Comments on: Should I max out my 401K?

By: Mmm

Mmm — Wed, 06 Jul 2011 16:32:41 +0000

The main idea is to tie up money for retirement! Do it!
If you need money for other things, then live further below your means and save for them at the expense of other choices.

By: Jason

Jason — Wed, 22 Jun 2011 20:13:09 +0000

I can change mines at anytime…my max now is 25% and im putting the max.

By: 56 and counting

56 and counting — Wed, 22 Jun 2011 15:55:05 +0000

I have been maxing out for several years now. Over 50, house paid for, kids grown and out, emergency fund in liquid savings, cars paid for. I have the money in a 401K money market (will not loose money, but 3 or 4% is great for piece of mind). Map out a plan that works for your family and stick to it!

By: TERRY

TERRY — Sun, 19 Dec 2010 23:24:05 +0000

MAX IT IF YOU CAN, BUT MAKE SURE YOU HAVE GOOD EMERGENCY SAVINGS . ALSO TRY TO CONTRIBUTE TO ROTH IRA’S. BUT I KNOW A LOT OF PEOPLE THAT TAP INTO THEIR 401K IN A FINANCIAL CRISIS . SO MAKE SURE YOU KEEP A FEW THOUSAND IN A SAVINGS ACCOUNT ….GOOD LUCK!

By: 401k Limit Dude

401k Limit Dude — Sat, 20 Nov 2010 17:32:41 +0000

Max it out! It's the way to go. Great feeling of accomplishment.

By: Balancing Retirement with Short-Term Goals

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By: onegirl

onegirl — Mon, 28 Jun 2010 11:49:11 +0000

When she says 'max it out', she is talking about contributing the Federal limit, or $16,500/year.

By: paranoidasteroid

paranoidasteroid — Sun, 27 Jun 2010 01:26:43 +0000

It's hard to give advice since I'm notsure how much cash you have in savings, how secure your job is, etc.

If you have a decent amount in savings (6 months + of expenses) and your job is reasonably secure, I'd go for it. I read an article a long time ago that said if you maxed out retirement accounts just the year you were 26, you would have a million dollars at 65. I think the rate of return was set pretty high, but that always stuck with me, especially since I know I'll contribute more than just for one year!

And just think – you only have to make it through 6 months of budget strain before 2011 begins and you can loosen up!

By: SP

SP — Sat, 26 Jun 2010 21:25:55 +0000

Oh i see – twice a year is better than once a year. Let us know what you decide!

By: WellHeeled

WellHeeled — Sat, 26 Jun 2010 15:55:00 +0000

I think maybe your idea might be the best… try to contribute as much as I can (I'm thinking $12,000), then make a plan to max it out for 2011.

By: WellHeeled

WellHeeled — Sat, 26 Jun 2010 15:54:21 +0000

I have around $30K in cash right now – but that's 90%+ of my cash savings – it's my Do Not Touch Until Emergency / Grad School / Need a New Car fund.

By: WellHeeled

WellHeeled — Sat, 26 Jun 2010 15:52:58 +0000

I have open enrollment twice a year, so I can change my contribution levels twice next year (Jan 2011 and July 2011), but for the rest of 2010 will be with whatever contribution I designate right now.

By: Sense

Sense — Sat, 26 Jun 2010 05:40:59 +0000

once it's in there, it's in there for good…if you feel like you'll need some of the money for something else sometime soon, don't do the max–but set aside the difference in your paycheck and see how it feels. If it's comfortable and do-able, save the money to live off of and change it to the max in Jan 2011. Even if it isn't comfortable, $10K is nothing to sneeze at!

By: Samurai

Samurai — Sat, 26 Jun 2010 02:50:52 +0000

Max for life! I'm surprised you can't adjust your contributions throughout the year. Can you double check that? I can literally change my 401K contribution every month.

I love living on less money and knowing it's get built elsewhere. Do it! Max!

By: Money Reasons

Money Reasons — Sat, 26 Jun 2010 01:50:23 +0000

If I were you, I probably wouldn't, I would definitely contribute some though! Maybe 15%, and then max it out next year?

If you have other funding for emergencies, then put it all in and let it ride.

By: Tweets that mention Should I max out my 401K? -- Topsy.com

Tweets that mention Should I max out my 401K? -- Topsy.com — Fri, 25 Jun 2010 18:56:53 +0000

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By: Laura

Laura — Fri, 25 Jun 2010 16:04:17 +0000

This is such a relevant post for me – I am going to have my student loans TOTALLY repaid this summer (!!!), and in May, I took a new job with a significantly higher salary than what I've earned in the past.

My plan: I'm turning over everything I had allocated to student loan payments over to savings/401K, and also saving extra from the increased salary – that accounts for about 25% of my pre-tax income. For my 401K, my company matches… but it's not a set match, it's determined every year (mid-year). Last year they aimed to match up to 10% of salary with a dollar-for-dollar match, which is awesome, so I was aiming to put 10% of my salary into my 401k. Is 10% what you mean by maxing out? Or is there another max I should be considering?

By: Meg

Meg — Fri, 25 Jun 2010 15:56:34 +0000

I made the decision to max out mine this year for the first time, and I’m so glad I did! It is a lot of money to be tying up, but it makes me feel so good about my finances to know I’m maxing out that account. No matter what else is going on in my financial life, I know I’m doing that one big thing right. Plus I don’t know how many years I’ll be working for a company where I have the option to contribute (or in a good enough financial position to contribute), so I’d hate to not max it out during the potentially few years I have the chance.

That said, I’d of course make sure you have some solid emergency savings first, particularly if you’re considering expensive short/mid term goals like grad school, a wedding, a car etc.
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