Re:Ask HN: 30+ year olds - how much have you saved so far?
by EADGBE on Wednesday January 30, 2019 @09:39AM
(#19035332)
> Isn't this is the same as just saving myself?
Yes, it is. Though you'll more than likely see returns much higher than a standard (but safe) savings account will give you. You'll also get that 2% float on top of free money.
2% still isn't bad. Free is free, as I said.
In my particular case it's only 5% (best case):
50% match up to the first 10%.
So if I contribute 1% of my pay to it, I'll get a .5% match. If I contribute 10% to it, I'll get a 5% match. I can contribute more but I'll only ever get that 5%.
In your case, this is good compared to my situation in that you don't have to contribute 4% to get that 2% match, you can contribute even just 2%.
This is in the US FWTW. It's a pre-tax situation. I don't pay taxes on my contributions or my employers contributions; but I do when I withdraw them (earliest I can start withdrawing is age 59-1/2. The assumption is that when I start withdrawing, my tax rate will be lower than it is now so I'll still "come out ahead".
Yes, it is. Though you'll more than likely see returns much higher than a standard (but safe) savings account will give you. You'll also get that 2% float on top of free money.
2% still isn't bad. Free is free, as I said.
In my particular case it's only 5% (best case):
50% match up to the first 10%.
So if I contribute 1% of my pay to it, I'll get a .5% match. If I contribute 10% to it, I'll get a 5% match. I can contribute more but I'll only ever get that 5%.
In your case, this is good compared to my situation in that you don't have to contribute 4% to get that 2% match, you can contribute even just 2%.
This is in the US FWTW. It's a pre-tax situation. I don't pay taxes on my contributions or my employers contributions; but I do when I withdraw them (earliest I can start withdrawing is age 59-1/2. The assumption is that when I start withdrawing, my tax rate will be lower than it is now so I'll still "come out ahead".