Anonymous
Post 01/27/2017 08:51     Subject: 401k and the Dow hitting 20
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:How do you contribute 50K a year to a 401K? How old are you?


How hard is that? My oen 401k contributions last yesr were 36k (full employer match) and my DH 25k, partial match. Total retirement contributions 61k.


Not everyone gets a match, not everyone gets such a generous match, and not every family is dual income.


Dude...your employer matches 100% of your 401k contributions? Where do you work?


Your employer does not need to match 100 % of your 401(k) to have 401(k) contributions of $38,000. For example, my employer gave a 401(k) match in 2016 that was 10 percent of my salary ($160,000), and so they matched $16,000. Then, with profit-sharing, it hit up against the IRS limit of approximately $53,000 and I had to pay tax on the amount that went over. I work at a publicly-traded company.

+1. I'm in law and DW is in consulting. Our total 401k contributions after matching and profit sharing contribution is $67200.
Anonymous
Post 01/26/2017 23:29     Subject: 401k and the Dow hitting 20
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:How do you contribute 50K a year to a 401K? How old are you?


How hard is that? My oen 401k contributions last yesr were 36k (full employer match) and my DH 25k, partial match. Total retirement contributions 61k.


Not everyone gets a match, not everyone gets such a generous match, and not every family is dual income.


Dude...your employer matches 100% of your 401k contributions? Where do you work?


Your employer does not need to match 100 % of your 401(k) to have 401(k) contributions of $38,000. For example, my employer gave a 401(k) match in 2016 that was 10 percent of my salary ($160,000), and so they matched $16,000. Then, with profit-sharing, it hit up against the IRS limit of approximately $53,000 and I had to pay tax on the amount that went over. I work at a publicly-traded company.
Anonymous
Post 01/26/2017 14:17     Subject: 401k and the Dow hitting 20
Anonymous wrote:
Anonymous wrote:I am very financially naive so please don't flame me for asking this question.
Hearing about the Dow hitting 20 makes me wonder about the following:
In 2007 DH and I had 400k in a 401k. We withdrew it all and used it to make a bad investment. We have not built it back up and yes we had to pay huge taxes on the early withdrawal.
My question is had we not done that and continued to contribute (about 50k per year) what would we have now and what would it be worth? I guess just a masochist for wanting to know as I regret this decision but there is nothing we can do about it now.
Just wondering if any financial people out there could make a calculation??


I don't even understand WHY? What was the pressing "investment" that required to use ALL your retirement money? Did you not view retirement $ as untouchable? Is it bc you wanted a McMansion?


WHY are you a presumptuous douchebag?
Anonymous
Post 01/26/2017 14:08     Subject: 401k and the Dow hitting 20
Who advised you to do this. Ugh.
Anonymous
Post 01/26/2017 12:50     Subject: 401k and the Dow hitting 20
Anonymous wrote:
Anonymous wrote:I am very financially naive so please don't flame me for asking this question.
Hearing about the Dow hitting 20 makes me wonder about the following:
In 2007 DH and I had 400k in a 401k. We withdrew it all and used it to make a bad investment. We have not built it back up and yes we had to pay huge taxes on the early withdrawal.
My question is had we not done that and continued to contribute (about 50k per year) what would we have now and what would it be worth? I guess just a masochist for wanting to know as I regret this decision but there is nothing we can do about it now.
Just wondering if any financial people out there could make a calculation??


I don't even understand WHY? What was the pressing "investment" that required to use ALL your retirement money? Did you not view retirement $ as untouchable? Is it bc you wanted a McMansion?


It doesn't matter if OP was investing in hookers and blow. That money is gone, and OP realizes it was a dumb mistake.
Anonymous
Post 01/26/2017 12:44     Subject: 401k and the Dow hitting 20
Anonymous wrote:I am very financially naive so please don't flame me for asking this question.
Hearing about the Dow hitting 20 makes me wonder about the following:
In 2007 DH and I had 400k in a 401k. We withdrew it all and used it to make a bad investment. We have not built it back up and yes we had to pay huge taxes on the early withdrawal.
My question is had we not done that and continued to contribute (about 50k per year) what would we have now and what would it be worth? I guess just a masochist for wanting to know as I regret this decision but there is nothing we can do about it now.
Just wondering if any financial people out there could make a calculation??


I don't even understand WHY? What was the pressing "investment" that required to use ALL your retirement money? Did you not view retirement $ as untouchable? Is it bc you wanted a McMansion?
Anonymous
Post 01/26/2017 10:17     Subject: 401k and the Dow hitting 20
Anonymous wrote:I am very financially naive so please don't flame me for asking this question.
Hearing about the Dow hitting 20 makes me wonder about the following:
In 2007 DH and I had 400k in a 401k. We withdrew it all and used it to make a bad investment. We have not built it back up and yes we had to pay huge taxes on the early withdrawal.
My question is had we not done that and continued to contribute (about 50k per year) what would we have now and what would it be worth? I guess just a masochist for wanting to know as I regret this decision but there is nothing we can do about it now.
Just wondering if any financial people out there could make a calculation??


If you had left it in and were invested as 90:10 (stocks:bonds) along with a $50k yearly contribution, my estimate would be between close to ~$1M and that's probably on the low-side.

If that had been your balance in March 2009, it'd be closer to $1.5M-$2M because the market tripled between then and now.
Anonymous
Post 01/26/2017 09:54     Subject: 401k and the Dow hitting 20


don't torture yourself. you can't go backward. Onward and upward.
Anonymous
Post 01/26/2017 09:31     Subject: 401k and the Dow hitting 20
But you have still put in $50k/year since 2007. You should still have a hefty chunk of change in your accounts.
Anonymous
Post 01/26/2017 09:01     Subject: 401k and the Dow hitting 20
Anonymous wrote:OP here. I found an online calculator that assumes 6% and it said about 1.8. Wow.


You two made a very bad mistake. Hope you were able to rebuild since then. I am guessing you jumped into the housing market in 07 and lost money there. Lesson learned, I suppose.
Anonymous
Post 01/26/2017 08:57     Subject: 401k and the Dow hitting 20
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:How do you contribute 50K a year to a 401K? How old are you?


How hard is that? My oen 401k contributions last yesr were 36k (full employer match) and my DH 25k, partial match. Total retirement contributions 61k.


Not everyone gets a match, not everyone gets such a generous match, and not every family is dual income.


Dude...your employer matches 100% of your 401k contributions? Where do you work?
Anonymous
Post 01/26/2017 08:56     Subject: 401k and the Dow hitting 20
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:How do you contribute 50K a year to a 401K? How old are you?


How hard is that? My oen 401k contributions last yesr were 36k (full employer match) and my DH 25k, partial match. Total retirement contributions 61k.


Not everyone gets a match, not everyone gets such a generous match, and not every family is dual income.


Well, OP was able to.
Anonymous
Post 01/26/2017 08:55     Subject: Re:401k and the Dow hitting 20
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Close to a million.


No, a lot more... assuming 50k/year contribution plus avg return rate of 7% (typical for index funds).


You can't assume a $50k/yr contribution to a 401k.


See post above you - 7:59
Anonymous
Post 01/26/2017 08:48     Subject: 401k and the Dow hitting 20
Anonymous wrote:
Anonymous wrote:How do you contribute 50K a year to a 401K? How old are you?


How hard is that? My oen 401k contributions last yesr were 36k (full employer match) and my DH 25k, partial match. Total retirement contributions 61k.


Not everyone gets a match, not everyone gets such a generous match, and not every family is dual income.
Anonymous
Post 01/26/2017 08:42     Subject: 401k and the Dow hitting 20
Anonymous wrote:How do you contribute 50K a year to a 401K? How old are you?

We contribute the $36k match, and even with partial employer match it adds up to $48k total. If your employer is more generous then it's not difficult.