Retirement - 401K and IRA Discussion
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Posted 7/23/17 , edited 7/23/17



I got a package from MassMutual yesterday. I forgot that i have a 401K account I left the company 4 years ago but the company is still managing my 401K account. It's earning money so I'm not complaining, but i do want to know how long before i can control over my own account/money.

I don't know anything about 401K or IRA accounts or what i should invest.. Anyone here can offer any tips/advice on this ? This is the picture (part of) of the first page. 100% Asset Allcoation-- I think this is the less risky investment option?

Year-to-date rate of return is 11.3%




it's the "prepare for retirement"discussion
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Posted 7/28/17 , edited 7/28/17
at least they do allow you access to your 401K account online right ? or they will just send you the paper statement every 3 month ?

401K is pretty fun to learn. Once you read through the options just try to move the money around and leave it there for 1 quarter and see how much you will earn form each option.

Asset Allocation- the the safer option to invest with little risks

the higher the risks the higher the earnings-- but are you willing to lose most of your money in worst case scenarios?

return rate of 11.3% is good.. but if you adjust inflation.. You might need to invest in other options to maximize earning-- if you want
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Posted 7/30/17 , edited 7/30/17
I'm not a consultant, but here's my basic understanding of it:

When your employer has a 401k plan you should always make at least the maximum contribution that the employer will match, because to do otherwise is effectively leaving money on the table.

The 401k from your old employer is your money. You can leave it where it is (but you can no longer make new contributions), roll it over to a new job's 401k (consolidating your accounts and letting you make contributions), roll it into an IRA, or cash it out (which would involve penalties).

There are two kinds of IRA, (Roth and Traditional). The main difference is when you pay taxes on the money you put in: Roth IRAs you pay the taxes as you put it in, Traditional IRAs you defer paying tax until you withdraw.

People are often in a lower tax bracket after retiring, which is a point for Traditional IRAs. However (unlike a Roth), it counts as taxable income, which can effect your other benefits (Social Security, Senior Property Tax Exemptions, etc.)
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Posted 7/31/17 , edited 7/31/17

iriomote wrote:

I'm not a consultant, but here's my basic understanding of it:

When your employer has a 401k plan you should always make at least the maximum contribution that the employer will match, because to do otherwise is effectively leaving money on the table.

The 401k from your old employer is your money. You can leave it where it is (but you can no longer make new contributions), roll it over to a new job's 401k (consolidating your accounts and letting you make contributions), roll it into an IRA, or cash it out (which would involve penalties).

There are two kinds of IRA, (Roth and Traditional). The main difference is when you pay taxes on the money you put in: Roth IRAs you pay the taxes as you put it in, Traditional IRAs you defer paying tax until you withdraw.

People are often in a lower tax bracket after retiring, which is a point for Traditional IRAs. However (unlike a Roth), it counts as taxable income, which can effect your other benefits (Social Security, Senior Property Tax Exemptions, etc.)


Roth or Traditional also applicable with 401K. They offered me the option of Roth or Traditional 401K when i was with them.

Roth-- taxing the contributions
Traditional- taxing the withdraws
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