The most prestigious law school admissions discussion board in the world.
|
 |
 
|
Is this guy correct that maxing out your 401k is overrated advice?
Poast new message in this thread
Date: June 10th, 2025 9:26 PM Author: Passionate Dingle Berry https://x.com/dollarsanddata/status/1932502224795525164?s=46
https://ofdollarsanddata.com/should-i-max-out-my-401k/ |
 |
Date: June 10th, 2025 9:42 PM Author: big chartreuse indian lodge why are you spamming 85iq twitter clickbait shit you retarded Jewish pedophile? Get the fuck off the internet. If people here wanted to read low iq yahoo tier clickbait shit then they would be on yahoo. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003713) |
|
Date: June 10th, 2025 10:31 PM Author: Passionate Dingle Berry because it’s xo catnip (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003862) |
|
Date: June 10th, 2025 10:34 PM Author: big chartreuse indian lodge no it isn’t you retard. Everyone here hates you and no one clicks your stupid twitter links. You literally hate Elon musk yet you devote your entire life to giving him money. You are mentally retarded. Also you’re a pedophile. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003869) |
Date: June 10th, 2025 9:27 PM Author: vengeful rose stock car just let us handle your money goy (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003666) |
|
Date: June 10th, 2025 9:40 PM Author: bossy circlehead Absolutely brain dead advice. The biggest advantage of a 401k is that it takes income out of your highest marginal tax bracket during the highest earning years, and lets you shift it to a much lower tax bracket in retirement when you are earning less. So of course he runs the comparison using a Roth 401k, which doesn't have this income-shifting effect. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003705) |
|
Date: June 10th, 2025 9:41 PM Author: talented sepia step-uncle's house party of the first part also many employers match up to a certain % so it's free money (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003708) |
|
Date: June 11th, 2025 7:39 PM Author: painfully honest french chef (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49006676) |
|
Date: June 12th, 2025 12:39 PM Author: yapping ticket booth antidepressant drug (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49008487) |
|
Date: June 10th, 2025 9:42 PM Author: Insecure Exciting Old Irish Cottage Boistinker 23k may not bump you down though (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003717) |
|
Date: June 10th, 2025 9:48 PM Author: bossy circlehead uhh you don't understand how marginal tax brackets work little brej. it doesn't matter if it "bumps you down."
if you are being taxed in the 30s right now and defer some of that income and can take it out at 12%, and have it grow tax free that whole time, it's a huge advantage. |
|
Date: June 11th, 2025 10:07 AM Author: Jet Hominid Bbw Think about what you just said. 12% only applies to very little income. So the goal of a 401(k) is to save a ton of money that you can't touch until you are very old and even then you will only use tiny bits of it each year until you die.
The remainder will then be transferred to your beneficiaries who will have to take RMDs during their prime earning years and pay tax at their marginal rate. |
|
Date: June 12th, 2025 12:08 AM Author: bossy circlehead (tax planning masterman)
What if you ... live off the 401k distributions and instead don't sell the assets that get a step up in basis at death? how much more than 130k-ish per year (12% tax bracket + standard deduction for a married couple) do you need in retirement? |
|
Date: June 10th, 2025 9:54 PM Author: big chartreuse indian lodge (Progressive tax system masterman) (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003762) |
|
Date: June 10th, 2025 10:58 PM Author: Thriller patrolman This is really dumb, dummy (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003939) |
|
Date: June 11th, 2025 10:03 AM Author: hyperactive twisted parlour gaping This is what I used to believe. I'm widely considered the dumbest guy on XO, and that's what I USED to believe. Think about that. |
|
Date: June 12th, 2025 12:40 PM Author: yapping ticket booth antidepressant drug (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49008492) |
|
Date: June 10th, 2025 9:50 PM Author: Deranged buff famous landscape painting black woman It also assumes that the contributions will remain in a 401k until retirement (subject to fees and limited investment options). How realistic is that? Most people job hop, in which case old 401ks can be put in an IRA with whatever custodian you want.
His analysis also assumes a very low amount of annual taxable income on the portfolio (buy and hold for 30 years with a very low dividend rate), so reinvesting on a pre- versus post-tax basis doesn't have much of an effect. But again, if you roll into an IRA you can trade like crazy. |
|
Date: June 10th, 2025 11:06 PM Author: Provocative tan messiness university he "assumes" (LJL) same tax rate
although it is a fair point that tax rates will be higher in the future |
|
Date: June 12th, 2025 12:10 AM Author: bossy circlehead maybe, but not enough higher that someone with 100k (inflation adjusted) income in the future is taxed at higher rates than someone with $300k income right now (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49007420) |
|
Date: June 12th, 2025 12:18 PM Author: cerise school queen of the night TITCR. Any non-poormo should be contributing enough to a traditional retirement account (IRA or 401k) to generate at least $125k annually in retirement income. (Currently any income below $125k is taxed at 12% or lower for a married couple. That amount will increase in the future with inflation.) If you follow the 4% rule, that means you should try to have $3M saved in your traditional retirement accounts when you reach retirement age (which very few people are going to reach even if they wanted to). If you are in the 32% tax bracket or higher, then you will almost certainly be better off contributing as much as possible to a traditional 401k. The only possible exception is if you own real estate or some other passive income source that will keep you in a high tax bracket even after retirement. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49008411) |
|
Date: June 10th, 2025 9:49 PM Author: frozen corner Yeah if you worry about this shit obviously you're an idiot faggot and a slave. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003740) |
|
Date: June 10th, 2025 10:47 PM Author: drunken beady-eyed place of business There are many new age financial influencers that peddle this nonsense. If the avg American just did these two things: - buy a home early in their life with a 30 year fixed rate mortgage - contribute to a 401k starting from their first job out of college
they would be in great shape for retirement. Many people don't even do these two basic things.
We like to complain about elites and jews or whatever. But the 30 year fixed rate mortgage is a fantastic thing not available to most of the people in this world. 401k are also a great instrument. Just use them. |
|
Date: June 10th, 2025 10:50 PM Author: Brindle Cracking Theater Doctorate (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49003910) |
|
Date: June 11th, 2025 9:34 AM Author: coral stubborn box office good post both recommendations force people to live below their means while ensuring security for the future |
|
Date: June 11th, 2025 9:56 AM Author: Vermilion friendly grandma The house in early 30s part of that process became unattainable for 70+% of people under 35 over the last 10 years after a full 8 years of ZIRP under Obama, and the number of people who can afford to buy a house shrinks even more if you’re talking about a SFH (as opposed to whatever MFH that doesn’t appreciate as reliably) in a decent school district that doesn’t require 8+ hours a week of commuting. Maxing 401k is also less critical than just getting all the matching funds available to you, but turning down matching funds is very stupid. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49004804) |
|
Date: June 11th, 2025 3:53 PM Author: coral stubborn box office "force people to live below their means" it is easily attainable for 70+% of people under 35, but they would need to sacrifice if you aren't willing to sacrifice your time to commute, your money for a good school district, or just relocating to a lower col place, or having a below average home by today's standards, then your failure to have a home is on you |
|
Date: June 11th, 2025 6:33 PM Author: Vermilion friendly grandma It’s also objectively reasonable to be skeptical that the housing supply constraints and interest rates will never be as optimized as they were during the Greenspan through COVID period, so the upside is far more limited. The rent v buy calculus factoring in all the tax benefits etc. of homeownership tilts much more toward rent these days, ie it is much more financially wise to rent a $1500 2-1 than to sink $2500+ into a mortgage payment every month even if you technically could come out ahead relatively to pure savings on the forced savings aspect of the slowly accruing equity. TVMwise it’s far more likely that the $1000+ a month saved will make you far richer if it’s just plowed into an index fund. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49006508) |
|
Date: June 11th, 2025 11:42 PM Author: coral stubborn box office sure, but renters have easy ways to fuck up this plan whereas home buyers do not. oh, yes, let's take a trip to europe. let's buy a more expensive car, we'll make it up later for the ira, etc. also, homes have a natural defense against inflation and population growth. and if they end up being assets that don't keep up with the market, you still have a place that is your own where you cannot be evicted. that is worth a lot. |
|
Date: June 12th, 2025 7:29 AM Author: contagious gaming laptop stain It’s not unattainable. It’s unattainable in the Tri-State Area. Millennials are way too fond of living in cities. I have a House rn and I make 0k ffs. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49007740) |
|
Date: June 12th, 2025 6:06 AM Author: vivacious aggressive public bath mexican nick rochefort says anything more than a 15 year mortgage is poison. 10 optimal scenario.
get it out of the way before the "life events" happen |
|
Date: June 12th, 2025 12:37 PM Author: coral stubborn box office yes, 30 year has higher interest rate, but the difference in payment can be pretty big. i think better to have 30 year for the advantage of lower payment. the money 'saved' can help build nest egg, be spent on credit card debt, and if there aren't any better places to spend it, it can always be added to the mortgage payment life events will occur during the first 15 years of home ownership for youngs. always. |
|
Date: June 11th, 2025 9:57 AM Author: Excitant indirect expression trust fund Shitmods don't want you to see this video of a woman violating the UCMJ
https://x.com/BowesChay/status/1932787406912008251?t=3t7r0ByKcVIel3iTQ5uU9A&s=19 |
|
Date: June 11th, 2025 10:10 AM Author: White haunting milk police squad How poor are these idiots on instagram that they can’t max out their fuckin 401k to have an extra million when they retire and also invest in extra money on the side? (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49004847) |
|
Date: June 11th, 2025 3:56 PM Author: Thriller patrolman Dave Ramsey and a 401k work improve the financial health of 95% of Americans. And 99.9% of all "financial influencers" (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49006134) |
|
Date: June 11th, 2025 5:01 PM Author: Cerebral location pervert As a business owner, I have no employer to give me a match, and I have investment opportunities available offering for higher returns than the S&P. I have some money in a retirement account but not a ton. But my situation isn't typical. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49006294) |
|
Date: June 11th, 2025 6:01 PM Author: coral stubborn box office what are these investment opportunities? people can choose riskier options for their 401k than s&p |
|
Date: June 11th, 2025 7:27 PM Author: Cerebral location pervert Expanding my business. Hiring more employees, opening offices in new areas, offering new services. A lot of it is just having a lot of cash sitting in a bank account to jump on opportunities as they appear.
I have a side business of a very specialized type of real estate investing, and that's been good too. |
|
Date: June 11th, 2025 11:55 PM Author: coral stubborn box office investments are passive, what you are describing is anything but passive fuck it, buy a taco truck |
|
Date: June 12th, 2025 6:02 AM Author: Cerebral location pervert Fair enough, but whatever you call it, it's growing a whole lot faster than the 11% a year that I might get from the S&P. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49007678) |
|
Date: June 12th, 2025 11:07 AM Author: coral stubborn box office then you should be taxed a lot more. pay your fair share. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49008222) |
|
Date: June 12th, 2025 12:07 PM Author: cerise school queen of the night If you are a business owner, you should create a 401k for yourself. Yes, you have to pay yourself the employer match, so it is no longer free money. But you can pay yourself far more than a regular employer would. It means your 401k limit is effectively $60k or $70k (I forget the exact number, but it is a lot). (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49008391) |
|
Date: June 15th, 2025 4:29 PM Author: Cerebral location pervert You could put in a million dollars, but your returns are still capped in the low teens if you're confined to public markets. I've maybe doubled my business's cash on hand over the last couple of years, just by a healthy amount sitting around to spend on the business as necessary. Aside from other more specific projects. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49018132) |
|
Date: June 11th, 2025 6:24 PM Author: Vibrant iridescent jap locus The MEGA BACKDOOR is the greatest thing I've ever done. Wait what's 401k |
|
Date: June 11th, 2025 7:32 PM Author: doobsian hideous boiling water heaven I pay my employees who take advantage of our employer match less than I would if they stopped contributing to their 401k. I assume all employers do this if they think about it. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49006662) |
|
Date: June 11th, 2025 11:51 PM Author: Excitant indirect expression trust fund If you have to ask (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49007375) |
|
Date: June 12th, 2025 6:17 AM Author: Titillating Kitchen Turdskin (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49007682) |
|
Date: June 12th, 2025 12:01 AM Author: spruce flatulent area if you read his article closely it's pretty clear he's not in a high income tax bracket... that means his advice is not very relevant to people on this board. (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49007393) |
|
Date: June 12th, 2025 12:01 AM Author: frozen corner that guy is a gay nigger idiot! (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49007394) |
|
Date: June 12th, 2025 12:11 AM Author: crusty navy center sex offender my 401k investment options are garbage, so yes
i'm a poormo, but i think i have 800k invested post tax and 400k invested in 401ks |
|
Date: June 15th, 2025 4:24 PM Author: White haunting milk police squad This. I’m poor and have about $6 million post tax and $4 million pre tax. I’m deadly poor (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49018115) |
|
Date: June 15th, 2025 6:52 PM Author: drunken beady-eyed place of business (http://www.autoadmit.com/thread.php?thread_id=5735906&forum_id=2...id.#49018425) |