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Other Opportunities in the Financial Sector Discuss other legitimate opportunities to earn money in the financial sector.

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Old 12-06-2007, 09:36 PM

Default How much of your earnings to put in 401K?

What percentage of your earnings would you put in your 401K account?
Currently, I am setting aside 6% of what I earn in a 401K.
Is that a reasonable percentage?
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Old 12-07-2007, 03:28 AM

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It depends Mustafa. Up to what percentage is your company matching? If you company matches up to 6%, then yes that is good enough. If it less, for example you company matches up to 3%, then you might want to go back to setting aside 3%. Review your Human Resources manual.
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Old 09-18-2008, 03:54 PM

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At a minimum, you should be maximizing your company's 401K match, but if you aren't saving in other ways, you likely want to contribute in excess of that match. Even if you are saving in other ways, 401K is one of the best savings vehicles for retirement. My financial advisors (who don't manage my 401K) told me that I should max out Roth IRA first and then 401K second and then save in other ways (e.g. have them manage the money). There are limits on both Roth IRA (you can only deposit into it if your income for the year is under a certain amount, and then you can only deposit up to $5K without any catchup contributions) and 401K (think the limit on that is 15.5K deposited by the employee).
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