Comments on: Maxing Out Your 401K and IRA, Rational? http://www.financialfreedumb.com/2006/04/19/maxing-out-your-401k-and-ira-rational/ A blog about everything, mostly about personal finance. Wed, 18 Jan 2012 02:44:13 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Financial Freedumb and Brownie - A PF Blog » America is Losing It’s Greatness, and Nobody Can Do Anything About It — The End of the American Empire http://www.financialfreedumb.com/2006/04/19/maxing-out-your-401k-and-ira-rational/comment-page-1/#comment-65355 Financial Freedumb and Brownie - A PF Blog » America is Losing It’s Greatness, and Nobody Can Do Anything About It — The End of the American Empire Wed, 24 Sep 2008 17:03:36 +0000 http://www.financialfreedumb.com/?p=110#comment-65355 [...] funny, I once wrote about a debate between myself and a friend about saving for retirement and the current situation of all the financials in the US make me wonder, maybe I shouldn’t [...] [...] funny, I once wrote about a debate between myself and a friend about saving for retirement and the current situation of all the financials in the US make me wonder, maybe I shouldn’t [...]

]]> By: freedumb http://www.financialfreedumb.com/2006/04/19/maxing-out-your-401k-and-ira-rational/comment-page-1/#comment-164 freedumb Thu, 20 Apr 2006 16:18:00 +0000 http://www.financialfreedumb.com/?p=110#comment-164 No, not insult taken...I think your argument is very reasonable. I think it does make sense to put as much as possible away for retirement...match and tax advantages alone are enough reason. But it's not like this money is permanently locked away until retirement...you can still take it out if necessary...so it just makes sense all around...anyway, I don't plan on talking about retirement with him very often :) Yes, he is a good friend...we just don't agree on this point. TADollar, yeah I can't think of a better way to spend money either! Saving for the future...best purchase ever! No, not insult taken…I think your argument is very reasonable. I think it does make sense to put as much as possible away for retirement…match and tax advantages alone are enough reason. But it’s not like this money is permanently locked away until retirement…you can still take it out if necessary…so it just makes sense all around…anyway, I don’t plan on talking about retirement with him very often :) Yes, he is a good friend…we just don’t agree on this point. TADollar, yeah I can’t think of a better way to spend money either! Saving for the future…best purchase ever!

]]> By: LAMoneyGuy http://www.financialfreedumb.com/2006/04/19/maxing-out-your-401k-and-ira-rational/comment-page-1/#comment-163 LAMoneyGuy Thu, 20 Apr 2006 14:37:00 +0000 http://www.financialfreedumb.com/?p=110#comment-163 I thought more about this. Your friend is a fool. Why does he buy anything? Why not rent? Why work? Why save anything? Learn to be a great bartender, and travel the world, stopping over to tend bar for a few months each city at a time. Max out your credit cards while you're at it. Why exercise? Why eat healthy? You could forgo the juicy steak for the grilled fish or salad, and get hit by a bus tomorrow, and what good did it do you? I would say that your friend is just trying to be one of those naysayer contrarians, but if he really isn't saving in a Roth, well, I don't know. Anyway, if he's a good friend, then I'm sorry if I unsulted him. But I just can't understand reasoning like this. I thought more about this. Your friend is a fool. Why does he buy anything? Why not rent? Why work? Why save anything? Learn to be a great bartender, and travel the world, stopping over to tend bar for a few months each city at a time. Max out your credit cards while you’re at it.

Why exercise? Why eat healthy? You could forgo the juicy steak for the grilled fish or salad, and get hit by a bus tomorrow, and what good did it do you?

I would say that your friend is just trying to be one of those naysayer contrarians, but if he really isn’t saving in a Roth, well, I don’t know.

Anyway, if he’s a good friend, then I’m sorry if I unsulted him. But I just can’t understand reasoning like this.

]]> By: LAMoneyGuy http://www.financialfreedumb.com/2006/04/19/maxing-out-your-401k-and-ira-rational/comment-page-1/#comment-162 LAMoneyGuy Thu, 20 Apr 2006 01:56:00 +0000 http://www.financialfreedumb.com/?p=110#comment-162 As TADollar mentioned, most of us will make it to retirement age. Besides, it's simply smarter to plan for the future, but enjoy today. If he's so concerned, he should get the match on the 401k, and make his max roth contribution. He can take his principal out of his roth ira at any time without penalty. Let him know that he's welcome to save outside of retirment plans, and he'll still be doing better than the majority of the population. But he will be forgoing a lot of tax benefit. As TADollar mentioned, most of us will make it to retirement age. Besides, it’s simply smarter to plan for the future, but enjoy today. If he’s so concerned, he should get the match on the 401k, and make his max roth contribution. He can take his principal out of his roth ira at any time without penalty.

Let him know that he’s welcome to save outside of retirment plans, and he’ll still be doing better than the majority of the population. But he will be forgoing a lot of tax benefit.

]]> By: TADollar http://www.financialfreedumb.com/2006/04/19/maxing-out-your-401k-and-ira-rational/comment-page-1/#comment-161 TADollar Wed, 19 Apr 2006 16:42:00 +0000 http://www.financialfreedumb.com/?p=110#comment-161 Statistically-speaking, odds are pretty good that most of us will reach old age. Question is whether you want to have savings to tap, or be poor and live off social security (if it's around) and handouts. We max out all tax advantaged accounts available to us. My employer doesn't offer a 401K, but my husband just opened a self 401K. Before that, he had a SEP-IRA. If we aren't around to use this money, it will go to loved ones who can. We live life to its fullest, and still manage to sock away savings. I can't think of a better way to spend it then reserve it for our future. Statistically-speaking, odds are pretty good that most of us will reach old age. Question is whether you want to have savings to tap, or be poor and live off social security (if it’s around) and handouts. We max out all tax advantaged accounts available to us. My employer doesn’t offer a 401K, but my husband just opened a self 401K. Before that, he had a SEP-IRA. If we aren’t around to use this money, it will go to loved ones who can. We live life to its fullest, and still manage to sock away savings. I can’t think of a better way to spend it then reserve it for our future.

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