Home Forums Hunting & Shooting Hunter's Campfire Invest, or pound the 401?

I always see the price of the stock go down what the dividend was. Everytime I get .60 div on my BP shares, the stock goes down .60. Then I have to pay taxes on that? Sucks. I had a crappy mutual fund ( EAEAX) I paid 4.73% load on and the $1.03 dividend came out and the price went down $1.00. I see no reason for high div. in a taxable account. Please correct me if I'm wrong. I would rather feel stupid and learn something than stay wrong with an idea .

Simply tell you HR person you want to add after tax money to your 401k after you reach the 24k limit.

Another good deal is a 529 fund. You can direct contributions to a 529 tax free provided they are later used for the college education of your children or grandchildren. Start early enough and quite a lot can be accumulated. My state offers several mutual fund choices in which to invest the funds, including no-load Vanguard funds.

The 529 is even a better deal than a 401(k) IF you know you're going to pay for someone's college expenses. If they don't go to college, you get to take back the money (which will probably accumulated to a large amount by then) but have to pay a 10% penalty.

Kenneth, what you are doing shows me you will be a winner. Now for the bad news, you cannot fill up your 401k bucket with the 24k and then get the benefit of opening up any other type of retirement account, against the law. Good news, you can continue to put money into your Company's 401k after the 24k limit is met, BUT any amount over the 24 has to be taxed first, then it can sit in your 401k and grow tax deferred until you retire and begin your withdrawals. This "extra" money you add to your 401k can also be rolled into a ROTH IRA, but you have to pay taxes on the gains the year you roll into ROTH.
Simply tell you HR person you want to add after tax money to your 401k after you reach the 24k limit. There are many more options to if your Company offered them, most companys don't except to their very top earners.
Ihookem--it is ok to have growth company's that do not pay dividends. But, your CORE money should produce income, it's much more effective. Also volatility is much higher in non dividend paying stocks. I only own one none paying stock, Google A share, their data trove is incredible, but I am only willing to buy it at 20 times earnings or less, so I have very few buying opportunitys:))
I would rather have a client buy a Small or Mid cap fund if they want more alpha/growth.
Have a good evening, and thank a solider tomorrow if given the chance.

Kenneth, what you are doing shows me you will be a winner. Now for the bad news, you cannot fill up your 401k bucket with the 24k and then get the benefit of opening up any other type of retirement account, against the law. Good news, you can continue to put money into your Company's 401k after the 24k limit is met, BUT any amount over the 24 has to be taxed first, then it can sit in your 401k and grow tax deferred until you retire and begin your withdrawals. This "extra" money you add to your 401k can also be rolled into a ROTH IRA, but you have to pay taxes on the gains the year you roll into ROTH.
Simply tell you HR person you want to add after tax money to your 401k after you reach the 24k limit. There are many more options to if your Company offered them, most companys don't except to their very top earners.
Ihookem--it is ok to have growth company's that do not pay dividends. But, your CORE money should produce income, it's much more effective. Also volatility is much higher in non dividend paying stocks. I only own one none paying stock, Google A share, their data trove is incredible, but I am only willing to buy it at 20 times earnings or less, so I have very few buying opportunitys:))
I would rather have a client buy a Small or Mid cap fund if they want more alpha/growth.
Have a good evening, and thank a solider tomorrow if given the chance.

Good stuff here, but could you please clarify the amount allowed pretax.

Everything I see or knew was 6500 per year, is that 6500 per account? Where did 24k come from?

Is it 24k allowed pretax per year per-person?

.
I put over 100k in from my pay checks every year into retirement plans,

I am 100% right about over contributing to your 401k, I have done it myself for 30 years.
You are simply wrong about this.
Now, you may or may not be right about the additional IRA bucket available for those whose earning are 98k or below. I do not have clients at that salary level.
But I know my clients can't.
Stick to what you know, and admit what you don't , life is easier that way. Hate to be ugly, but I know what I know.
I put over 100k in from my pay checks every year into retirement plans, various plans but all are available though the brokerage company I work for, and all legit.
I also have converted my over payments into my 401k into a ROTH IRA, had to pay taxes on my gains, but at the end of the day in sits in a ROTH even though my pay is above the ROTH annual salary.
Now I suppose that's wrong to isn't it?

There is no may or maybe right. I gave the link from the IRS that is crystal clear. Plus, this IS my day job. I am a CFP.