My daughter called for advice on how to complete paperwork for her new job.
“What percentage do you think I should put away into the 401K past the match?”
kAm$96’D ad 2?5 D:?8=6] qFE E@ >6[ D96 DE:== 32?8D 2C@F?5 :? >J 962CE 2D 2 `_\J62C\@=5 AC:?46DD 2D<:?8 >6 E@ D2G6 96C 7C@> :>28:?2CJ 5C28@?D] qFE E@52J D96’D 2 J@F?8 25F=E H:E9 6?@F89 :?DE:?4E E@ <?@H D96 D9@F=5 ?6G6C A2DD FA 2? @AA@CEF?:EJ E@ AC6A2C6 7@C 96C 7FEFC6]k^Am
kAmx DF886DE 2? 288C6DD:G6 C2E6j >J H:76 DF886DE65 2 >@C6 32=2?465 ?F>36C] x? E96 6?5[ H92E >2EE6CD :D @FC 52F89E6C F?56CDE2?5D E96 ?665 E@ 36 AC6A2C65 7@C 96C 7FEFC6 —>F49 =:<6 2?5 6=6G2E@C x C@56 =2DE H66<]k^Am
kAmq6:?8 AC6A2C65 :D 2 =6DD@? H6 86?6C2==J =62C? E96 92C5 H2J] uC@> 49:=5C6?’D 723=6D — E96 8C2DD9@AA6C 2?5 E96 2?E — E@ 2 7:?2?4:2= 25G:D@C C6G:6H:?8 J@FC C6E:C6>6?E A=2?[ H6 D9@F=5 2=H2JD 36 AC6A2C:?8 7@C E96 ?6IE DE6A] q@E9 :==FDEC2E6 J@F 42?’E >2<6 FA 7@C =@DE E:>6] (@C< >FDE 8@ :? =@?8 :? 25G2?46 :7 J@F 6G6C H:D9 E@ 2CC:G6 2E 2 56DE:?2E:@? H:E9 2?J =6G6= @7 4@?7:56?46]k^Am
kAm(9:49 3C:?8D >6 324< E@ 2 =6DD@? x =62C?65 7C@> 2? 6=6G2E@C]k^Am
kAm$E6AA:?8 :?E@ E96 3C2DD\EC:>>65 423:?[ >J 92?5D 96=5 2 D4@?6 :? @?6 92?5 2?5 9@E E62 :? E96 @E96C] x’5 7@C8@EE6? E96 6=6G2E@C C6BF:C65 2 <6J42C5 7@C 2446DD E@ C@@>D 23@G6 E96 E9:C5 =6G6=] |J C@@> H2D[ F?7@CEF?2E6=J[ @? E96 E9:CE66?E9 7=@@C] w2?5D 7F==[ x >6?E2==J 7F>3=65 H92E E@ 5@ ?6IE]k^Am
kAm%96? E96 6=6G2E@C 3682? >@G:?8]k^Am
kAmu:8FC:?8 D@>6 5:G:?6 6=6G2E@C <2C>2 DE6AA65 :? 2?5 H@F=5 96=A 86E E@ >J 7=@@C[ x 564:565 ?@E E@ AFE >J 5C:?< @? E96 7=@@C 2?5 8@ D62C49:?8 E9C@F89 >J A@4<6ED 7@C >J <6J42C5] x?DE625[ x 7:8FC65 x H@F=5 8@ 2=@?8 7@C E96 F?AC@>AE65 C:56 2?5 D66 H96C6 x H@F=5 6?5 FA]k^Am
kAmw@?6DE=J[ x 2DDF>65 D@>6@?6 23@G6 H2D 42==:?8 E96 6=6G2E@C FA E@ 9:D @C 96C 7=@@C] x 7:8FC65 E96 6=6G2E@C H@F=5 C:D6[ DE@A 2E 2 DA64:7:4 =6G6= 2?5 8F6DED 4=:>3:?8 23@2C5 H@F=5 AFD9 E96 3FEE@?] uC@> E92E A@:?E[ x ;FDE E9@F89E x 4@F=5 E96? AC6DD >J 7=@@C’D 3FEE@? 2?5 36 @? >J H2J]k^Am
kAmqFE E92E 5:5 ?@E 92AA6?] x?DE625[ x H2E4965 E96 C65 ?F>36CD 4@F?E @77 F?E:= E96 D6G6?E9 7=@@C H96C6 E96 6=6G2E@C A2FD65] %96 5@@CD 5:5 ?@E @A6?j A6@A=6 5:5 ?@E 86E @? 2?5 H9:D< >6 2H2J] x H2D :? E96 D2>6 D:EF2E:@? — @?=J ?@H @? E96 D6G6?E9 7=@@C]k^Am
kAm%96? x 7:8FC65 :E @FE — E96 6=6G2E@C 5672F=E65 E@ E96 D6G6?E9 7=@@C[ C@F89=J 92=7H2J FA E96 E@H6C] s@:?8 E9:D 2==@H65 E96 6=6G2E@C E@ C6249 2 C6BF6DE:?8 A2CEJ @? 2?J =6G6= :? 23@FE E96 D2>6 EC2G6= E:>6] p?5 5@:?8 D@ H@F=5 5C:G6 36EE6C 4FDE@>6C D2E:D724E:@?] p?5 J6D[ 244@C5:?8 E@ H92E x C625 27E6CH2C5[ 72?4J 2=8@C:E9>D 5C:G6 E9:D A:646 @7 D4:6?46]k^Am
kAm|J 52F89E6C <?@HD D96 ?665D E@ 36 AC6A2C65 — >F49 =:<6 E96 6=6G2E@C] $96 2=D@ <?@HD D:EE:?8 @? E96 8C@F?5 7=@@C 2?5 ?@E AC6A2C:?8 7@C H92E :D ?6IE H:== >2<6 96C 9@A6D @7 C6249:?8 96C 8@2=D >@C6 5:77:4F=E]k^Am
kAm k^Am
kAmk6>m{6@?2C5 (@@=D6J :D AC6D:56?E @7 $@FE96C? }6HDA2A6CD x?4] 2?5 AF3=:D96C @7k^6>m %96 s2:=J }6HD k6>m:? v2=G6DE@? r@F?EJ[ %6I2D]k^6>mk^Am
