Please watch this if you want career mobility and financial independence in your 40s and beyond. In order to achieve this, you will need to invest heavily in your 20s and 30s.
|What is a 401K? What is a tax deferred retirement account? What is social security? College grads! – YouTubeWhat is a 401K? What is a tax deferred retirement account? What is social security? College grads!www.youtube.com|
If you put $20,000 a year into your 401K, it is tax deferred. Do you understand what that means? For example, if you did not put it into your 401K and wanted to take it home, the government would keep around $6,000 in taxes. That means your take home would only be $14,000. So, you made around 30% right away. Is there another investment out there that can get you a 30% return right away? No, not legally (in general).
I would at least put in what your employer will match dollar for dollar.
Let’s say your company will put $6K of its cash in your 401K (but only if you put $6K of your own). Some people might actually say no thank you and not put in 6K of their own money. However, you are saying no to an extra $6K that your employer wants to give you. Also, by putting 6K of your own in, the government will not take $1800 of it in taxes (if you take it home). So, with your 6K investment, you make an extra $7,800 right away on a 6K investment, that is over 100% at once. Also, that 12K total a year could be worth $2M by the time you are 40. Just the interest on 2M is 60-100K a year. So, I would at least put in what your employer will match dollar for dollar.
Please contact me for more material.
Thank you. Sime
Sample Lectures & Should You Major in Supply Chain Management?
Dr. Sime (Sheema) Curkovic, Ph.D., Professor, Operations/Supply Chain
Western Michigan University, Haworth College of Business
“WMU Integrated Supply Management (ISM)…Nation’s best undergraduate SCM program (Gartner); 2nd in SCM technology (SoftwareAdvice); 2nd in top global SCM talent (SCM World)”