Investment questions?

[Black Ice]

I have never invested money except into my 401k and just started that in the last 4 years. I'm 33 and my company has a 401k that I am currently investing 6% into and my wife is investing 3% into hers. I'm looking into other options and have no idea what to do. I also have stock options at $32.00 that are trading for $86 a share and have no idea what to do with them.

[Black Ice]

Ttt

[DEADEYE1]

Always max out your 401k it will not only help with your retirement it will also help with your taxes at the end of the year. Whatever you put in it reduces your total income by that amount. So if you make 50,000 per year and put in 10,000 per year then you only pay taxes on the 40,000. Its a win win all the way around!!!!

[Black Ice]

Investment questions?

Always max out your 401k it will not only help with your retirement it will also help with your taxes at the end of the year. Whatever you put in it reduces your total income by that amount. So if you make 50,000 per year and put in 10,000 per year then you only pay taxes on the 40,000. Its a win win all the way around!!!!

I'm currently maxed at 6%, just need to get the wife to up hers to 6%.

[TxAg]

^^^ by maxing out he means contributing the percentage that equates the government max which is $18k (mot including match)

https://401k.fidelity.com/public/content/401k/Home/VPContributionLimits

[blntrey3]

I'm currently maxed at 6%, just need to get the wife to up hers to 6%.

If 6% makes out your tax free 401k you make quiet a bit. The Tax free amount for a 401k for the year is close to 17k for 2015.

If you are referring to the max you employer matches, that does not matter. Increase it anyway until you max out the allowable tax free amount.

[Black Ice]

If 6% makes out your tax free 401k you make quiet a bit. The Tax free amount for a 401k for the year is close to 17k for 2015.



If you are referring to the max you employer matches, that does not matter. Increase it anyway until you max out the allowable tax free amount.

My employer caps me at 6%. My wife and I both work for the same company and the max we can put in if 6% and it's not what they match us to.

[blntrey3]

My employer caps me at 6%. My wife and I both work for the same company and the max we can put in if 6% and it's not what they match us to.

Wow thats a different one to me bud.

[EastTexasMan]

I didn't know the company could cap on what you personally contributed. I Always thought the max you could do was 16% though.

[bowhntrmatt]

My company actually made me reduce my contribution last year. Said they faced a penalty if I didn't. They don't match at all.

As for the op, I would set up a meeting with a financial advisor (I bet you have free access to the one your company uses for their 401k). If you have extra cash to invest, they will find a place for it.

[bfree]

Always max out the 401K, it adds up. It also helps reduces your taxable income at tax time.

Your options are in the right direction, but remember to look into how long you have to hold them before you can access the cash, so you do not get hit with the short term capitol gains tax....... your company, I'm sure has a holding time period and then the government has additional time frames.

[TxAg]

My employer caps me at 6%. My wife and I both work for the same company and the max we can put in if 6% and it's not what they match us to.

That's a new one on me

Have you considered an IRA/Roth IRA?

[solocam_aggie]

Not to high jack, but I am curious about this as well. Im torn right now trying to decide between putting more money towards my 401K, or using that money to pay off my student loans first.

[Black Ice]

Investment questions?

That's a new one on me



Have you considered an IRA/Roth IRA?

I haven't considered anything yet, just looking at options. I'm basically just starting to look.

[Playa]

That's a new one on me

Have you considered an IRA/Roth IRA?

Yeah, ive never heard of a company capping the individual's contribution either.

IRA or Roth would be a good one. Or a college savings plan. Obviously not retirement, but if you have kids, it will certainly help in the long run. If college is paid for and your house is paid, then you can make up a lot of ground for retirement in your last years of working, but nothing beats the benefit of time and interest earned.