Quote:
Originally Posted by MightyMouseTech
Then they should not be buying a new $50k car. 
Some of his scenarios were people in their forties. If you have $40k saved up when you are 40. Don't plan on retiring.
Admittedly, I am not familiar with the US 401k plan. What exactly is that? Does it shield you from taxes while in one? Do you pay tax on withdrawl, or do you get tax relief when you deposit the funds? |
Lots of different scenarios with taxes and 401s.
There is also a limit on how much you can contribute to your 401k per year. You could be a 25yo, who has only been in the workforce for a year or 2, have a 6 figure salary and a nice chunk of change saved up, and only have 30-40k in your 401k. Hell, Ive been putting in 6% + 6% matched by my employer since i graduated, averaging 80-90k/yr since graduation for the last 5 years, and i dont have 6 figures in my 401k, but have 6 figures in my savings accounts, and can comfortably afford a 50k car along with a house with my current salary. Add in my wifes salary and its just gravy.