Is a 401K enought to retire on?

Question

My husband, for some reason, is against investing and saving for retirement. He thinks our 401K is enough. Is it enough??? I keep hearing that it's NOT. I want to invest. Even if it's just a small amount.

Answer 1

If your 401K has $100 in it, then no, it's not enough.

If your 401K has $5,000,000 in it, then yes, it's plenty.

(Do you understand why your question really doesn't make a whole lot of sense?)

Oh, and by the way, most 401K plans *are* investments. You should read the literature that comes with yours and familiarize yourself with what they're doing with your money. I'll bet they're investing it.

Answer 2

I would invest in a Roth IRA along with a 401K. But it depends on how much money you have in you 401K and what your age is at the current time. Can't really depend on social security.

Answer 3

For years, the adage for retirmement was

1/3 pension (20+ years of service)

1/3 SSA benefits

1/3 savings

For almost everyone, the 401K is a substitute for the pension (because they don't have one), not a substitute for savings.

Plus if you regularly save/invest anyway, you are less likely to raid your retirement funds in an emergency or if you are laid off of work.

Answer 4

IT REALLY DEPENDS ON WHAT TYPE OF INVESTMENT THAT YOUR IN AS WELL AS HOW MUCH MONEY IS VESTED IN YOUR ACCOUNT.