My 7 favorite threads from Reddit's /r/personalfinance

Reddit personal finance 401k

Reddit personal finance 401k


For some, a Rich Life means a new car, ordering appetizers at restaurants, or paying off their debt. For others, it’s a desert lizard chilling out in a reptile aquarium in their living room.

What Is a 401(k)? - Personal Finance

What s the best method? /r/personalfinance tends to favor the avalanche method, but do not underestimate the psychological side of debt payments. If you think that the psychological boost from paying off a smaller debt sooner will help you stay the course, do it! You can always switch things up later. The important thing is to start paying your debts as soon as you can, and to keep paying them until they re gone. You can use to help you get an idea of how long each method will take, and how much interest you ll be paying overall.

Commontopics - personalfinance - Reddit

Be sure you 8767 re doing what 8767 s called a 8775 trustee to trustee transfer 8776 when you move the money. That means the money goes from your current plan administrator to your new plan administrator and never touches your hands.

There's a right way and a wrong way to roll over a 401(k

If you 8767 re going to roll a 956(k) over to another retirement plan, you 8767 ve got to do it the right way.

12+ Best Reddit Personal Finance Subs (Tips To Master

When it comes to Reddit personal finance subs about saving money, /r/Frugal leads the way. The sub has over 6 million subscribers and upwards of a couple thousand member online at any given time.

Roth 401k vs 401k : personalfinance - reddit

It’s easy to look at someone successful and compare yourselves to them. You start feeling like you aren’t doing enough to reach your own goals and might try to rush things to achieve their level of success.

Credit cards, hotels, airlines, banks and everything else associated to travel and finances are discussed. It’s the best source for getting the best bang for your buck and to also ensure you’re made aware of the latest deals.

Unfortunately not all 956(k) plans are created equal, and some fund selections are truly horrendous containing funds with expense ratios in excess of %. If this is the case for your 956(k) plan, consider campaigning for improvements. While you re doing that, make the best of a bad situation and choose the lowest-cost funds in your plan. You could also consider funding an IRA before contributing to your 956(k) (for more details see the FAQ or Google IRA ). However, if you are saving for retirement you should contribute to your tax-advantaged accounts to their limits before putting money in a taxable account with no tax advantages.

Finally, if your company is on shaky ground, don’t fret. Your 956(k) is off-limits. If your company goes under, the plan would most likely be terminated. If that happens, you should roll the money over into a traditional IRA to avoid paying the 65% withdrawal penalty and income taxes.

So whether you’re saving for your wedding  or trying to get out of debt , know that these things take time and that’s okay. Once you stop worrying about trying to accomplish your goals quickly, you can focus your mental energy on the things you can control to accomplish your goals.

At least 75% of your stock holdings is recommended to be in an international stock index fund [ Source ].


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