401 k

[SinkingFast]

Maybe not, but I sure lost a hunk with my broker investing my funds aggressively like SinkingFast said in her post in the late '90's. Then dot.coms and tech stocks crashed and I was too heavy in those areas...

Been there done that too, BG. Late 1980's we lost our butts. Stocks tanked then too.

Hubby changed jobs and we cashed out because we needed money for the move. Boy did we loose big time on that one.

[bobby125]

I am kind of interested to know how $25k turned into $100k over the past 5 years as well.....

I have fidelity, which funds? 400% return is something, I would like to know so I can do what you did

[bobby125]

adding....

your avergae investor is not going to turn $25k into $100k in 5 years, probably .001% do

so $25k is not going to break retirement, and yes $25k in 25 years might be $100,000 but that arguement can be applied to anyone in bk and 401k. If anything, it hurts the younger person more because they have more time for it to grow.

from your post, I can tell you must be old, because us youngin's dont know jack

[Bobby'sGirl]

Impossible dream today, maybe...

But my stocks soared and I had 10 incredible years of growth in the late great bull markets of the 90's. One lovely stock (US Robotics) was bought at $10/share and my broker sold it 18 months later at $60/share and bought some others that did almost as well. Now with the techs tanked for a while, I don't know if you can even find US Robotics anywhere except penny stocks......thanks to med expenses a few years back, had to live off my investments for a while and have none now. But they made it possible for this widow to support her family on social security benefits and part time teaching for many years.

[Bobby'sGirl]

Down, Bobby...

"from your post, I can tell you must be old, because us youngin's dont know jack"

Read a few of Jenny's posts, and see that SinkingFast was reacting to her constant negativeness to almost every idea on the threads. Why don't you find an investment calculator in one of the financial areas on aol or msn, etc, and see how fast this could all add up. Remember, each year more is added to the pile that already has grown with that amount of interest reinvested, and it grows to far more than a simple $5000/year x .05% interest. The result will not be spectacular at the lowest rates seen in conservative funds today, but there have been funds growing at closer to 15% and at 30% when I had my money invested.

Come back and make more posts when you've seen what is or is not possible, and don't post rashly without checking some facts.

[bobby125]

you know, I shouldnt have posted about this above and now, I just want to say I understand where everyone is coming from, I was just adding my thought that while not being allowed to contribute to a 401k for 5 years of BK does indeed suck, I dont believe that given reasonable expectations of investment returns, that would not mean the difference between being able to retire or not retire in 7 years. I still believe that. Now if you want to say that if you put $5,000 in each year for 5 years and 2 years later that is going to be a $100,000, than fine, yes it is possible, but even then, an extra $100,000 still to me would not be the final say in being able to retire or not retire at that point. Is that $100,000 going to allow for retirement because she can live off it for 30 years?

I dont want to argue, and I do not want to be confrontational ir judgemental.

I love this site because I needed help in answering questions and I enjoy sharing information.

I believe that I saw this post and the reference to not being able to retire because of no 401k and my first thought was A. I cant see that being the difference between retirement and not and B. This is not what you should be worrying about at this moment. You need to focus on what your options are, what your payment could be, if you should do it, not no 401k would mean no retiring.

Once again, I am not here to cause trouble. Thanks to everyone for always sharing ideas.

[bobby125]

bobbys girl, I made my post while you were making yours.....

apology accepted?

I didnt realize jenny and sinking fast had a history...

[bobby125]

i do have to say this though....

yes, high returns are indeed possible, but to say that the next 5 years will not allow her to retire in 7 years in silly......


***Lets say she makes $6,000 a month and she puts in 3% and they match 3% and it grows 15% a year, in 5 years that would be $52,966****

**Lets say same example at 30% returns that is $76,000*****

How can that be "she wont be able to retire"


She wont be able to retire if she is not allowed to contribute 3% to her 401k over the next 5 years?

Tell me what I am not seeing? If she has a 401k already, she can still invest that money?

She is saying if not over next 5 years then I cant retire in 7 years?

How is that statement possible? Do you see the irrationality?

Is there anyone here that could tell me in good faith, that being allowed to contribute to a 401k over the next 5 years, will not allow them to retire in 7 years? Or what, work another year?

It is just way overboard on the statement, now I am back to not caring because people are being disrespectful like I dont understand 401k's etc. I am not going to feed into this posters beliefs and the insanity of the statement.

I am saying no it is not true and why is this what you are thinking of first, take a step back and realize that if she cannot retire in 7 years, it will not be because of the next 5 years 401k it will or will not be due to the fact of her current retirement savings

[Bobby'sGirl]

Hey, no prob!

And don't give up on doing some retirement planning of your own. If at age 35, you put $5000 into a retirement fund every year until age 60, even at an average growth of 10% per year, that would be $588,249. So look ahead! There may be stinker markets in there for a few years, and some fab bull markets again to grow it even more!

The original poster was perhaps, as you think, looking at one little worry and not the whole picture. And maybe responding to a gripe his/her Mom made when worrying through this with Joey.

[Jenny]

We put 5%/yr into Hubby's 401K. Hubby's company also contributed a matching $1/$1 up to 2%. So that was 7%/year. We're talking less than $5K/yr saved.

That means in 5 years, you've invested $25,000.

In 5 years time, the small investments of Hubby and the company grew to in excess of $100K.

It certainly seems like you turned $25,000 into $100,000 in 5 years.

What am I misunderstanding here?

[bkbiker]

[SinkingFast]

I am kind of interested to know how $25k turned into $100k over the past 5 years as well.....

I have fidelity, which funds? 400% return is something, I would like to know so I can do what you did

It was 1992-1997 or maybe 1993-1998. Somewhere in there.

And, yes, if you consider 50 to be old, then we're old.

I don't remember the name of the fund. The deal Hubby's company set up had 5 alternates to invest among. We were "older" at the time. Looking for big ROI. So we went very aggressive. The fund we chose was all stocks and futures with a track record of huge returns. But that same fund had also suffered big losses when the markets went sour. The market cooperated and 5 years later when Hubby's company sold, that 401K acct was in excess of $100K. Timing IS everything.

You and Jenny are the kind of people that,........... If it hasn't happened to you or someone else you know personally, it cannot happen.

I'm done with this CRAP.

[bobby125]

so you can tell me with a straight face that if this person is not allowed to contribute to a 401k over the next five years that that will break her retirement in 7 years?

5 years? make or break a retirment in 7 years?

$72,000 a year, 3% in 401k and 3% match

50% RETURN EACH YEAR, 50% RETURN EACH YEAR

That is $145,000 in 7 years.

That is what is going to make or break retirement? 5 years of contributions at a 50% return to net $145,000

Is that reasonable to you?

So is it the 5 years of 401k or the relying on the 50% return that is going to make or break the retirement?

And I know it could happen, right? 50%?

I AGREE IT COULD HAPPEN AND IF IT DOES AND THERE IS A CURRENT 401K BALANCE THEN THAT WOULD ALLOW HER TO RETIRE ANYWAYS

IT HAS NOTHING TO DO WITH THE NEXT 5 YEARS OF CONTRIBUTING

NO REASONABLE PERSON COULD SAY RETIREMENT THAT IS 7 YEARS AWAY WOULD BE MADE OR BROKEN OVER THE NEXT 5 YEARS OF CONTRIBUTING.

IT COULD BE MADE OR BROKEN BY THE ROI OVER THE NEXT 5 YEARS BUT NOT IN THE ACTUAL CONTRIBUTIONS OVER THE NEXT 5 YEARS

IF THAT IS THE CASE, THEN YOU ARE BASICALLY SAYING, YES IT COULD, THEY COULD GET 50% RETURNS BECAUSE IT HAS HAPPENNED AND THAT MEANS $145,000. WELL, IF THAT IS ALL THEY HAVE, THEN I DONT THINK THEY WOULD BE RETIRING ON THAT


I AM NOT A NEGATIVE POSTER, CHECK MY POSTS, I AM POSITIVE AND SUPPORT MOSTLY EVERYTHING, BUT WHEN I HEAR PEOPLE SAY THE NEXT 5 YEARS WILL RUIN MY RETIREMENT IN 7 YEARS, I HAVE TO SAY NOT TRUE AND LOOK AT THE FACTS, YOU MAY JUST BE THINKING THAT BUT THAT IS NOT THE CASE.

HOW COULD YOU SAY OTHERWISE?

REALLY, HOW?

[bobby125]

You and Jenny are the kind of people that,........... If it hasn't happened to you or someone else you know personally, it cannot happen.

I'm done with this CRAP.

Once again, I never said it could not happen.

The poster said not contributing to a 401k over the next 5 years would not allow her mom to retire in 7 years.

I said that is not true.

I will give you 50% return over next 7 years and at 6% of $72,000 that is $145,000.

Is that enough to retire on?

Is it reasonable to assume 50%? Is that what would not allow her to retire? needing 50-200% returns in 5 years?

It would not be the next 5 years of contributing

I believe you have looped me together with Jenny, whom I now realize you have some sort of history with

I have tried to be the bigger person by offering an apology and explaining that I may have miscommunicated in earlier posts, but you have attacked me and suggested I should "know what I am talking about" before posting. I believe in this instance that I am correct and that the next 5 years of contributing to a 401k is not what the real problem is. It is either that the person does not undertsand the overall impact of contributions to the 401k over the next 5 years and how that will affect the bigger number, rather it is the current balance of the 401k and the ROI that will make or break the retirement and that if there is not enough there, then the next 5 years will not make or break it anyways

I respect your opinion and I hope you respect mine. I did not mean to disrespect your opinion and as I said in an earlier post, I may have been off base in some of my posts, but I truly feel this person (if they even really care) needs to undertand the facts and that they should not rule out bankruptcy due to the fact that they need the next 5 years of 401k contributions to retire, which is not the case, nevermind taking into consideration the amount of money they may be saving with BK

[SinkingFast]

Like you said earlier in this thread. You are young.

You do not deal with the elderly and their issues.

Were you helping an elderly person decide which Medicare Plan D to sign on with last November/December??

Do you watch an elderly person with multiple chronic illnesses taking 20+ pills/day just to live??

Do you see an elderly person write out one check for a Medigap insurance plan that costs $300/mo out of pocket, knowing that Medicare and Medicare Plan D are taking another $100/mo out of their SSI??

Do you have to shop for the special diets, yes that's DIETS, of an elderly person. High Blood Pressure and Kidney Failure.

Do you take an elderly person to multiple doctors every month??

Do you watch an elderly person that has no monthly expenses to live (rent, utilities, phone, etc.) because they had to surrender their own home to live with Adult Children spend their remaining savings to pay all their medical bills?? While that elderly person HOPES they have enough money left to bury themselves when they die??

So you tell me,............ Can an extra $100K in retirement funds make a difference??

I know first hand it can.

An extra $100K, and my Mom would still be in her own home. Where she wanted to stay. Living on her own, like she wanted to live. Not loosing her dignity to depend on her daughter for the rest of her years.

Maybe next time you see your Grandparents, if they are still alive, you'll think about the cost of getting old.

Maybe when you look at your own parents, if they are still alive, you'll think about how much it's gonna cost them when their health begins to fail.

Maybe you should ask your parents or your Grandparents what their financial situation is?? You just see them smiling, happy to see you. If you have kids, maybe slipping your kids a dollar here and there from Grandma and Grandpa. Do you know how they really live?? Behind the smiles and the dollars for the grandkids??