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igottabeme
Its peanut butter jelly time!
Member since 1/08 2340 total posts
Name:
Wouldnt you like to know! ;)
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With all thats going on with the economy would you start a new 401k?
I just became eligible for my companys 401k plan. With all thats going on with the stock market, should I participate? Or just save my money? I'm considering just taking the money that I would have put into the 401k and putting it into my own savings account but then I would lose out on the company match.
I'm so confused by this whole thing. What would you do?
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Posted 9/29/08 9:34 PM  |
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DirtyBlonde
*****
Member since 11/07 7344 total posts
Name:
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Re: With all thats going on with the economy would you start a new 401k?
funny you should mention this - i enrolled in my company's 401K plan pretty much RIGHT before this all happened
the market's going to rebound, right?
:insert kinda scared face here:
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| Posted 9/29/08 9:40 PM |
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ChilisWife
God Bless America
Member since 5/05 3572 total posts
Name:
A.K.
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Re: With all thats going on with the economy would you start a new 401k?
I just joined a few months ago too! I am in it for the long haul, though, so I don't regret it. If anything, I figure I am buying in at low prices so when the market rebounds I'll be in good shape.
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| Posted 9/29/08 9:42 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: With all thats going on with the economy would you start a new 401k?
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
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| Posted 9/29/08 9:43 PM |
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KarenG2003
My BIG man and my little man!
Member since 4/08 1684 total posts
Name:
Karen
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Re: With all thats going on with the economy would you start a new 401k?
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
ITA
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| Posted 9/29/08 9:43 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: With all thats going on with the economy would you start a new 401k?
YES!!!
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| Posted 9/29/08 9:44 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: With all thats going on with the economy would you start a new 401k?
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
exactly!! Now is a great time to invest if you have the money to spare.
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| Posted 9/29/08 9:44 PM |
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OStewarts
LIF Adult
Member since 11/07 1096 total posts
Name:
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Re: With all thats going on with the economy would you start a new 401k?
think of it like buying things at a massive SALE but you can wait the week (or two) out to see what happens if you're nervous.
Message edited 9/29/2008 9:51:29 PM.
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| Posted 9/29/08 9:46 PM |
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tourist
Member since 5/05 10425 total posts
Name:
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Re: With all thats going on with the economy would you start a new 401k?
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low.
Exactly, plus your company matches! That's great. I wish mine did. Put money in, and just don't look at it for a while. 
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| Posted 9/29/08 9:53 PM |
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neenie
Member since 5/05 22351 total posts
Name:
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Re: With all thats going on with the economy would you start a new 401k?
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
ITA!
Im actually researching where i want to Up my allocations right now....
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| Posted 9/29/08 9:56 PM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: With all thats going on with the economy would you start a new 401k?
Def a good time! I just became eligible for my company's as well and am trying to figure out what funds to choose.
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| Posted 9/29/08 10:45 PM |
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MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
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Re: With all thats going on with the economy would you start a new 401k?
Great time to invest, just make sure to pick quality funds.
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| Posted 9/29/08 11:52 PM |
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NinaLemon
It's a boy!!!
Member since 10/07 6453 total posts
Name:
Jeannine
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Re: With all thats going on with the economy would you start a new 401k?
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
ITA! Now is the time to get in!
Message edited 9/30/2008 8:15:21 AM.
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| Posted 9/30/08 8:14 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: With all thats going on with the economy would you start a new 401k?
Yes, definitely.
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| Posted 9/30/08 8:16 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: With all thats going on with the economy would you start a new 401k?
Posted by igottabeme
I just became eligible for my companys 401k plan. With all thats going on with the stock market, should I participate? Or just save my money? I'm considering just taking the money that I would have put into the 401k and putting it into my own savings account but then I would lose out on the company match.
I'm so confused by this whole thing. What would you do?
Absolutely participate! This is actually a great opportunity to invest. You want to buy when stocks are down and they are. If you have the time frame (at least 3 years) to ride the market waves, then you should be investing in equities. Investing in cash products over a long term will likely get you a negative return when taxes and inflation are added in.
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| Posted 9/30/08 8:18 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: With all thats going on with the economy would you start a new 401k?
Posted by KarenG2003
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
ITA
I also agree.
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| Posted 9/30/08 8:20 AM |
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MommyofG
just the girls
Member since 5/05 9461 total posts
Name:
Janice
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Re: With all thats going on with the economy would you start a new 401k?
not unless they were contributing, if they are not no freakin way!
you can invest on your own- with no penalties later
with a 401k yes it is pre taxed NOW but when you go to get your money you have to pay tax on it then and some other fees too I was told by my financial advisor.
I invest on my own through mutual funds which is pre taxed too, you do a max of 8k through your IRA before taxes too so you get more money back on your taxes AND its pre taxed too!
Message edited 9/30/2008 9:15:05 AM.
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| Posted 9/30/08 9:12 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: With all thats going on with the economy would you start a new 401k?
i'm enrolling tomorrow... hr is off for the holiday
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| Posted 9/30/08 9:15 AM |
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DanaRenee
Fitness Junkie!
Member since 6/06 6470 total posts
Name:
Dana
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Re: With all thats going on with the economy would you start a new 401k?
I agree w/now being the BEST time. I'd sock away as much as possible at this point.
I just moved some cash to our brokerage account b/c I plan on buying ANYTHING the second I get wind of this bill being passed in some way shape or form.
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| Posted 9/30/08 9:18 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: With all thats going on with the economy would you start a new 401k?
Posted by MommyofG
not unless they were contributing, if they are not no freakin way!
you can invest on your own- with no penalties later
with a 401k yes it is pre taxed NOW but when you go to get your money you have to pay tax on it then and some other fees too I was told by my financial advisor.
I invest on my own through mutual funds which is pre taxed too, you do a max of 8k through your IRA before taxes too so you get more money back on your taxes AND its pre taxed too!
Most companies don't offer the opportunity to invest in a self directed IRA with pre-tax contributions. If they do, both the IRA and 401k are treated the same as far as taxation. The maximum someone can contribute to an IRA without catch up is $6000 for 2008. The maximum you can contribute to a 401k is a 100% of earned income or 15,500 (providing no catch up) whichever is less, for 2008.
The penalties for early withdrawal are the same for IRAs and 401k - 10% and ordinary income tax - there are some exceptions with SIMPLEs. A big difference is that a lot of 401ks can offer a loan which most IRAs can't.
If you use pretax money to fund an IRA, you can not take the deduction on your taxes because the money hasn't not been taxed and the IRS doesn't allow a double benefit.
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| Posted 9/30/08 9:24 AM |
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MsMBV
:P
Member since 5/05 28602 total posts
Name:
Me
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Re: With all thats going on with the economy would you start a new 401k?
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
ITA. DH just became eligible this month
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| Posted 9/30/08 9:46 AM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: With all thats going on with the economy would you start a new 401k?
Suze Orman recommended paying off cc debt now instead of investing more in a 401K.
I don't really know her or read her books, but I just thought it was interesting.
I had a VERY conservative portfolio, so I haven't lost a dime...I am thinking about going and allocating a bit more agressively.
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| Posted 9/30/08 9:54 AM |
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trnity44
I hope you stay beautiful baby
Member since 5/05 8356 total posts
Name:
Liz
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Re: With all thats going on with the economy would you start a new 401k?
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
I am starting my 401K with my company this week. Our CEO called a meeting last week- and told us all that if you aren't enrolled in the 401k yet- this is the BEST time to do it. He said that in 20 years, we will all turn around and say that these were the best purchases we could have made!
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| Posted 9/30/08 9:55 AM |
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MarisaK
HELLO Manolo !!
Member since 5/06 14562 total posts
Name:
Marisa
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Re: With all thats going on with the economy would you start a new 401k?
Posted by ave1024
Are you kidding? Now is probably one of the BEST times to enroll.
Prices are real low. I wish I could put more in, but I max it out every year.
Exactly -
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| Posted 9/30/08 10:04 AM |
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tourist
Member since 5/05 10425 total posts
Name:
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Re: With all thats going on with the economy would you start a new 401k?
Posted by Ophelia
Suze Orman recommended paying off cc debt now instead of investing more in a 401K.
I don't really know her or read her books, but I just thought it was interesting.
I had a VERY conservative portfolio, so I haven't lost a dime...I am thinking about going and allocating a bit more agressively.
Yeah, I am not panicking, but I think I could maybe use this time more wisely & should probably re-allocate.
I don't follow Suze much either, but I think she is usually an advocate of paying off debt before anything else.
If you have high interest rates, I guess it makes sense, b/c you can pay it off in
the relative short term, so you are no longer wasting money on interest payments, and in the time it took you to do that, if you had put that $ in your 401K, it wouldn't have earned much.
If your company matches though, I would think that it would be best to do a little of each if you can, but I am not an expert in the field.
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| Posted 9/30/08 10:09 AM |
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