How the hell are we supposed to retire?

rick81721 said:
Blew it - heard about it too late. Should've gotten in the first day this was announced. :(
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Haha, I missed it too. But I made a nice chunk of change on #PHUN yesterday (which was somehow a sympathy move with $DWAC). Got in at $8.28, sold somewhere in the $19s seconds before it halted down. I can't believe there are people that bought $DWAC in the $170s, I'd be surprised if it ever gets anywhere close to that again.
 
rlb said:
I keep getting whacked on my 401k with the shit market. After sitting out 1+years with all of my money in a "stable value fund" I decided to re-distribute and try to gain some ground (this was ~last fall). Then I got whacked (again) in the beginning of 2016. There's gotta be a better way than 401k or market (IRA etc.) bullshit.....what am I missing?
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Maybe sell cocaine.
 

Contribution limit increases for 2022​

401k: $20,500 (+1k)

401k catch-up (age 50+): $6,500 (no change)

401k total contribution limit: $61,000 (+3k)

IRAs: $6,000 (no change)

HSAs: $3,650 (+50)
 
Santapez said:
401K increases but not IRA blow my mind as it's so tied to the employer.

Bad for lower paid, small business or gig workers.
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It’s not detrimental to their lifestyle, but sucks some don’t have the opportunity. Isn’t there some stat like 50% of people don’t even max out the employer 401k match or something? A lot of people have the opportunity and don’t even take it.
 
Blair said:
It’s not detrimental to their lifestyle, but sucks some don’t have the opportunity. Isn’t there some stat like 50% of people don’t even max out the employer 401k match or something? A lot of people have the opportunity and don’t even take it.
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Yeah, but at least it's there. That match is something that is available to people who make more money and work at large companies as opposed to people working for small companies, gig jobs etc.

And even if not caring about the match, $20,500 is way higher than $6,000 which hasn't changed in years. Before my company got a 401k I always maxed out my IRA but I'd have way more for retirement if I had a 401k at that time.

Only upside to an IRA is being able to choose a low-cost brokerage if you don't have one for the 401k.
 
There are other avenues for self-employed. SEP and SIMPLE have much higher limits.

401Ks are great - even tho they are stacked to benefit the high earners of a company.
say the company gives a bonus of 100% of the first 5% of salary. we all agree this is good.
the 401k limit is about $20,000 - if someone makes $400,000/yr, they get 100% match of their contribution 5%,
while the person make $50,000, gets $2,500. just the way it is stacked.

in a nutshell, the IRA is just a deferred income plan with a penalty to keep the money in.
There is no real gain, unless you really are in a lower tax bracket when retired, cause capital gains is 15%,
vs earned income.
 
Patrick said:
There are other avenues for self-employed. SEP and SIMPLE have much higher limits.

401Ks are great - even tho they are stacked to benefit the high earners of a company.
say the company gives a bonus of 100% of the first 5% of salary. we all agree this is good.
the 401k limit is about $20,000 - if someone makes $400,000/yr, they get 100% match of their contribution 5%,
while the person make $50,000, gets $2,500. just the way it is stacked.
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How is that "stacked"? Both employees in your example get the same 100% match of their 5% of salary. What about the higher earner that makes 800K? Now their match is only 50% of their 5%.
 
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