What is a 401k? | by Wall Street Survivor

What is a 401k?

A 401k is a workplace savings plan that allows you to build wealth by investing a portion of your pay check in assets such as stocks, mutual funds, or real estate investment trusts (REITs). It is also the primary way employers help their employees prepare for retirement, and has the added benefit of allowing an employee to invest part of their salary before taxes are taken out.

While all 401k plans offer tax breaks to retirement savers, many other features of these retirement accounts differ, sometimes significantly, by employer. 401k plans are an effective way to shelter money from taxes because your contributions are deducted from your taxable income. So if you made $50,000 last year and invested $10,000 in your 401k, you’d only have to pay taxes on the remaining $40,000. This can be a great tactic, especially for people who live well within their means and can afford to save a big chunk of their salary.

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[caseybills]

It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

[JasonAmir-qouo]

Great video. Is it safe to retire just with a 401k?

[nikkinikkinikki]

I’m only 19 and just EXISTING seems so expensive. Wtf? I’m not ready 😭

[JacobWalker-jxnf]

While your 401k and IRA account would likely continue to grow even after you stop contributing to it, that growth might be limited by the Market, your personal plans and also other factors. For this I see need for annuities. I still will like to know how to compound $2m and above in retirement without holding cash.

[bobbobby]

Youtube teaching us the skills school does't

[HugoBergmann-lund]

Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?

[walexia]

I dig a hole in my back yard and bury a little each month

[c.t.u.o]

Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.

[thesoadjunky]

How many people are JUST learning about it after getting the job...XD

[jerome]

401k is free money! Anyone saying is a scam has no idea about investing.
Sure you can save your own money, but your money is not doing anything but losing worth because of inflation.

401k is taking a small % of your paycheck and saving it for you, at the same time they are matching half of it!

Then you can use that money as tax deductible on your yearly taxes.

The money is yours to keep, what you save and what your company gave you, regardless of you quit or get fire.

That 401k will be invested and you get part of the profit, which can potentially be another 5%. In 10-20 years if you put $5, 000 a year thats + $2500 from the matching plus potentially 5% of $7500 = $375 = $7875 x 20 years = $157, 500 instead of $5000 x 20= $100, 000
Thats not counting the compound effect of the 5% which each year will be higher because each year the amount increases.

[mohican-jxfx]

Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $800K in the stock market, experiencing fluctuations without substantial gains.

[jwilson]

Find a 401k video and go straight to tge comment section. I am now ready for life

[hiworldiexist]

My confused ass is just sitting here trying to figure out what I’m doing with my life. Lol but also rip

[godetroit]

I like the name of the insurance company.

[dannyg]

Samantha doesnt know that if the market takes a dive when she retires that will most of her 401k will be lost. Samantha needs to talk to a financial consultant to help her understand that 401k is NOT the best option for investing money.

[jaybartgis]

401k's seem pretty pointless. If i withdraw early I'm taxed. If i withdraw after 60 I'm taxed. If my company feels like not honoring the 401k agreement, they can just fire me and i lose half my money.

[marcusjesus]

Great video, I retired years ago and then decided to diverse some of my funds to the foreign exchange market and stocks. trading come with a lot of benefits And I have just bought my third house through it. As a beginner I was scared of losing my savings but l'm glad I took the bold step that is now favoring me.
Edit: I don’t trade by myself anymore because of my emotions I use a EA bot instead

[sweetpeach]

That’s so crazy.. my name is Samantha and I work at an insurance company 😂

[personalfinanceprofessor]

START EARLY!! I know people say, ohhhh, I'm young, I'll take care of it down the road. By starting ASAP, TODAY, you will reap the benefits! ...and it really won't be as far away as you think.
-Personal Finance Professor

[kalyanhr]

video is short and informative. Thank you.