Comments on: A Better Way to Invest in 401(k) and Get Better Return? http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/ Fri, 03 Feb 2012 17:42:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Investing Guide 101http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1600 Investing Guide 101 Fri, 19 Jan 2007 05:34:54 +0000 http://www.thesunsfinancialdiary.com/2007/01/18/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1600 Hello The Sun, a good resourceful site on finance.Thank you for sharing your helpful information and the link of Money monk website, also a good blog. I liked your idea of making bigger contribution in the begging of the year and later we can invest with the money. Hello The Sun, a good resourceful site on finance.

Thank you for sharing your helpful information and the link of Money monk website, also a good blog. I liked your idea of making bigger contribution in the begging of the year and later we can invest with the money.

]]> By: Investing Guide 101http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1598 Investing Guide 101 Fri, 19 Jan 2007 05:31:35 +0000 http://www.thesunsfinancialdiary.com/2007/01/18/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1598 Hello The Sun, a good resourceful site on finance.Thank you for sharing your helpful information and the link of Money monk website it's also a good blog. Hello The Sun, a good resourceful site on finance.

Thank you for sharing your helpful information and the link of Money monk website it’s also a good blog.

]]> By: Yanhttp://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1597 Yan Fri, 19 Jan 2007 05:17:28 +0000 http://www.thesunsfinancialdiary.com/2007/01/18/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1597 You don't have to wait for a year. I suggest modeling it out instead. It shouldn't be too hard. Just need to find the right investment calculator online.As for "enough money", what I meant is that not everyone can afford bumping up the contribution rate up to 20%. Sometimes fixed 15% is all you can do or you will have to borrow against your future revenue and pay interest on the loan thus nullifying your potential advantage. You don’t have to wait for a year. I suggest modeling it out instead. It shouldn’t be too hard. Just need to find the right investment calculator online.

As for “enough money”, what I meant is that not everyone can afford bumping up the contribution rate up to 20%. Sometimes fixed 15% is all you can do or you will have to borrow against your future revenue and pay interest on the loan thus nullifying your potential advantage.

]]> By: The Sunhttp://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1591 The Sun Fri, 19 Jan 2007 03:14:19 +0000 http://www.thesunsfinancialdiary.com/2007/01/18/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1591 The question that whether we will have a sizable money available at the beginning of the year to make one-time investment is a valid one for taxable accounts because you control when and how much to invest. For a 401(k) account, on the other hand, not everybody has the flexibility of choosing their own frequency. I feel contributing a little more in the first half than the second half may bring me a better return. But this is only a thought and I haven't put it into work yet. I want to try it and at the end of the year to compare how many shares I buy with this scheme against how many I would buy with a fixed percentage. It would be interesting to see, though one year is not enough to get any concrete conclusion. And it will depend on whether we will have a up or down market this year. The question that whether we will have a sizable money available at the beginning of the year to make one-time investment is a valid one for taxable accounts because you control when and how much to invest. For a 401(k) account, on the other hand, not everybody has the flexibility of choosing their own frequency. I feel contributing a little more in the first half than the second half may bring me a better return. But this is only a thought and I haven’t put it into work yet. I want to try it and at the end of the year to compare how many shares I buy with this scheme against how many I would buy with a fixed percentage. It would be interesting to see, though one year is not enough to get any concrete conclusion. And it will depend on whether we will have a up or down market this year.

]]> By: Yanhttp://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1586 Yan Thu, 18 Jan 2007 22:46:38 +0000 http://www.thesunsfinancialdiary.com/2007/01/18/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1586 No doubt, the sooner you start the more return you get. Start 529 college savings for your kids while your wife is still pregnant and reduce your monthly contributions while achieving the same end result. The same logic applies here but in a time frame of each year.The question is "do you have the extra 8% needed in the first half of the year?" No doubt, the sooner you start the more return you get. Start 529 college savings for your kids while your wife is still pregnant and reduce your monthly contributions while achieving the same end result. The same logic applies here but in a time frame of each year.

The question is “do you have the extra 8% needed in the first half of the year?”

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