What is a 401k!? 🤔

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A 401K is a retirement account offered to employees. A percentage is cut out from your paycheck and added to your 401K. A lot of employers even match your contribution, meaning you’ll be getting free money! You will be taxed when withdrawing, and can only be withdrawn at 60 unless you’re willing to pay a fee.

Let me know your thoughts in the comments!

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#Shorts #finance #money #401k #retirment #job

[jaybartgis]

Also the employer: "we can fire or lay you off for literally no reason and take back all the money we contributed"

[MontgomerysMaddens]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[AnkurYo]

Stocks are rallying but I know better, macro shows the economy is yet to recover. I been holding stocks to sell at a profit at this time but it is looking like a bull market the rest of 2023. I am in a fight to hold or to sell. I’m up to 297 grand from a low of 250 thousand last year.

[velayuthman]

While your 401(k) account will likely continue to grow after you stop contributing to it, that growth will be limited by the market, your plan’s balance and other factors, so i can perceive the preference for Annuities, I still want to know how best to compound at least $2m in retirement savings other than holding cash

[Lightlinefisherman]

There’s different types of 401 k. Roth 401k u can contribute after tax dollars and withdraw that money in retirement without any taxes.

That being said when it comes to financial advice read into everyone’s pros and cons because not every shoe fits. Find the right strategy that fits your life currently. Make sure to continue to educate yourself as well!

[BackwardsHAT]

WHY DON’T THEY TEACH YOU THIS IN SCHOOLS!!?

[christianmcbain]

Now a days company’s rarely match you dollar for dollar. 😢

[jcat]

Don’t for get the 1%-2.5% fees for all sorts of management resources that take a third or more of your contributions away when you get your distribution and then your higher tax rate consequence that comes out also.

[HeyMavDak]

It ain't free money, you loaned it to them for like 30 years.

[Jack-hgz]

Thank you for explaining it. I was on the phone with a lady about it on adp and she was rude ASF.

[Msimportant]

Hardship withdrawal you don’t pay penalty of early withdrawal

[_davidturner]

My inheritance, a whooping 1m has grown only 4.72% in the past 12 months. In this bear environment does investing w/ a brokerge account under a custodian outperform a 401k? should I seek a pro to grow my funds on brokerage or still hold? I have 5 years to retirement. Happy to discuss.

[jessealtamirano]

Always check how much they match you it's usually not that much

[ivorysneck]

um n they only match the first 4-6% of your contributions
not the entire contribution

[Davies-Edward]

I did 2 years max contribution with a senior catch up into a 401k, then I did the Roth 401K with the catch up in the 3rd year. The match went into the 401K not the Roth. So basically I have a 75% 401k and 25% Roth 401k. I don't really see a way to invest the Roth 401K differently than the rest of my 401k, or to do a withdrawal from the 401k 1st? Am I missing something?

[Tribalism]

Workers need to stop being judgmental "we got another over here" yeah he was a big mouth spoiled kid.

[madgemackles]

Also the company benefits from it…they don’t pay taxes from the money they match you with

[govardannayaki]

Hi sir .. if I have 70k and I withdraw everything just to invest somewhere like buying stocks, how much tax and penalties am I paying ?

[ddrevm]

They told me they’ll do $0.50 to each $1.00 to up to 4 percent

[johnepickiller]

Just ask for a post tax 401k most companies offer that, and if they don't offer that don't work there