[401K]Other sources of income.

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GTO_VR4

GTO_VR4

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The other day at work we were talking about 401K and how the company we work for matches up too 1% of what we put in, or something like that. Some of the older guys were talking about how they take out loans out there 401K by taking out the amount of what the company puts in. That got me thinking. It may not be much, but what the company is basically doing is giving money us money. it may not be much but itll add up soon.

now my question is. do major banks do the same thing or something similar? I know I should be speaking to my bank rep but i just wanted to hear about your expierience and maybe other ways of making the most out of income from other sources than your job.
 
If you are talking about the "match", I don't think no bank will give you free money just for investing.

I have 2% match 401k plan, but I'm not impressed.
 
a6m5
If you are talking about the "match", I don't think no bank will give you free money just for investing.

I have 2% match 401k plan, but I'm not impressed.
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thats why. youd have to have 8%+ in order to see the difference. I also have 2% for my 401k plan. Its not much, **** i only got a little more than $100 so far, but its better than nothing. Im also looking into stock sharing my company offers. As for more money in the 401K, ill probably take the extra money that i get for my 1 year raise and dump it into my 401k.
 
My major second source of income comes from bank dividends. I have an investment in Lloyds TSB which net's me a few grand a year dividends. Imo dividends are currently the best way to make money relatively reliably. The dividends from LTSB haven't changed so much as .1 or a penny in the last 10 years.
 
GTO_VR4
thats why. youd have to have 8%+ in order to see the difference. I also have 2% for my 401k plan. Its not much, **** i only got a little more than $100 so far, but its better than nothing. Im also looking into stock sharing my company offers. As for more money in the 401K, ill probably take the extra money that i get for my 1 year raise and dump it into my 401k.
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It's not that, but I don't think 401K is very effective. Heck, maybe last couple of years, it actually lost my money. I do have thousands in it, so it's not like I don't see what it does. Especially with my employer matching whatever I put in, up to 2% of my income. As far as I'm concerned, it is a good deal until past that 2%, when my employer no longer matches my input.
 
GTO_VR4
now my question is. do major banks do the same thing or something similar?
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They sure do. Open a money market account and you'll get near 5% of what you put in every year. Of course, it won't have the tax advantages of your 401k and the 401k performance might even be better.

See, 1% matching is nothing compared to the 8% you could be earning on those pre-tax dollars by investing them in mutual funds.
 
Which is nothing compared to the dividends I get from Lloyds TSB, I get 52p per year, per share. The shares I paid for I bought at £4.67 each. Which means the return is over 10%, and the tax is already paid on thoes. Do you get decent dividends from American share investments?
 
live4speed
Which is nothing compared to the dividends I get from Lloyds TSB, I get 52p per year, per share. The shares I paid for I bought at £4.67 each. Which means the return is over 10%, and the tax is already paid on thoes. Do you get decent dividends from American share investments?
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Yea, but they're riskier than the options I mentioned above. The dividends depend on the stock.
 
I don't know how much the dividends in the US fluctuate then, but over here LTSB's haven't budged in over a decade including the economic drop after Afganistan and again in Iraq. I've already made more in dividends than I invested in the bank originally, and the share value has increased. There isn't much risk or investing in a bank over here, but for dividends, LTSB's offer the best dividend per pound invested by a notable margin when your talking about buying shares in the thousands.
 

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