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Saw this on Reddit, Sample size: 4000 consultants
McKinsey & Company McKinsey & Company been working here one year and received pretty positive feedback. Given the expectation for people of my tenure to transition to EM in a year or so, I can’t see myself staying due to the WLB as an EM. I’m 35 and have 2 young kids. Can it even be realistically done? Would love to stay but I don’t see a balance which would keep my family happy. What options do I have from there?
You’re checking out and this pops up. Wyd?
The rental shuttle line at SMF 🤦♂️
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Yes. When I started working I made only $19k but always did 401k and as soon as I could I did ESPP because it was 15% min discount. In my 20s that stock was vacation, emergency or holiday money so I never got into debt. The money I put into 401k is worth $2m. The magic of compounding interest. If you invest just 1/2 of every raise or bonus you will not be sorry. I took my parents advice and roughed it out on no eating out for a year to learn to live on less than if the money was coming out for expo. The money I saved was for emergencies. Easier to do when you are young, no kids.
You don’t need to compound interest in a 401k only. In fact most of the tax benefits are futile in the end, capital gains is way better.
Buy real estate! Over the long run it will make you more, and it will make you cash flow now, vs deferring ur money towards retirement. Get enough cash flow by a younger age and you won’t need that huge nest egg. You can retire early’
I want to do real estate, D8. What’s your current plan? My area is quite high to invest in. I’m thinking of buying further up northeast or seeking to flip to build up capital.
YES. As BCG1 said it’s free money from your company’s matching. Here’s a handy chart to prioritize your investments. Amounts are off since it a couple of years old now.
Not a video but WhiteCoatInvestor has a number of good blogs on backdoor IRA. For mega backdoor check out the bogleheads forum
Die before hand ;)
What do you mean “is it worth it?” It’s literally free money
OP, I will tell you something I do that has helped me. I contribute to my 401K, but in my mind that account doesn’t exist. So, continue contributing into it and just watch it weekly but again assume the account doesn’t exist. It’s a long term investment and in other to see it grow just invest into it and don’t touch it.
It’s only free if it’s vested. I don’t see many staying in consulting the 3-4 years needed
it is 4 years for 100%. it is 20% after 1 yr, 40% after 2yr, 60% after 3yr, and then 100% after 4. great? no. reasonable? probably. still free money and a 401k with amazing low cost options. low cost 8s how you win the investing game.
if you want to get indigent then do it over the small and no after tax contribution, aka mega backdoor Roth.
they do also contribute to a cash balance pension that you get when you leave. but you've gotta be in 2 yr really to get anything. but more free money.
I have been reading up on the "Backdoor Mega Roth"... I would be interested in knowing if anyone here has done it.
edit, I missed that you said mega ... Deloitte doesn't allow after tax 401k contribution. I asked. disappointing.
If you can generate a steady, reliable, tax-advantaged stream of passive income instead then that’s the only better option I see. Real estate is the obvious one, but it comes with its own set of risks
1. Buy gold 2. Bury in safe in ground 3.??? 4.Profit
But is it worth it if you die before 60?
Thanos has taught us well.
Tbh I would buy stocks. FLSY was up 100% since ipo (currently down a bit, buy the fucking dip)
Actually I would sit on the cash in a brokerage account until some major market correction like dec 2018 then fo all in on a mix of FAANG, biotech, pharma, and other stocks
probably the worst advice given. seriously.
yes blindly believe that. then ask anyone that bought in 2007.
to be clear, it is a good factor to have, but it isn't to be entered into blindly thinking it has nowhere to go but up. I've been on both sides. luckily I didn't get burned too hard because I knew the risks. meanwhile i still have a property I bought in 1999 with a mortgage paid by renters since 2002, but it hasn't been roses.