Doubled my 401K contributions

Went to a work Meeting last Friday and they brought in the 401K guy to comfort everyone about the down market. 29% drop?

I was the doofus who raised my hand and said I planned to increase my paycheck deductions because the market is on sale.

DH makes enough it won’t matter. I went from 10K/year to 20K. Sale!!

I’m also doing Roth so it’s a real paycheck hit. We’re in the 24% bracket so why Roth? We need Roth to retire early and keep income low for insurance. Or if taxes go up. And we’ll probably be in that bracket post retirement so…balance I guess. Everyone just ignore the crazy lady in the back.

It’s always struck me how the best thing to do in any market is the direct opposite of what your emotions want you to do. When it’s crashing you stay when your emotions scream run.

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If you’re such a financial optimizer, why weren’t you 401K contributions maximized to begin with?

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“If you’re such a financial optimizer, why weren’t you 401K contributions maximized to begin with?”

My company started 401K about 1985 or 1986 I think when it killed their pension plan.

I’d been working since 1968 - and retired in 1999…so many of ‘us’ didn’t have the option to save for 30-40-50 years in a tax deferred account. In the 1970s, when IRAs started, you could only put bank CDs and I think about $1000 or $2000 away.

Many boomers didn’t have the option of years and years of tax deferred investments.

I did max out my 401k but as a ‘highly compensated’ employee, maxed out before the 10% limit because the otheremployees were saving less and thus had to be limited by the company for ‘highly compensated’ folks.

t.

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Dropped them to half for a few years to pay for my twins college education.

Thank you for your concern.

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This is so on point… of course, much easier for those at least 10 years from retirement, especially double-incomers. Take advantage of the 30% off sale.

It’s always struck me how the best thing to do in any market is the direct opposite of what your emotions want you to do. When it’s crashing you stay when your emotions scream run.

It’s always struck me how the best thing to do in any market is the direct opposite of what your emotions want you to do. When it’s crashing you stay when your emotions scream run.

Indeed. Panicing to sell when the market is down tends lead to buy high, sell low rather than the opposite.

Best to sell early if you plan to sell. Waiting risks selling at the bottom. Often its best to go on vacation and wait for recovery.

Often its best to go on vacation and wait for recovery.

Seems that the current market sentiment could lead to a very long vacation…
'38Packard

Went to a work Meeting last Friday and they brought in the 401K guy to comfort everyone about the down market. 29% drop?
I was the doofus who raised my hand and said I planned to increase my paycheck deductions because the market is on sale.

For some of us to get gains greater than the overall market, others must be getting less. Things that can be positive factors are not just smarts or luck, but also patience and (for lack of a better word) stomach. Patience for a solid plan to pay off even when it isn’t doing so in the short run isn’t as common as one might imagine. Also, “stomach” to not sell after the huge loss has worked for some of us but many people who imagine they will have it turn out not to when the drop is in real time and not just reading about a large drop in the past.

Since you can’t plan on luck occuring, you gotta work with what you got.

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Dropped them to half for a few years to pay for my twins college education.

Congrats on that milestone!

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You’re not a doofus. You’re the Fool!

Fuskie
Who hopes others at your employer took note and listened…


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