• TIEPilot@lemmy.world
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    1 year ago

    What gets me riled up is I work w/ a bunch of GenX and some don’t even contribute to the 401k that is matched 6% (aka FREE MONEY). I just don’t get it, my leave money on the table. Go low risk if your not sure…

    • NotYourSocialWorker@feddit.nu
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      1 year ago

      Do you know if they have the economy to actually “loose” 6% of their salary?

      It might be “free money” in their retirement fund but they still have to afford to actually add anything to it.

      • TIEPilot@lemmy.world
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        1 year ago

        He owns 2 houses and a plane, plus gets disability from the military (I have no issue w/ tat but an additional revenue stream)

          • TIEPilot@lemmy.world
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            1 year ago

            Its found money, it makes no sense. Even if I was struggling w/ my pay I would try to throw in 1-2% to get the matching.

            • NotYourSocialWorker@feddit.nu
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              1 year ago

              Okey, so now we’re back in the hypothetical. So you’re saying that even if you were living paycheck to paycheck and and had to choose between saving and giving your kids food at the end of the month you would still choose to save?

                • thetreesaysbark@sh.itjust.works
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                  1 year ago

                  Whilst I agree with that sentiment, situations change and a person who was once well off can find themselves in a position where they have to make tough decisions between providing and saving.

                • NotYourSocialWorker@feddit.nu
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                  1 year ago

                  Say that to the person living in a state without a functional sex-ed in school and/or abortion is banned.

                  Or as someone else commented, situations change. Believing that someone can make a plan that is guaranteed to not go awry at any point during the, at least, 18 years they have responsibility for a child is borderline delusional.

                  But you still didn’t answer the question: Would you save for your pension or feed your kids?

      • dude@kbin.social
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        1 year ago

        Assuming it’s a 1:1 match and is immediately vested they would technically still gain more money by contributing, immediately withdrawing all of it, and paying the associated taxes and fees.

        So it’s definitely possible they’re leaving money on the table either way.

        • NotYourSocialWorker@feddit.nu
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          1 year ago

          Interesting, didn’t know of that possibility. Is it also possible to withdraw just a part and save some “for free”?

          I’m not from the US so the exact workings of your pension system is a bit beyond my expertise 😊

          • AA5B@lemmy.world
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            1 year ago

            No.

            – employer matches typically have a vesting period where it’s not yours to withdraw

            — actual withdrawal means paying the taxes you skipped plus a penalty

            – loans can be useful, but you have to pay yourself back and meanwhile that money is not invested.

            – loans have a low interest rate, so your loan to yourself is making almost nothing compared to if it was left in an investment

            – loans need to be payed back immediately if you leave the company for any reason, otherwise it’s an early withdrawal with all those taxes and fees

      • dezmd@lemmy.worldM
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        1 year ago

        Several 401k providers I had before going the self employment route offerred loans secured by the 401k blanace for home purchasing and other uses, and at the end of the day, if you end up in an emergency financial crunch can always cash out the 401k, counts as income that you pay on that years income tax plus 10% irs early withdrawal penalty (amounts may have changed since I last looked).

    • InverseParallax@lemmy.world
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      1 year ago

      It’s not that…

      Boomers legitimately never imagined they would get old, in their minds they’re all like Trump, stuck in their flush of youth, they are Al Bundy still celebrating his 4 touchdowns in one game on permanent loop.

      And sadly, while they abused the fuck out of us, some of us caught that same disease.