Quote:
Originally Posted by E150GT
"They" all say sock away this much a month for 45 years and by the time you retire you will be worth millions. Is that realistically true? I am 25 now, and have been contributing for over two years now. Is it a realistic goal for me to retire at 65 or whatever and be financially independent, or is this accomplished in theory only? It seems every recession is a major setback to all the gains made in good times. What do you guys think or know about the truths about the 401k?
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No, Social Security will.
Whew, sorry about that. I'm not the brightest financial bulb on the tree but I like the idea of my 401k contributions coming out pre-tax and many companies match that contribution (our company matches up to 8%). The key is to shift your funds to more secure (less aggressive, lower return) options as you near retirement age. There's some risk in all retirement options unless of course you go the gov't employee route and get a pension because only the gov't can afford to piss away the amount of money a guaranteed pension plan requires.
Unless you plan on cashing out, at 25, they are only losses on paper. Think of them as buying opportunities. At least that's what the Koolaid makes me think.