2021-11-13, 02:22 PM
There is not much to share since 401k is pretty much basic and limited compare to individual stock account. Each company has different plans but most have Large, Mid, and Small caps.
Do you panic and withdraw if market crashes where it drops your account from 100k to 50k? Nope, not a good idea, keep as it and continue contribution. Unless you move out ahead before crashes and move back in at the bottom then you gain more. My account has been in crash 3 times where it dropped to 50% but it goes all the way up.
Look at your plan and pick out the highest gain of Large, Mid, and Small. The percent gain on these funds are similar where Mid is the highest gain.
If you can contribute max, then do it. The benefit is tax deduction even though you will have to pay tax later when withdraw. Assume 100k with 30% tax, instead of paying 30k tax, and keep it for contribution, you may gain 100% in 10-30 years. I have been doing this to keep my tax under 15%, this is where you will be brokeass
living paycheck by paycheck. Anyway, adjust to what your spending need for contribution.
We have a group of 401k contribution with the same plan but somehow one of my coworker got rumor from internet/news and thought Trump become president then stock crashed so he moved all the funds out but that mistake caused him 120k gain before he could back in the same plan with us. Most of people in my group gain more than double depend on how much they put in. The lowest total is 500k then up to 1.5 mil.
Do you panic and withdraw if market crashes where it drops your account from 100k to 50k? Nope, not a good idea, keep as it and continue contribution. Unless you move out ahead before crashes and move back in at the bottom then you gain more. My account has been in crash 3 times where it dropped to 50% but it goes all the way up.
Look at your plan and pick out the highest gain of Large, Mid, and Small. The percent gain on these funds are similar where Mid is the highest gain.
If you can contribute max, then do it. The benefit is tax deduction even though you will have to pay tax later when withdraw. Assume 100k with 30% tax, instead of paying 30k tax, and keep it for contribution, you may gain 100% in 10-30 years. I have been doing this to keep my tax under 15%, this is where you will be brokeass
living paycheck by paycheck. Anyway, adjust to what your spending need for contribution.We have a group of 401k contribution with the same plan but somehow one of my coworker got rumor from internet/news and thought Trump become president then stock crashed so he moved all the funds out but that mistake caused him 120k gain before he could back in the same plan with us. Most of people in my group gain more than double depend on how much they put in. The lowest total is 500k then up to 1.5 mil.