Reply to Anyone NOT maxing out your 401(k) even though you're making decent money?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]*raises hand* we're contributing but not maxing out. We have really sound personal finance habits but very little faith in the future of the economy. Signed, disallusioned millennial.[/quote]

I am curious where you put your money that you consider safer than a 401k, given your lack of faith in the future of the economy.  Gold bullion?  What investments do you think are immune to the collapse of the US economy?[/quote]

None are. That's the point. Stay out of debt, have an emergency fund, live within means, put some away for a rainy day. If there's something you want to buy or do that will enrich your life, so it now. Spend the money. There's no guarantee that you and/or your money will be there later. [/quote]

You're disillusioned enough to believe that the market (stocks or bonds) won't outperform your checking and savings accounts with their 0.1% interest rates? Or you're disillusioned enough to believe that the theory of compounding won't apply anymore?

I'm cringing just thinking about this -- and I'm an (older) millennial too.[/quote]

The more I see this, the more I think it's not actually a thought-out financial plan, but rather a [i]post hac[/i] rationalization for excessive consumer spending.  "I want that new Tesla, but the only way I can afford it, and my new condo, is to severely limit my savings.  Well, it's not like the stock market is going to do anything anyway . . . "[/quote]

THIS. I'm a millennial who is very much into investing (older one - in my 30s), and I feel like I hear this year after year. People always say -- oh I could invest it, but it's not like the market is doing well anyway, so let me just get the Benz or Tesla or vacation or whatever. And sometimes they are right that the market isn't doing well right that moment -- it's had a week or 2 of a slide or lateral movement. Yet they fail to look at it long term. I've heard coworkers say it this year -- that it's been a bad year and it isn't worth investing beyond the bare minimum; and yet the S&P is up 5%+ YTD despite the volatility, so there's a 5% return they missed out on.[/quote]

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