If an employer matches 401k at 8% is it worth it?

Match is always worth it. Even unmatched, deferred taxation is worth real money. Don't try to beat the market. Just buy the large cap broad-based ETFs with low fees and get market level returns. In 30 years when you retire that money will be worth ~8x what it is now.

Investing in crypto is what will save him

> emergency fund

Do you let t just sit in a checking? How can I make 6months of saved emergency $ be readily available but still grow or have some return?

I would add on this and say don't limit yourself to just large-cap as there is evidence which suggests including smaller-cap stocks improves returns in a portfolio. Total stock market ETF is better than S&P500.

The point of an emergency fund is quick access to your money if you get hit by a bus or your car breaks down or some shit so throw it in a savings account. The goldman sachs one might be ok, I'm not super familiar with US savings accounts but I was saying earlier if you want to actually invest your money you dont just put it all in there. Just the emergency fund

Fair point. I wouldn't invest in individual small caps, but ETFs based on small caps are a good diversification.

this is NOT a healthy lunch

>Take the 8% matching
>Allocate the money into Large Market Cap Index Funds (ex. Vangaurd 500)
>Literally retire a multimillionaire
If you don’t do this you are an absolute brainlet.

YES match your employers 401k. 8% is great, you are getting a 50% incrase guararnteed. and you will save money on taxes this way. Don't listen to Jow Forums ALWAYS INVEST IN YOUR 401K FIRST! Then IRA then HSA if youre really conservative

Other than that, FUCK savings accounts. get yourself a high interest checking account that pays dividends from a credit union or get a premiere checking account at a big bank. You'll get around 1%. Keep all your money in there. For SAVINGS, buy GOLD and SILVER. Gold and silver is the only real SAVINGS. (BTC might be too, but too volatile). The interest earned in a savings account is ALWAYS less than inflation, so dont bother. Just buy invest in stocks and hedge with gold and silver. Personally I buy 12 months of expenses worth of gold and silver as my emergency money, hoping I will never have to cash it out

Are you asking me if free money is a good thing? Stay poor you fucking retard

congrats on the new job at USAA
welcome to the 8% club

max contribution is 19k so 8% is like 1520 if you do max. if you are into the 401k shit for tax purposes then I would say yes. otherwise no

Have some in checking, some in a linked savings account and some in a tax free municipal bond fund.

Does anyone invest in passive incomes like rental properties commercial/residential.

Dividend stocks

Any advice there?

Divies: FLO is a steady, counter cyclical moneymaker

Dividend Growth Stocks - Look at stocks like Pepsi giving a 10% dividend raise yearly. Better then any rental over 20-30 years.

youtube.com/channel/UCXtrYuGksGkkyls50lPWvYQ

These anons speak the truth. For a 401(k), if it's going to be your primary retirement account (you likely also qualify for a Roth IRA, too) the goal is accumulation and risk management.
Since you're likely young, you will want to target growth stocks. Likely your 401k will allow for various ETF/funds that target specific asset classes. I'd recommend a breakdown that looks something like:
40% S&P ETF (tracks the overall S&P500)
35% Small-Cap Growth (Something like the Russell 2000 index)
15% Foreign
10% Company stock

This will be a pretty boring portfolio, but it'll allow you to build over time. If you can, max out your 401k ($19,000 in 2019 is pre-tax max contribution), but that will likely be difficult if you've just entered the workforce.

Pretty much, you're looking at:
20 - 40 years old: Growth Stocks
40 - 50 years old: S&P heavy; dividends
50 - 60+: shift to "safe" assets, like bonds and dividend aristocrats

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>Savings
OP, don't confuse the concept of savings as requiring the money to actually be sitting in a savings account. Your savings will likely be spread out in different accounts, including an emergency fund, a brokerage account, other investments (cryptocurrency, collectibles, whatever).

An emergency fund is key. When you're first starting out, try to squirrel away a single month's income. It's okay if you can only contribute a small amount per month, but you're going to want to build this up first. If something breaks, your car dies, or you need to book a trip on short notice (like a funeral) or have an unexpected bill, you need a method to pay this. Once you've built up your emergency fund, make sure it scales with your situation and salary. Only carrying one month of cash is okay when you're just out of college, but once you own a home, you're going to need more. Personally, I keep my emergency fund in a savings account, but you can get more complicated by using a bond maturity ladder (don't worry about it at this point)

So, once you've built your emergency fund, now you can start investing. A good rule of investing is only put in what you can afford to lose; assume that once you buy an investment with it, the money is written off for good. You're likely looking for growth, and if you've got a well-funded 401k, you can be riskier here. My personal stock portfolio is a mix of large-cap high-yielding dividend stocks (RDS.A, LYG, LVS, BTI), some killer growth stocks (V), and small-cap biotechs.

Also, look into if your employer offers an HSA. Intended to be used primarily for medical expenses, it can be used like a secondary retirement account. There are no penalties for HSA withdrawals on non-medical expenses after the age of 65.

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Sounds to me like you misunderstood the deal. What they're saying is, if you put 8% of your salary in the 401k, they will also put 8% of your salary in the 401k. You get an immediate 100% return on 8% of your salary. (What they aren't saying is, if you put in $100, they'll put in another $8. They'll put in another $100.)

dont do a 401k only boomers want you to hop in to stocks late

buy pepecoin instead fren

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401k tax deferred is a scam.
it is tax deferred, not tax free.
when you withdraw your 5 million dollars uncle sam has to get paid, and its actually worth 3 million.
anything that you would put into a 401k is better off in any sort of Roth vehicle, where gains will gain tax free.
not to mention the manager fees are ~1% compared to 0.05% of an ETF.

do not fall for the boomer trap, anything beyond your employer match is burning 40% of your money, and losing out on the liquidity of it.

additionally, look into the employer 8%, sometimes they say you have to stay with the company for 6 years before you start seeing anything. if thats the case, do not put any money into the 401k at all.

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Depends if your marginal rate is higher now or when you retire. If it's higher now, deferred payment saves you money.

>401k
lmao

you can roll over your 401k to roth idiot

So retarded, the stock market is going to massively and completely implode within 5 years max, probably sooner, if you buy stocks right now you deserve to lose every penny

My company is put in 6%, get 3%.

8 percent would be great.

The big concern is how reliable is a 401k

Your marginal rate will always be higher when you retire because the gains can still be taxed.
Also consider inflation. Your 1 million adjusted for inflation will be worth 2 million, but now you are paying tax on its "appreciation"
With a Roth 401k you are paying tax on the 19,000 (much lower rate)

Uncle Sam gets paid on Roth conversions.

Your employer is probably not Enron. If your 401k is invested with a reputable financial firm, it is no more risky than any other brokerage account. But, we're on Jow Forums so people who put their life savings in shitcoins will tell you your 401k is a scam (it isn't). Put in at least 8% or you're letting your employer pay you less.

you are making no sense, tax brackets also scale with inflation

if I make $80k in 2019, in 2019 dollars and withdraw $40k in 2060, in 2019 dollars, my marginal tax rate will be significantly lower

Random Walk is PHD level cope. I dont understand the market so it must be random! So fucking arrogant and gay. Top kek.

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>The big concern is how reliable is a 401k
Joke of a question.

It isn't through your company, but Vanguard or Fidelity. A brokerage. Just invest in S&P500 index funds and you will be good.

(boomer trigger warning)
bogleheads.org

Unless you want to do some serious studying and have an autistic ability to make investment decisions despite trends and pressure, just buy a broad market index fund with low fees. There should be one in your 401k options.

I agree with you, but you still have to be an exceptional investor to succeed. This guy is not that and neither are you.

roth and regular IRAs have much lower contribution limits. I agree those are better, but when those are filled up tax deferred is still better than taxable.

Absolutely this.

>wait 30 or more years to see your money by law
>better

I swear the fucking state of you cucks makes me sick

My company offers 6% and I said fuck that. I put my shit into a post tax brokerage account and enjoy the liquidity

Who the fuck thinks they’re going to make it to 62 years old? If anything, the kieks in the gov gonna raise the withdrawal age to like 70

Put it on credit and crash the system

Sounds like you don't understand long term savings and low time preference investing.

If your savings are always > 0, then let m be the lower bound for your savings. Why not have m in your 401k?

same. my company offers 6% at 6 year vesting LMAO. normies are getting scammed and the people they're paying fees to couldn't be happier

- 401ks survive through bankruptcy.
- Its unlikely (due to political unpopularity) that the gov would mess too heavily with 401ks. However, since most people are idiots, and millennial are broke, a small minority may be the only holders of them.
- just roll into into an IRA when you switch jobs.

Company matching your 401k is what they do as a replacement for giving you a pension, if you dont take it your leaving money on the table.

dude give me a bite of that fuckin pickle sandwich

I recently started a new job and signed up for the 401k. I did the max contribution with a match. So 6% of my salary and they give me 3%.

This to me is $100 a pay, then they give me $50.

But is it???

In reality my taxable income is lower so it is not costing me $100. It costs me $86. A savings of $14 a pay plus $50 free dollars. All in all I'm really only putting in myself $36 a pay!!!

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Even with the new tax changes?

Are 401ks for money just to sit there? Can I use it for travel, cars, one off expenses?

What are the penalties for early withdrawals?