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, 20 Nov 2009 19:09:54 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Weekend Linkage - January 6, 2007 | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/comment-page-1/#comment-33785 Weekend Linkage - January 6, 2007 | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing Sun, 06 Jan 2008 16:31:26 +0000 http://www.thesunsfinancialdiary.com/2007/01/18/a-better-way-to-invest-in-401k-and-get-better-return/#comment-33785 [...] David at Money Ning suggested make bigger contributions to 401(k) plan at the beginning of the year.  One year ago, I had a similar idea [...] [...] David at Money Ning suggested make bigger contributions to 401(k) plan at the beginning of the year.  One year ago, I had a similar idea [...]

]]> By: AllFinancialMatters » Blog Archive » JLP’s Weekly Roundup XL http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/comment-page-1/#comment-1601 AllFinancialMatters » Blog Archive » JLP’s Weekly Roundup XL Fri, 19 Jan 2007 06:12:15 +0000 http://www.thesunsfinancialdiary.com/2007/01/18/a-better-way-to-invest-in-401k-and-get-better-return/#comment-1601 [...] Sun looks at a different way to invest his 401(k). [...] [...] Sun looks at a different way to invest his 401(k). [...]

]]> By: Investing Guide 101 http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/comment-page-1/#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 101 http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/comment-page-1/#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: Yan http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/comment-page-1/#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 Sun http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/comment-page-1/#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: Yan http://www.thesunsfinancialdiary.com/personal-finance/a-better-way-to-invest-in-401k-and-get-better-return/comment-page-1/#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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