing peer to peer lending. That dies on the 31st. Going to be a royal pain in the ass to wait for funds from all the existing loans in order to transfer out. Considering there is a maintenance fee associated with accounts below $10k.

[jimmycapp]

Company used to do 100% up to 10 plus an extra half percent every 5 yrs of age from 20 up, so at 35 yrs old they match 11.5 percent. Plus profit sharing. We got acquired 2 years ago and that got cut. Still get profit sharing and company stock benefits, but I think the match is 6% now.

[xrocket21]

My last job put in double what I was putting in, up to 10%. It was unheard of.

New job only has a 3% match. Ooof.

So you put in 10%, they do 20% for total of 30%? That's insane!

[TheIglu]

Yes, it was.

But the downside of being in a non profit was the lower salary.

Leaving meant a $30k salary bump, but only $18k after retirement and healthcare was factored in.

[tsorfas]

Sooo Lending Club decided that they are no longer going to be doing peer to peer lending. That dies on the 31st. Going to be a royal pain in the ass to wait for funds from all the existing loans in order to transfer out. Considering there is a maintenance fee associated with accounts below $10k.

the CRASH is coming... lol

[tsorfas]

Yes, it was.

But the downside of being in a non profit was the lower salary.

Leaving meant a $30k salary bump, but only $18k after retirement and healthcare was factored in.

crazy how that works huh? about 5 years or so ago I got "blinded" by a big (for me) offer I think something like 30K base salary and 20k in commission (at risk) to jump ship. What I didnt factor in was less 401k match, how draining double commute (+) in traffic would be (never felt more tired in my entire life), and above all, shitty leadership. Holy crap. When I left (when they denied my to take my allowed vacation time to go the newcomers week for the Isle of Man) I did not have a job lined up, still had all my bills running, etc. and my wife was like "good, you have been miserable there". Not what I was expecting leaving a 100k+ job with nothing lined up but it all worked out.

[csmutty]

the CRASH is coming... lol

Nah. They wouldn't be at risk really. They don't actually lend any money. Their investors would be screwed haha.

[nhbubba]

We get 6%. Management loves to tell us that this is "one of the best matches in the business".
Nice to learn that is bullshit as well.

That said, I'll take it.

[Not Sure]

I was on an end-of-year wrap up / 2021 outlook call a few days ago with a handful of guest speakers. The topic of staying the course over time came up (as it usually does on those type of calls) and a presenter showed the slide below. It's a great visual and shows the in-year dips that consistently occur over time, along with the majority gains, over a forty year period. In any given year where there has been a gain, the red number represents the dip/correction you had to sit tight through to realize the growth. The +4 for this year was through Q3 I believe. It's quite higher than that now obviously.

[jimmycapp]

Interesting. I got my last paycheck for the year, expecting my normal 401k contribution to be in the regular bank deposit, since I hit 19,500 last check. Nope, it was contributed as post tax 401k contribution. Company also matched it, which I wasn't expecting (though I guess I should have). Need to figure out how to roll it from Vanguard 401k to my vanguard Roth.

[boosten lebaron]

What type of returns are good for a 401k account right now given the market? I am fairly conservative and am seeing a 2.56% ytd return which seems a bit low to me but not so bad all things considered and my relative low risk investment strategy. Just wondering what the thoughts are on my number.

[jimmycapp]

25% up in 401k account. 90/10 market index funds/bonds

[JettaJayGLS]

Roughly that ^^^

[nhbubba]

You guys are up 25% in ~20 days? That's stunning.

[TheIglu]

Something tells me they mean 1yr returns.

[nhbubba]

Doesn't "ytd" mean "year to date"? I have a feeling we are comparing apples to oranges here.

VTSAX YTD return is 2.15%. 1 year return is 19.85%.

Up 2.5% over the last 20 days is good.
Up 25% over the last year is really good.

[nhbubba]

I couldn't help but snap a line before bed last night recording where every single one of my accounts was the night before inauguration. Lets see what happens next.

[Vovchandr]

For 2020 year I appear to be around 17.8%

Regular target year index fund

[JettaJayGLS]

Sorry, I missed the YTD part. I don't see an annualized growth number, but 401k (86% stocks) is up 10.25%. IRA (98% stocks, almost all index funds) is up 3.4%. These are simple growth numbers from 12/31 to today. That what you're looking for?

[boosten lebaron]

What type of returns are good for a 401k account right now given the market? I am fairly conservative and am seeing a 2.56% ytd return which seems a bit low to me but not so bad all things considered and my relative low risk investment strategy. Just wondering what the thoughts are on my number.

My screw up guys. I thought ytd was back tracking a year, not just since the first of this year. I didnt even bother to look what last years was, i will do that later. I suspect its not bad but no where near 25%.
2.65 was just for these last few days which is nothing to go by.

[jimmycapp]

That makes more sense.