Whats the point of this? it seems like a scam desu

whats the point of this? it seems like a scam desu.

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It good for normies who can't be bothered to invest in anything so they can have something for retirement that doesn't require me to pay more taxes on. Unfortunately for those with an IQ over 120, it's not as good as just doing your own stocks, bonds, hedge fund, or crypto depending on your level of risk.

it's an incentive to have lemmings blindly bid up the stock market ponzi

I have a 6% employer match so that's an easy 10%+/yr without doing anything.

Just opened an IRA tho and not sure what to buy. I'm used to 10x p&d shitcoins.

I do it just for the matching

It's fine if your employer is matching it, but I don't plan on living to 62 or whatever age it is, so I have no interest in it
this too

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Ponzi scheme to transfer money from the 99% to the 1%. Then they complain about why the wealth gap is widening as if they didn't give their entire retirement fund to the 1%.

It's a Ponzi scheme because if people stop putting money in or starts taking money out, the whole house of card falls.

Delaying taxes as long as possible to enable yourself to invest as much money as possible today.
Look up Roth IRA Conversion Ladder. There are ways you can get your money penalty-free before age 59.5.

You don't pay taxes on gains.

You could say that about all stonks

>Gross household income of $180k
>Stuff as much as legally possible into these things, also get full child tax credit, pass through entity deduction, HSA, traditional IRA for myself and wife
>Literally and unironically pay an effective federal tax rate of 3.8%

The system is so fucking easy to legally game if you can think ahead.

It's slave mentality, really. Accumulate ETH + read about Value / YFV / and understand the btc whitepaper.

Yes, the entire stock market is a Ponzi scheme, the US dollar is a Ponzi scheme, fiat is a Ponzi scheme. It makes my head hurt sometimes but since Im a large stakeholder in a F500 public company I profit from it.

I would hate being poor and dumb and not being able to realize the system is scamming you. Its not even worth it trying to help them either.

> Roth IRA Conversion Ladder
interesting, I'd have to do the math on how much money I'd actually be saving by doing this, still seems questionable though, I think I'd prefer the liquidity of just straight cash, but if I really save that much I guess I'll do it.

Most broke bitch millenials and zoomers are too busy complaining about rich people while spending 90% of their paychecks on the weekend and holding all the rest in 0.1% interest savings accounts while inflation fucks their ass at least 2% per year. Oh yeah and can't forget about spending 20 bucks a day on garbage fucking coffee

I have a gross income of $55k and I still max out my 401k, IRA, and HSA.

That would leave you with like 5k leftover kek

Do you live with your parents

>gross 55k
>before taxes

Wouldnt that mean he would be in debt or something lmao.

Checked Roth or traditional?

I'm a millennial. My generation is beyond fucked.

Good. If you're under 30 go extremely aggressive.

I'm left with about $23k all said and done after my contributions and taxes. Pre-tax contributions are a wonderful thing for that reason.
Nope, just in a low cost of living area. All my fixed bills (rent, utilities, internet, phone, gas, car maintenance/insurance, etc) come to about $985, so at the end of the day I have almost $1,000 per month to spend on whatever else. At the moment I divide it between $300 taxable investments and $700 as general spending on anything.

I’m moving out of the US in two years. I’m planning on cashing mine out and taking the 10% penalty and tax hits. That’s what mine is for.

401k max $19500
IRA max $6000
HSA max $3550
Total: $29050

So you are living off of $29950 less taxes? Do you live with your parents still?

Not at all. Though to be fair I only have to contribute about $1,500 to my HSA to max it because my employer contributes the rest. So it's about $27,000 of pre-tax contributions per year out of my $55k salary, which comes to $28k then minus taxes (tuned so that each paycheck only pays a minimum amount of tax so I get less than $200 refund at tax time).

Not really a scam, but you could do better on your own if you know what you are doing. 99% of people do not, so I think 401k plans help a lot of people aave without having to think about it too much.

>Do you live with your parents still?
Well the HSA I don't actually contribute $3500 to because my employer pays about $1800 into it each year, but no I don't live with my parents. All my fixed expenses come out to $985/month and I have about $1000/month to do anything I want with (currently $300 to taxable investments and $700 to general fun money spending).

Rate my 401k investment choices:

40% goes to a Large Cap Index Fund
20% goes to a Small Cap Index Fund
20% goes to my company stock fund (large fortune 500 company)
10% goes to an International Large Cap Index fund
10% goes to a REIT fund

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80% of stocks lose price in a bear market. Better to take the penalty and withdraw everything to btc with that folio.

In what way can you do better on your own?

There is no account type that will let you contribute tax deferred $19500/yr unless you own your own business and its making enough income to max out a SEP IRA.

Investment wise, sure, you could pick better investments in a brokerage account that arent offered in a 401k, but you will also be paying taxes on dividends, interest, and cap gains.

Some 401k plans offer a PCRA account which allows you to self-direct investments not offered by the 401k plan...a great way to invest in more growth oriented investments while still being sheltered under the retirement plan.

>80% of stocks lose price in a bear market.
That just means his contributions will be worth more shares until the next upturn. You have to think more long-term.