Quote:
|
Originally Posted by punked out comp
avx- What do you mean 401k
It sucks that I cant get a job till 16. I have a lot of plans for when I turn 16, A LOT.
Also, we're all computer obsessed ppl here. why cant we get a 6 figure a year job in that field?
|
A 401k is a retirement plan. Some companies have it, some do not. It's good to have, but there are other solutions to a retirement account if your company does not have a 401k program.
A 401k is basically the same as a savings account, only you decide how much you want to take out of your paycheck each time, anywhere from 1% to 30%, you can change it from month to month, and they take that month, and instead of just putting it into a savings account, they put it into 1 of several different kinds of money market accounts, ususally a mutual account, where they take a group of people's money, and invest it into the fortune 500 companies, and only in the fortune, because thier reasoning is, they are the fortune 500 companies for a reason, they are the most reliable, and stand the best chance of making money for you, and since your cash is in the market with a group of other peoples money, its much safer for you. My boss has had his 401k for 7 yrs and its about to hit 55k this year, and you have to consider the stock market has been pretty bad this last few years, but he has always made money off of it. So just think about how much money he will make in the next 7 yrs when the stock market starts to spark who knows how much he will make. And if you ever need to barrow money, instad of going to the bank, where you pay interest and throw the money out the window, you can barrow from your 401k and you pay the interest back to yourself, so you barrow your own money, and pay yourself your own money back, with interest...Its a win/win situation...
Look at me, Im rambling...sorry...ask your economics teacher or use google.
-avx