How Much Should I Be Putting Into My 401(k)?
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Listen to how ordinary people built extraordinary wealth—and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Christy Wright, Rachel Cruze, and John Delony.
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Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
These answers are not explained for someone who doesn’t understand but is trying to grasp
I’m a dividend investor, my wife and I have invested in the s&p500, both through my TSP with the government and through fidelity in her 401-k. Cashed out 370k from the S&P and invested with a full service broker.. Until about 3years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of the month at 59, while my wife will retire next year at 54. We currently have 5.7 million in out tex deferred savings.
The company I work for just changed theirs to match up to 6%. I'm young and the market is low so I'll be going the full match!
My company matches 4%. So I only invest in that traditional 401k up to 4% and then put the other 11% in Roth or up to the $6,000 limit. Then if that $6000 limit is less than my 11%, I put whatever percentage points left into my 401k or get a brokerage account and invest in something on the side of those 2?
He confused me with the numbers. i'm in my 20s my company is starting a 401k next month. The company is matching 6%. The way the provider explained it today he said if your salary/wages is $20,00 then * 6% is $1,200 but then he went ahead and said something about 25% of $1,200 would be $300 . Honestly the whole thing sort of confused me. ( I wish the guy would have just said for every $1 the company will give you xyz) someone did ask that in the meeting but he guy must have not heard him.
As much as you can afford!
Wait….so for example I have TSP. So my roth 401k is matched in traditional only. So should I be doing traditional vs roth?
A match isn't free money for a number of reasons. You can't touch it for decades without penalty– NOT FREE! What about vesting periods? If it takes 3 years to fully earn that match, and you end up staying in a lower paying job as opposed to switching companies, how much did you just lose? I recently switched jobs for a $25,000 a year increase. If I had stayed to earn some supposedly free company match, I would have lost more than $50,000! NOT FREE!
I think the caller misunderstood the company's 401k match policy. It's probably a half percent for every 1% contributed by the employee, not a half percent maximum.
Half a percent? Never heard of such a low match
This won’t help you if you want to retire before 55
So contribute a half percent for every other 1% match?
Most complicated answer I have ever heard on Ramsey show.
So darn confusing
401k’s are a scam. Can’t touch your money till you’re old af lol. Go ham early and put most of your check into VOO and retire in your 30’s.
I never include the match in my percentage to save.
Wait a minute, I thought we do 15% no matter what the match is
Ramsey needs to think and organize his thoughts before spewing out word diarrhea. He’s over complicating a simple guidance. Kenny was spot on, organized, and clear.
I strongly believe we all need to hear this, you've got to stop saving money only. Invest some part of it, if you really want financial freedom.
First and foremost…..THE BABY STEPS WORK!!!! At 53 I have 300k net worth, 60k a year income, I own everything outright with about 600-700 in monthly expenses (groceries are the only big fluctuation). I am putting 35% in my 401k and my company has a 7% match. I save 800-1000 per month over and above and still feel I’m waaaaaay behind since I want to stop working at 62! I have a Roth that I put 7k a year in on Jan 1st every year. I still need help with the extra savings. Dave call me please!
I understand the first 401k match, then the Roth, but why or how would / could you go to traditional IRA if you've already maxed out your Roth?
Should you still save 15% for retirement if im saving for a house?
What if the match is so good that it takes you more than 15% of your income to collect all the match
3:44 hahaha
Only match 0.5%? Why would a company even bother?
I’m maxing out as well as my wife and doing the catch up as 50. Keep at it !
ROTH 403B same thing?
Put away enough to get to your goal and forget about it. Whatever you receive after tax and after 401k you should save 20% or more and invest on Real Estate or stocks/cryptos.
match vs. roth vs. traditional… what does that mean?
Dave counts the match towards the 15%? Interesting. I have always thought of the company match as instant returns, but didn’t count it as my own investment.
The max that my company would allow is 16%. So that is what I put in. The company added 3% on the first 6% so I was getting 19% for the 22 years until our company was sold and we were laid off. With that executed plan, when we were laid off, I did not have to add any more to the IRA as long as I did not touch it until retirement in 22 years. So This worked out pretty well so far. I have not touched it for the last 10 years and i am just letting it grow. It should add up to about $7 mil in 10 years at the current rate of growth.
Stop tithing to fairy tale characters and invest the difference. There is your retirement.
15% in retirement. PERIOD!!! This is the very least.
People will be kicking themselves in few months if they miss the opportunity to buy and invest in Bitcoin as it's retracing….BE WISE