FundRobot » Investment Banking » Have any of you actually made money on a 401K after 35 years of investing? What % of taxes and fees did you have to pay?

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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

Just looking to see if any one is actually making money off their 401K.

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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

I have a self directed Roth and can put in investments of my own choosing. I earn 14%. The rule of 72 says divide the interest you get into 72 and that is how long it takes your investment to double. 72/14= 5 plus a little so my money will double every 5 years.
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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

I worked for a company for 5 years and practically doubled my 401(k) deposited amount. And it was nothing risky, most of it was in a Vanguard Index fund.

The big questions you need to look at: (a) What are your investments within the 401k? Look at the returns on the funds versus the other options they offer in your plan. You can manage to lose money in any 401k if you pick the wrong funds, and (b) What fees are they charging you? 401k fees are higher, no doubt. But a decent 401k should not be too much higher than an outside plan, maybe 1% (which is bad but should not have kept you from making a good return).
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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

yes,,, people make money off their 401K
how old are you?
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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

I am 30...after research that shows how much investment firms make, I have been sceptical, but my company does matching contributions so I have been making interest off that. I'm worried about the end game.

In response to "how old are you"
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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

I have a rollover IRA with Vanguard. Started out as a 401k & then did the rollover. Put about 50k in it though out the years. Today it is worth 275k. It's amazing what a 100 bucks here, and a hundred bucks there will do (over time). .

Taxes - you will owe both federal and state. This will all come out as regular income. So whatever your income bracket is.
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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

The small investor typically buys when he should sell and vice versa.

With the Dow at a near record level, discounting inflation, people who have not been in the market will jump on "the train", probably to find out the "train" is not leaving the station but headed over the cliff.

Even in the Great Depression, large fortunes were made. But it was the isolated investor and not the general public at large.
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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

over the long-term everyone should make money off their 401k-- ~7%/yr average. fees are typically 2% or under for an actively managed fund, and distributions for a 401k are taxed as normal income (the idea is that you'll be making less money in retirement than while you're working so you pay less in taxes).

Smart money with 35 years to retirement opens a Roth IRA and just sticks their money in index funds.

The problem with most funds is that their actual goal is the benchmark - management fees which is not just easy-- if the fund isn't doing that then they're pretty much swindling you. That and I'm convinced most fund managers are just stupid. 2013 s&p did 31.9%, 2008 s&p did -37%. This year (last 12 months) I've done 36%; in 2008 I made 16%. Last year 80% of funds did 29% and in 2008 about the same amount did -39%.

So while I work in the investment industry and it's extremely time consuming to get marginally higher returns, if you notice all the extra work I do only accounted for 4% higher return over the last 12 months-- and it's a huge amount of work (think 8-10 hours per stock every time I want to open a position... and that's with my Bloomberg terminal). Additionally, you can sit on the sidelines during a crises, which is how I did 16% in 2008-- went to cash, only picked exceptionally strong investments. If you have a job that's not investing then indexes are an excellent way to go for the amount of time required.
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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

I have more than doubled the value of my 401(k) over the last five years....if you HAVEN'T, then you are doing something horribly wrong!

You do understand that it is the choice of investment YOU MAKE inside your account that govern growth rate, right? All a 401(k) actually allows you to do is to use pre-tax income to make investments, and defer taxation until you retire...

As a general "rule of thumb", the average 401(k) holder should have a balance of around $219,000 after thirty-five years...
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Default have any of you actually made money on a 401k after 35 years of investing what % of taxes and fees did you have to pay

Very few small investors are in the scheme of things. There was a report out a month or two back that focuses on the way it is working and the regular joe, is getting screwed.
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