Question:

Can someone my age ( just turned 34) with no assets make money with a 401k ?

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I just turned 34 and finally got my life somewhat straight. I found a decent job about 40k a year. and am ready to start investing. can someone at 34 just starting out have a nice sum of money at lets say 67??

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  1. Yes, you can do very well for your future with the 401k plan at work... very " painless" ( comes out of your check before you see it !) Even if you put in just 10% of your pay yearly...$ 4000. ( $ 77.00 a week if you're getting paid weekly)...in 26 years, when you're 60 ( not 67 ! )...you could easily have $ 480,000. in your account. ( Your 401 should be decently enough invested to get you about a 10% return per year )...

    It's hard to give up that $77.00 , I know...but in a couple of months...a few checks...you " get used to it".  The benefit of having it " work for you" is far better than the few more things you could afford right now, with the extra money.

    If you are getting " somewhat straight", this could be almost the BIGGEST step you take in that direction. Best of luck !!

    P.S. You probably don't want MORE advice, but here goes....if you DO get used to the saving...you can try even a little harder ( maybe after a  raise or two )...and also get a ROTH IRA started for yourself...

    as you watch your 401 progress, you should become a little more familiar with " investing"... maybe take the fund that is doing best for you in your 401...and buy into the same fund in a ROTH...it's simple, log on to Fidelity, E*trade or someone like that...everything is explained... and in the long run, a ROTH IRA treats YOU even better than the 401.

    P.P.S.  That $ 480,000. amount was just a little above average ...if you can get sort of good at picking a fund or two...and raise your returns to just 13%.. you'd be closer to $ 800,000.  ( again, that's at 60...if you keep working 'til 65/ 67...you should have a mil, right ?)  A loaf of bread will probably be $ 5.00 by then...but what the heck...you gotta try something.. .


  2. Sure.

    Put in 15%.  That's $6000 a year.  You should see it rise to $300,000 by age 67.

  3. Go for it,

    Put as much as possible into the program, especially if your company is going to match your investment,

    But regardless, you would be foolish not to invest the maximum you allowed,

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