401k contribution - Yay or Nay

[PanhandleGlocker]

Good ol enrollment came up at my work for everything. Last almost two years of being here I haven’t contributed to my 401k and I wish I would have but was worried about the election at the time of starting this new job and my fears were true that The Big Guy got the job, although a Democrat in that seat is good for oil and gas prices, and that means we are making a lot of money, all I’ve heard from everyone else in my office is that their 401k’s have taken a lot of damage this last year.

Is the time right to contribute if I haven’t been contributing or should I wait. Company matches up to 6%… I somewhat listen to Dave Ramsey on financial advice and he says don’t contribute to retirement until all debt is paid off.. He also says to sell everything and eat rice and beans but I ain’t about that life.

So what say ye, OSA? Should I start contributing to 401k or put that money towards guns and ammo instead and bet on the odds I don’t even reach retirement age.

 

[joegrizzy]

pretty sure i've been hearing people losing 20% or so on 401k.

i think next year will be worse imo. 10% inflation isn't going away any time soon without MAJOR uh what do they call them....oh yeah "corrections".

 

[Ryan500L]

Been putting into mine for the last 24 years, I keep mine in "safe" fund no high risk stuff.

 

[mouthpiece]

You're giving away 6% if you don't put in the matching.
now is the time to buy while it is low, or "down" .
this advice worth what you paid me for it.

 

[swampratt]

I contributed as did the wife and many friends.
Yea you take hits some years but my 17,000 that I made in 9 years and then rolled over into an IRA after I quit back in 2020 is now worth over 65,000 and I have not put a penny in it since.
This last drop hurt it a little as it was up to 86,000.


My friend that works for OGE has over 1 million in his 401K.
Another buddy borrows against his 401K to buy houses and pays himself back.
All his houses are paid for and not a single one worth less than 140,000.

I only put in as much as the employer would match like your 6% but i also claimed 14 dependents to get a lot on my check and used that money to pay off my houses quick.

Yea I paid in at the end of the year because I only had a wife and 2 kids but it all evens out.
The savings I made on knocking those payments out was super beneficial.

I did not even know about Dave Ramsey i just know math.

 

[SlugSlinger]

Contribute the matched amount. Is it 100% match up to 6%? If so, you are essentially getting 100% return.

You can put the funds in a cash type fund if you don’t want to buy stocks. It should earn a minimal amount of interest.

If a Roth is available, you are taxed when the contributions are made, but not on the growth.

If you can handle some risk, invest in a S&P indexed fund. It will have a low expense ratio and an average market return.

Once you start investing, don’t stop, especially in down market cycles.

 

[joegrizzy]

My friend that works for OGE has over 1 million in his 401K.
Another buddy borrows against his 401K to buy houses and pays himself back.
All his houses are paid for and not a single one worth less than 140,000.

I only put in as much as the employer would match like your 6% but i also claimed 14 dependents to get a lot on my check and used that money to pay off my houses quick.

wait, are you saying you claimed tenets as dependents?

 

[joegrizzy]

Once you start investing, don’t stop

and that is why nothing will ever change.

everyone should be divesting.

 

[Dorkus]

Once you start investing, don’t stop, especially in down market cycles.

Especially then.

You should always invest in your retirement even though the markets are down, they will come back up. They always do.

I almost pulled out in 2008 when everything went really sideways. Glad I didn't as I am way ahead even with two down years.

 

[swampratt]

wait, are you saying you claimed tenets as dependents?

When I began working at FAA they asked me how many dependents and I claimed 14
so they would not hold as much tax from my paycheck but at the end of the year when you file taxes that number of 14 does not have to match the tax return form.
I only claimed the 2 kids and the wife and I filed together.
Yes I paid in nearly 2,000 at the end of the year but I saved much more than that amount paying the house off early.

Not everyone needs to make that move but for me is was a smart money move.
I lived way below my means and back then.
Still do.