Of all generational cohorts, older millennials are most likely to generate enough income to retire comfortably, according to the latest Vanguard Retirement Readiness report.
Specifically, millennials aged 37-41 have the greatest chance of landing a comfortable retirement.
Yay, wealthier Millennials? Way to grind that 401K
That was my take away. If you earn a lot of money you can fund a good retirement.
The only other real argument I found was that millennials in general may be better off because they entered the workplace when these retirement plans activate automatically whereas boomers and gen x had to actively sign up for them.
Your retirement plan activated automatically?
I think what they meant was 401k enrollment is now included in new employee onboarding by default in most places now.
Ive still never had that, Im over 30 and the only retirement account I have I made myself outside of work.
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I work in Human Care like about 25% of millennials, I don’t know many people whos orgs offered retirement to them, a lot make their employees purchase insurance through the ACA, ive seen ‘How to apply for ACA’ in onboarding handbooks and handouts, but retirement is rarer.
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IRS defines 403B plans, which are similar to 401k, but specific to teaching. Also public school teachers have retirement plans through unions (at least in NY, MA, CA)
You can’t trust pensions. Goldman Sachs will just dump it all in mortgage backed securities
My employers 401k plan was automatic. Let it sit for 3 years and came on hard times around 2021. I actually lost ~15% of the money I put in. Cashed it out, opted out of automatic contributions and haven’t looked back. I don’t need some investment firm to lose my money for me, I’m already good at that on my own lol
Please revisit. That’s usually a bad idea. Yes, aggressive investments can lose money in short terms like one year or less - actually there was a long term piece of advice to not invest in stocks any money you need for the next five years. However prudent investments, like an SP500 index fund , have always increased in value in like ten year periods, and over some similar period have always beaten inflation
There’s a lot to learn about investments, but
401k’s can be VERY useful to most of us over the long term, so you should reconsider whether it’s good for your situation too
If I had the funds to invest, I would probably have a Roth IRA or something simple but the hard times never let up. I work 60 hour weeks and still live paycheck to paycheck. I’ve only earned enough in the last couple of months for me to get health insurance again. I can’t afford to give even 3% of my paycheck away (the minimum for my company to begin matching) at the moment and that’s not likely to change in the next year or two.
I really do appreciate the concern and if I were in a different place, I’d reconsider. I was being a bit bitter and sarcastic in my comment but I’m in no.position to save any money
You sold when it was 15% down? And outside of retirement?
For the love of god, don’t touch your retirement savings. Consider reading this series:
https://jlcollinsnh.com/stock-series/
I needed what little was in that account because my car shit the bed on me and the repairs were more than the car was worth. Had to take that and my stimulus check to buy another beater. I’m still paycheck to paycheck and couldn’t afford to start my savings back up if I wanted to
I see. I’m sorry about your situation.
All good! I appreciate the advice, genuinely
Let me guess, you are in USA? Only there you’d be so car-dependent.
You don’t trust the pieces of shit my taxdollars bailed out in 2009? Why don’t you trust those peices of fucking shit?
Staying out of the stock market will ensure you won’t have enough to retire on.
Here kid, have a bitcoin
Oof. By the time you learn you were wrong, it’ll be too late.
Actually it’s required if you’re over the age of 30. Below that age, you can delay it. Once you hit 50, the percentage input increases significantly. I work as a state employee so it’s different than in private sector.
I think that even corporations are just enrolling people though too.
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They should be investing in a Roth account instead of standard 401k if possible. Unless you’re sure that income taxes will be lower when you need to take out that money. Roth investing pays the tax up front, and the rest is yours to keep even after it appreciates in value over time.
A 401k lets you make money on the part that would have otherwise gone to taxes. Can you show an example with numbers where paying tax up front comes out ahead of paying tax at the end?
Nope I don’t have any examples. You should invest as you see fit, after doing your own research into the options.
It’s a gamble basically but I’m gambling that taxes will be higher than the little bit more I might make on gains from the extra pre-tax money.
And if you make enough to contribute to both a RothIRA and a 401k, you should do that and not pick one over the other.
Traditional IRAs and Roth 401ks are also things.