BlogHer - 'Investing for Dummies' was probably written for me - Comments

Also check out if your

Suzanne Wynn — Fri, 06 Apr 2007 13:20:35 -0500

Also check out if your company's plan permits loans. If they do, your 401k account balance can become more than just something to use for retirement. Many 401k plans permit you to loan yourself the downpayment money for a house out of your account balance or to pay tuition. You will give up potential gains on the money you loan yourself but it can be a better choice than borrowing from an outside lender.

- Suzanne

The Pension Protection Act Blog - http://www.qualifiedpensionconsulting.com/ppablog

I did...

HeatherB — Sat, 31 Mar 2007 07:28:20 -0500

Begin contributing as of a few weeks ago when my job began matching. I figured there was no point since they weren't matching. At first I was kicking myself but then realized that it would really be OK.

Heather B.
Personal Blog: No Pasa Nada
BlogHer CE: Business, Career & Personal Finance

401K...

Asone — Sat, 31 Mar 2007 06:40:08 -0500

This does not surprise me, many who can participate in 401K plans don't for many reasons. Its an automatic deduction, its a shame your company does not match what you put in at least 50% percent. I signed up right away once my employer offered this benefit.

It's never too late, you can start anytime. The sooner the better of course remember once you start after the first month of so you really don't miss not having the extra money in your check. good luck

Asone :)

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lol. i love your writing and

eemanee — Fri, 30 Mar 2007 19:31:10 -0500

lol. i love your writing and i can relate.

'Investing for Dummies' was probably written for me

HeatherB — Fri, 30 Mar 2007 13:35:14 -0500

I have a bit of a confession to make. Something that Iâ€™ve been keeping secret for the past 18 months: I am not enrolled in my 401(K); a statement that has probably just sent dozens of financial planners around the world into a permanent state of catatonia from the HORROR. Though hopefully Suze Orman wonâ€™t send me directly to Financial Hell for my lack of contribution, for my reasons were kind of, sort ofâ€¦maybeâ€¦ok. My job did not match our contributions and I had no way of calculating what effect giving up a percentage of my income for my retirement would do to my monthly finances. I was very well uninformed and perfectly OK with that. There was also some naivety in that my retirement is years, if not eons away, so why would I worry about that. Also I do not make enough to even think about contributing. Throw in the sad, sad fact that I am in debt â€“ not a lot mind you, but enough to give pause â€“ so why should I even think of saving?

Oh stupidity, how I love thee.

Or perhaps it was stupidity with a heaping side of being totally uninformed. My lack of care and general hesitance towards the whole deal was of course my fault, my excuse being that I am not a â€˜money personâ€™. Money and I donâ€™t get along well as I am from the bad ass school of

Then the obvious happened; my company began matching. They came up with a very well devised small group sit-down to go over, in detail, the new 401(K) package. There were sites to figure out how much contributing .09% to my retirement would kill me. And loâ€™ I find out that I can give significantly more than that because itâ€™s pre-tax. All done without me wanting to crawl into a hole and die because Iâ€™m giving more towards my retirement than to my monthly food amount. Itâ€™s all very long and complicated of course, but Iâ€™m grasping the basic tenants based on spending roughly 45 minutes with my auditor aunt on the phone â€“ a long, ear burning conversation â€“ as to the differences between Emerging Markets and High Yield accounts. She spoke V E R Y S L O W L Y and only questioned how I graduated from college with a degree in Economics, one time.

I feel slightly more like a REAL adult now. Because that whole graduating from college and having a career thing doesnâ€™t feel real until you can say â€œI must diversify my portfolioâ€ without spontaneous combustion.
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BlogHer CE, Heather B, discusses wine far more than money at No Pasa Nada.