If any of you weren’t paying attention to your 401k contributions over the years, T just invests it into more T for you. Well we’ve all been over paying for the last ten years and it seems like it’s going to get worse. The company is going belly up in a disgraceful manner. If you can I’d move it all into an IRA and pick your own investments because T cannot be trusted.
22 replies (most recent on top)
It's a simple enough process to move the T stock in a 401k to other funds. I've been managing mine for years and whenever T stock was at what I thought was a peak (or reasonably close to one) I moved it into other funds. The poster who said they'd have made more money stuffing it under a mattress probably never bothered to try to manage the 401k and let it pile up in T stock. Mine did well for me and I am about to retire year end with a very decent nest egg. They key is taking a little responsibility and initiative for managing your investments.
It is VERY easy to become a millionaire under the AT&T/Fidelity 401K. I did and retired at 56 and have another million outside of my 401K.
It's not really all that difficult to move the company match into whatever other category you want.
I make it a point to move it into High Cap stocks every January.
$$ave in taxes, is not how much you make, it is how much you get to keep.......and a 401k plan to me is like:
playing Russian roulette , quite lethal a game of chance in which a player places a single round in a revolver (401K), spins the cylinder (Wall Street), places the muzzle against their head, and pulls the trigger in hopes that the loaded chamber does not align with the primer percussion mechanism (hope)
Get you money and invest it in tangible asses, you wont regret it, and avoid the experts!! and save in taxes.
If you work for living the average 60k salary takes 12K in taxes out of your pay check
Say you become a landlord, buy 5 properties, rental depreciation & Tax Deductions to rental property owners.
take advantage of the tax code just like D.T.
of all the tax deductions available for owners of rental property. Rental real estate provides more tax benefits than almost any other investment.
- Interest
- Depreciation for Rental Real Property
- Repairs
- Personal Property
- Pass-Through Tax Deduction
- Travel
- Home Office
- Employees and Independent Contractors
- Insurance.
- Legal and Professional Services
Finally, you can deduct fees that you pay to attorneys, accountants, property management companies, real estate investment advisors, and other professionals. You can deduct these fees as operating expenses as long as the fees are paid for work related to your rental activity.
Did you know that:
Landlords can greatly increase the depreciation deductions they receive the first few years they own rental property by using cost segregation.
Careful planning can permit you to deduct, in a single year, the cost of improvements to rental property that you would otherwise have to deduct over 27.5 years.
You can rent out a vacation home tax-free, in some cases.
Most small landlords can deduct up to $25,000 in rental property losses each year.
A special tax rule permits some landlords to deduct 100% of their rental property losses every year, no matter how much.
People who rent property to their family or friends can lose virtually all of their tax deductions.
If you didn't know one or more of these facts, you could be paying far more tax than you need to.
You can roll all or part of your 401K to an traditional IRA or a ROTH IRA for the non-taxable part. Then You can mange it yourself. I did that because I found that some of the funds were investing in derivatives. When the dominoes all fall who is going to make good on those?
to: @ase+17wKobbt
How is the 401k a Ponzi scheme for AT&T and Fidelity? That's insane. It's invested in the stock market in very large, multi-billion dollar funds not controlled by either AT&T or Fidelity. The only benefit to AT&T is that they put their match in T stock. Boo hoo - you can move it out immediately and also, the amount they put in is pretty small - a few thousand a year for most employees. If you go to Brokeragelink, you have a standard Fidelity brokerage account - similar to most other large brokers. There's no "Ponzi scheme".
Save in your 401k. Overload it. Again - here I am, retired at 59 and financially secure because I spent 35+ years funding my 401k.
It is ABSOLUTELY STUNNING how many financially inept people there are here. Just, WOW.
I'm 50 years old. I'm still working and I am a millionaire thanks to this horrible 401K.
Those of you that are not the most confident in area of finance and investing, PLEASE don't listen to these mouth breathers saying things like, "I would have more money having it put under the matress compared with 401K..."
As a previous poster mentioned earlier, the At&t / Fidelity 401k is a good as any other out there really. You can invest 1/2 in brokeragelink and the funds they offer in the regular 401k portion are good market tracking funds and low cost.
Op ... if you are too lazy to do anything with your 401k, that is your own fault and if it is all At&t stock then shame on you.
"what are tge odds that a multi millionaire is posting in a layoff blog site? "
I work for AT&T... Got my first layoff notice in the early '90's. Hence this site...
Save and invest signicantly in low cost index funds for 30+ years, leave it alone during turbulent times, don't carry much debt, and you too can have a net worth of several million dollars.
I'm near retirement, with a plan to retire at the same income level as working, based on a 3-3.5% withdrawal rate. That means I need to have a several million dollar net worth to generate that income safely.
I was doing FIRE decades before it was a thing. I know others who have done the same.
WOW, Fidelity is Trolling hard, did not like this story
what are tge odds that a multi millionaire is posting in a layoff blog site?
2 possibilities:
You are lying
You have a mental deficiency
"The gain is for AT&T and FIDELITY, FACT: At the end of 30 years, I would have more money having it put under the matress compared with 401K, fees,overall fees are not fully reported, since you will never see them. "
You're on d–gs...
AT&T has nothing to do with Fidelity Investments. Within a week of the money coming out of your pay it is sent to Fidelity and AT&T has no contact with the money, ZERO. Don't want risk? Put it in a guaranteed interest fund.
I'm with the guy below who has been saving for retirement for decades. I'm a multi-millionaire now and I'm not an executive. All I did was live on less than I made and split the take home portion of my raises with my retirement plan. Since I can do math and use a spreadsheet, I know that my money has not been stolen or fee'd to death.
Think taxes will be higher later? Invest after tax, such as in a Roth.
The link you posted is to a mo–n. There are some many errors just on the first page, it's ridiculous. You really think the company keeps your money if you die? Think you have no control over investing the money? Think you can't touch it until you're 59 1/2? All wrong...
Good luck getting all your investment information, health advice, and knowledge from YouTube...
The gain is for AT&T and FIDELITY, FACT: At the end of 30 years, I would have more money having it put under the matress compared with 401K, fees,overall fees are not fully reported, since you will never see them.
add higher taxes to withdraw
add penalties before 59 1/2
add stress volatility market fluctuation. takes 10 years life span.
add your risk? was it worth it?
you will never know how you will fare until retirement day.
Impossible in todays world
Dont invest in 401K, just create wealth in other ways.
https://jamesaltucher.com/blog/401k-scam/
Use the care act, remove it without penalty now! Invest it in to what you will
OP that is why you should have been dumping the ATT stock each quarter. Way to go investment genius.
Lol ... thanks OP ... you investment wiz you.
Get your money out, At&t and Fidelity 401K plans are a con, ponzy scheme yo benefit at&t
AT&T has a VERY SOLID 401k offering. If you can't take the 3 minute effort to understand your own plan and build some investment knowledge, that's on you, not AT&T. Yes - they put matching funds into T stock. Yes - you can swap it out at will.
I recently took my[requested] lay off from AT&T after a 35+ year career. I've been investing in the 401k from day 1. When I left, I had over 13 years salary in the 401k plus another 5+ years of salary in the lump sum pension I'll take in January.
AT&T has tons of management issues right now and many people are getting laid off against their will, but AT&T giving you the ability to save during your career in a 401k so you can have a good retirement has never been an issue.
You can open a brokerage account in your 401k with fidelity.
I've been moving mine into other choices forever every quarter or so... Often into Large Cap, as T is a large cap, making it a sideways move asset allocation-wise. Other times, I'll move it to the asset performing the worst.
The match is free money and part of our overall compensation. Anybody who doesn't take advantage of it is pretty ignorant.
Whenever I read posts like this I really have empathy for the poster. The AT&T 401(k) has been an above average to excellent plan to save for retirement. Even the administrator, Fidelity, is a solid pick with reasonable costs and an excellent reputation. They're no Vanguard, cost-wise, but still far cheaper than many other 401(k) providers.
Their match to 401k contributions has been T stock for years - I pity the f00l who didn't regularly move the money out of that and into one of the other funds.
People need to look at their cost basis in fidelity and see if moving it out now makes sense. Now probably isn't the time to move it, there's going to be a marginal bump in price once they get rid of DirecTV and make a deal with Roku for HBOmeh.
You can move your $$$ out of T stock you know....