Average 401k Balance

Frequently Asked Questions

1. QUESTION:
   What is the average 401K balance for the average American.?
   I hear 2 different things. One survey tells you we have a negative savings rate while another says the average 40 year old have over 100k in their 401K or IRA. How much does the average 40 year old in America really have saved in cash?

   • ANSWER:
     You can find such figures with a search.

     Your question is hard to answer because it depends on how they figure the number. Your number sounds rather high to me. I think it is like half that.

     Many people don’t even have retirement savings so it depends if they are reporting the average 401(k) for a 40 year old or if they average it over all 40 year workers’ retirement accounts.

     And it is very age dependent.

     And the “savings rate” is also a difficult number because they don’t count “investments” as savings. Sometimes, some places, they will include the 401(k)s but that is not the Fed number. The Fed in the past only counted bank deposits as “savings”, didn’t even count money market.

     401(k)s are not considered “cash”.

     So you not only have to look at the headline number but have to look at what they are counting.

     Good Luck.

2. QUESTION:
   What is the average 401K balance for a 35-year-old?

   • ANSWER:
     Here are the pitiful statistics:

     The nationwide average was 2,014 in August 2006.

     The typical American household, headed by a 43-year-old, has retirement savings of ,750

     The average American in his/her 30s that participates in a 401(k) has a balance of ,930.

     How are you doing? Better than average, I hope!

     Good luck…

3. QUESTION:
   what is the average 401K balance for a person in their 40′s?

   • ANSWER:
     It is a very rough estimate, but if you are in your 40′s (hopefully early 40′s), your 401K should have at least twice the gross annual salary of your income. The reason for that is you still have 15+ years to accumulate your assets and your 401K base will give a solid ground to increase your wealth in a much faster pace as you are heading toward your retirement.

     Check out CNN.com for more info http://money.cnn.com/pf/retirement/index.html

4. QUESTION:
   Average 401K balance?
   My wife and I are both 37 and have a combined total of 0k in our 401k’s. Would this be considered an average amount for a couple our age? We also have k in savings and K in investments. Would you say we are doing above, below or at the average for our age??

   • ANSWER:
     I would say you are doing above average. However average is unfortunately inadequate for the retirement that many would like to live. Especially with Social Security being on such a shaky foundation.

     However it seems that you guys are doing pretty well. Try using a savings calculator on ChooseToSave to make sure you are on the right track.

5. QUESTION:
   Is there a website that shows average 401K balances for your age?
   If you are X years old, and have sacked away $Y, you are in the Z percentile.

   Best answer if you can also show your percentile for overall savings (401K + taxable).

   I’d really like to know where my wife and I stand as compared to others in the US, as well as our income range.

   Thanks!

   • ANSWER:
     Here’s the data for the last tax year:

     http://www.ebri.org/pdf/briefspdf/EBRI_IB_08-20073.pdf

6. QUESTION:
   what is the average balance in 401k plans,workers 55 and over?

   • ANSWER:
     in http://www.ebri.org/surveys/rcs/2006/ (click on “saving for retirement” and go to page 2). There is a table is for all savings by age and amount for 2006. It is probably a more valid chart because people often roll over their 401k’s to IRA’s and also contribute to ROTH IRA’s .

     I believe the following figures are 2005 figures

     the following is important because it shows that the average 401k amount does not represent an accurate look at individuals balances.

     “The bottom line is that most people do not have the ability to contribute significant amounts of their income to a 401k plan. The IRS allows people to contribute about ,000 /year into a 401k plan but only a small number of workers, professionals generally making over 0,000/year, can do so. Most everyone else contributes far less. A telling statistic is that the average 401k plan has about ,000 in it. If you retire at 65 and have a life expectancy of 20 more years, ,000 will not take you very far. But the problem with this statistic is that it is an average; the more revealing statistic is that the median amount (ie the middle point)of 401k plan balances is ,000. When you have this large discrepancy between the average and the median, you do not get a nice bell-shaped statistical graph but something more like an inverted bell-shape as the values skewed higher at the exterminies of the values. In plain language, there are many people with high balances and many with very low balances and not too many in between.”

     The above is from http://brianleon.com/notes/?p=567

7. QUESTION:
   What is the average balance of a 401K by age 30?
   I just turned 28 and I have ,206.18 in my 401K. I make k(ish)/yr and am at 20% contribution. I think I am on a solid track with some good aggressive funds. I have been searching the web as I wanted to see where I stood compared to others just to have a better idea. I know its all based on what I would be comfortable living on when I am older, but I am still curious to see how good/bad I am compared to the national average.

   • ANSWER:
     The national median is probably zero as a good portion of this country doesn’t save a dime for retirement and relies strictly on social security.

     For a comfortable retirement I guess about a year’s salary by the time you hit 30 would be a good goal. Sounds like you are a few years ahead of the game.

8. QUESTION:
   Should I invest more into my 401k, or pay off my credit card debt first? ?
   I have an average of about a 7.9 APR right now, and occasionally will get 0 percent balance transfer offers. My company allows me to contribute 25 percent of my check.

   • ANSWER:
     What I tell people to do is this:

     1. Contribute the max amount to the 401(k) up to the employer matching contribution.

     If for example that you put in 00 a year and the employer matches up to 00 a year, then you just made 100% return on your money with no risk.

     This out ways any interest cost a credit card has (I hope!).

     2. After maxing out the match, then pay off the balance of the credit cards. Keep refi-ing with those 0% and low interest promos.

     Watch the expiration dates, cause they usually soar to 17-20% after that.

     make sure you have an auto pay feature st up when at least the min is withdrawn from your checking account. if you miss a single payment, they can void the prop and default you to a rate of 20-30% depending on your terms.

9. QUESTION:
   Can You Hep Me With My 401k Dilemma?
   I had a 401k account account with a previous employer; after leaving the company I rolled the remaining balance (a meager ,900) over to a rollover IRA…which now stands at ,300.

   Here’s the deal, I’m not contributing to that Rollover IRA, so my balance is shrinking at an alarming rate. Although, ,300 is not a lot of money, it’s still mine, and I don’t want to lose anymore.

   So what should I do, the funds I have in it are: BSCFX, FCNTX, FDIVX, and FFFX. I’m considering taking the money out, and facing the penalties, since I’m most likely going to lose that small amont of money anyway. I mean–I don’t see the point of leaving it in the Rollover IRA, If I can’t offset the losses with contributions.

   Moreover, I did start a new job last month, can I “rollover” a “Rollover IRA” to my new employer’s 401k? I’d prefer this option, if possible. I’m going to contact Fidelity, but I wanted to hear from the average Joe first. Your thoughts…

   • ANSWER:
     used to be that you couldn’t taint a rollover ira with contributions without jeopardizing your ability to roll it into a new 401k. Not the case any more so long as they money is 100% comprised of pre-tax contributions and earnings. So, contribute or rollover to new companies 401k…it’s all up to you.

10. QUESTION:
    I need to get a rolling average of rate earned month by month?
    I have a 401K and figure intrest earned month by month based on starting balance and ending balance. When I try to average the months rate together and of course some or negative, it never works out right at the end of the year for the start Jan1 and end Dec.31. What is the proper way to do this?
    Sorry the question was not clear. Lets say the first month rate earned is 5.3%, the next month -2%, the next month 4% and so on. I would like to do a column in excel that show the combined rate for month 1&2, then month 1,2 &3, and so on until the end of the year. Averaging the rates together does not seem to work using the average function in excel.
    Thanks for any help.

    • ANSWER:
      I’m not too sure of your questions, but here goes. Each month the value of your investment will grow by the interest earned and by the price. Sometimes the price may be less (a loss). If you want a monthly average over the year, take the ending amount for the year and divide by the amount at the beginning of the year. Hopefully the division is greater than 1, which means a profit. Subtract 1 and divide by 12 for your average monthly return.

      Don’t average the rate. Average the actual return for each month to determine the average rate for the period. Let’s say 100 invested in month 0. Month 1 has the account at 110. So (110/100) – 1 is a monthly return of 10%. Month 2 the account stands at 115. Now (115/100)-1 is 15% for 2 months. Monthly return is 7.5%. Hope this helps!

11. QUESTION:
    401K proNvest question?
    My wifes company is getting ready to allow you to use proNvest to help manage their 401K plans for an annual cost od 1% of the balance per year. I was wondering if that was a good price or even average. i have not been able to find this information.

    • ANSWER:
      they are simply a financial advisor. 1% of assets is high side but not abnormal. I’m all for hiring a professional to do this duty. I’ve been in this business a long time and most arrogant schmucks who think they can do better than the pros typically don’t. Certainly there are some who can but they are in the ultraminority and a 401k plan is for the masses.

12. QUESTION:
    401K Time Value Money problem. What I have to put in the following sections when I use the 401k calculations?
    If your job enables you to put ,000 per year into your 401k plan and, your employer
    puts in 50% of your contribution, and you work there 30years,
    how much will you have at retirement if your investments earn 7%?(Assuming, somewhat impractically, that your contribution, the match, and the percentage returns don’t change)Please help me!!

    Current 401(k) Balance:
    Current Annual Income:
    Expected Annual Salary Increase %:
    Percent of Salary Withheld for 401(k):
    Employer Match
    Frequency of Match:
    Years to Fund 401(k) :
    Average Annual Interest Rate Earned:

    • ANSWER:
      Based on the following numbers, you’d have ,416,911.79

      Current 401(k) Balance: 0
      Current Annual Income: 100000
      Expected Annual Salary Increase %: 0
      Percent of Salary Withheld for 401(k): 10
      Employer Match: 50% up to 10% of salary
      Frequency of Match: Annually
      Years to Fund 401(k) : 30
      Average Annual Interest Rate Earned: 7

13. QUESTION:
    Keep paying 1% for Portfolio Advisory Services despite massive losses ?
    I am wondering something that I think alot of people are right now – with the average consumer’s 401k or IRA balance being down 30-50% in the last few months – Should people with professionally managed 401k or IRAs keep paying for “managed service” or just cancel it for now and leave the funds where they are? For instance I have Fidelity’s “portfolio advisory service” and they charge me a fee of about 1% a year, billed quarterly out of my account So in addition to these HUGE drops in market value (I have lost about ,000 since July ’08), I am also getting hit for this 1% fee every 3 months out of my account too, compounding the losses. I don’t know what to do right now. I feel like my retirement account is draining down so fast that I will have nothing left soon. Naturally, when I speak to the PAS at Fidelity, they say that although they are not able to make me any profits right now, they claim they are still minimizing my losses. In other words, they claim they are helping me to “lose less” than the average investor has lost. The whole thing is just making me stressed out and sick to my stomach. Please, anyone with professionally managed retirement account experience – give me some advice on what to do in this type of economy and stock market. (IE – keeping the portfolio advisory service or not).

    • ANSWER:
      chances are good that your advisor is not worth his fees, in other words he is not beating an index fund over time. you will probably be ahead by learning all you can and cut out all the fees that you can. best would be to invest in index funds which should be no problem for an IRA but you may not be able to self direct your 401K.

      most of the losses have probably already occurred so switching won’t likely gain you that much.

14. QUESTION:
    Men and women: how do you balance your work responsibilities with children?
    Just married and trying to plan out the rest of our lives! My husband and I both work. Both of our jobs are flexible in terms of time, i.e., it’s perfectly OK for me to get to work at 3:00pm and work until 10 or 11pm, or for him to get in at 6:30am and come home at 2. Together, after taxes, auto investing in 401K’s, and paying all our bills, we have about 00 “extra” a month, most of which we invest, save for the future, or put to various funds like our 6 month cushion fund or our vacation fund. We are planning on having two children. Daycare seems awfully expensive, and we’d rather not have a stranger living in our house to help us out. I don’t mind having baby sitters, but an au pair seems like too much. Do you think it is humanly possible for my husband and I to balance family and career by simply switch off, with him going to work in the morning, and me in the evening on workdays, and then spending weekends together as a team? Or does this sound like one of those plans that will never, ever work? As is the case with most everybody who doesn’t have kids I have no idea what parenting actually entails. Finally: would you ladies trust your husband to watch your kids when you weren’t home? I love him, and he’s a very gentle guy, but he is somewhat accident prone/bumbly/stumbly, spills things way more than I do, etc. and some part of me worries that he might kill or maim the baby by accident. I mean, they’re really small and fragile, right? My husband weighs 30 times more than a newborn baby! Admittedly I weigh 20 times more than your average newborn but I would presumably have mommy instincts that would prevent me from, say, sitting on the kid and squishing it, or knocking over boiling hot liquids with my giant man hands onto the baby, and scalding it permanently for life.

    Maybe we are just not cut out to be parents. We have been saving each month for our not-yet-conceived kids so they can go to college, but we just can’t figure out how to keep working without going crazy with the monster not-enough-hours-in-the-day problem. How do you manage your work responsibilities around your children? Do children suck out every ounce of interest in the outside world for you? Do you regret putting your tykes in day care? Do bad things happen to kids there? If you are a stay-at-home mom or dad, are you totally exhausted all the time? Is it worth it to have kids at all? Thank you!

    • ANSWER:
      My daughter has been in daycare since 6 weeks and has flourished there!

      As for your other worries – relax – it will work out…I had a million questions and concerns and my Aunts told me the same thing – it’ll work out…you just have to be flexible and patient.

      When she was little – under 2 – it was more hectic and tiring but once she hit about that 2 mark everything seemed to even out and our normal routines ensued.

      You sound like a planner (like me) and unfortunately there is only so much planning you can do when it comes to kids. This is one area of your life where you will learn that all the planning in the world can mean zip, zero, nada at the end of the day…be prepared to be flexible.

      Good luck!

15. QUESTION:
    How should I allocate my 401k?
    23 years to retirement. I consider my risk tolerance moderate. These are my 401k options:
    SPECIALTY
    IARAX AIM REal Estate–loads
    HBGHX Hartford Global Health HLS–no load
    IGNYX Ivy Global Natural Resources–no load
    MURRX MFS Utilities–no load

    INTERNATIONAL
    AWPAX AllianceBernstein Inl Grw–loads
    RERCX AF EuroPacific Grth–no load
    TEDMX Templeton DevMktTrust–loads

    SMALL CAP
    LSBAX Lord Abbett SC Blend–loads

    MID CAP
    GCMAX Goldman Sachs MidCap–loads
    THCRX Thornburg Core Growth–no load
    SSVSX Victory Special Value–loads

    LARGE CAP
    RAFCX AF AMCAP–no load
    NYVTX Davis NY VEnture–loads
    EHSTX Eaton Vance LC Value–loads
    JARTX Janus Advisor Forty–no load

    ASSET ALLOCATION/BALANCED
    RAYOX LifePath2030
    IUAAX Van Kampen Equity

    BOND
    Hartford Total Return Bond HLS
    Pioneer Strategic Inc PSRAX

    STABLE VALUE/MONEY MARKET
    SEI STable Asset

    Should I put most in the SEI Stable Asset to protect the money? Its 10 year average total return is only 3.41%
    These are my ONLY options in the 401k.

    • ANSWER:
      You are facing one of the reoccurring problems with 401k account–a lack of suitable choices.

      AWPAX is not a bad choice and neither is RERCX. Either would be ok for about 25% of your allocation. The 1st is more risky than the 2nd. Might consider a 50-50 split for the 25%

      The large cap should be your core holding although I am not particularly excited about the offerings.

      EHSTX maybe 25 to 50%.

      JARTX is somewhat risky in my opinion but it does have a decent record. Maybe 20% if you do not mind the potential risk. I certainly would not consider more than 20%.

      Although RAFCX does not have a better than average record, it is worth consideration

      LSBAX 15% not a bad choice

      The midcap choices are not too my liking although Moringstar rates SSVSX as 4 star. It ytd performance is very poor. Maybe it is a bargain now. I don’t know.

      THCRX is sort of in the same boat but its ytd performance is even worse.

      I don’t know what to tell you on these. I would avoid them for now and allocat the rest of the portfolio into the money market for lack of a better choice.

16. QUESTION:
    My 401k amount? Do I have too little?
    I’m speaking of my balance prior to the stock market crash, at the age of 30 I had 20,000 in it. Since the age of 24 I contributed 5% of my pay along with my company match. I would have contributed more, but owning a home is a large goal of mine and I want to put a hefty down payment down, especially living outside Boston, homes are expensive, but a good investment.

    How am I doing? I keep looking at other websites, and they say the average person in their 20′s has ,000 in their retirement, I know this is a lie because most people in their 20′s don’t save for retirement.

    • ANSWER:
      If you want to invest successfully you are going to need to take two actions. Start as soon as possible and invest wisely. Forty years of investing 0 dollars will net you 6 if you invest it at 3% or ,872 if invested at 16% which some mutual funds have done. The difference is investing wisely!

      You are investing the money and that is very good. Do not worry about the decline take it as a opportunity to buy more on sale. Five percent of your money is pretty good. With the company match you are doing even better. At this point in your life the way you invest your money is just as if not more important than how much you invest.

      A home is a very good investment. If you rent all you have is a pile of receipts.

      Assume back in late 1974 you had placed ,000 in the Royce Pennsylvania Mutual Fund, Symbol PENNX it would be worth about a quarter of a million today. By adding just 1 dollar a week for the next eight years and the value today would be over one half million! If you had placed the same money in a single stock such as General Motors your investment would be worthless assuming you reinvested the dividends in General motors stock. The same can be said for a host of bad investments.

17. QUESTION:
    If mutual funds make people money, who loses money?
    401k’s, Roth IRA’s, mutual funds, CD’s … we’ve all heard it. They make people money via growth and interest. You make money and the fund managers make money by investing your money.

    The question is, in this world of checks and balances, if on average, you and your fund managers are making money, who is losing money?

    • ANSWER:

18. QUESTION:
    What would be a smart Investment/ Retirement move?
    What would be a smart Investment/ Retirement move?
    What would be a smart Investment/ Retirement move?
    I got fired from a job about 3 years ago. I looked at my 401k… It went from 4 to5k to 10k in the past few years. I find it very profitable, but what am I doing wrong? I know I probably should not keep my invested money with a company that fired me?? My 401k is with Nationwide. Profile below:

    Account SummaryMy Profile
    My Balance
    Account Balance as of 7/1/2011
    ,352.80

    View All Recent Transactions
    Effective Date Transaction Amount
    12/04/2009 Contribution 0.00
    11/06/2009 Contribution 0.00
    10/06/2009 Contribution 0.00
    ..Balance DetailRate of ReturnMy FundsMy Funds – ChartBalance Detail Total Variable Options: ,352.80
    Total Account Value:
    as of 7/1/2011 ,352.80
    Exchange and Restructure Detail
    Transfers Completed Current Year to Date: 0
    Transfers Completed Since Beginning of Prior Quarter within the current Calendar Year: 0

    Personal Rate of Return as of 05/31/2011
    Choose a market index: — Select — Barclays US Aggregate Bond TR USD Citigroup Treasury Bill 3 Month USD Citigroup USBIG Government/Corporate 1-3 Year Dow Jones US Total Full Cap TR USD MSCI EAFE ID Russell 2000 TR USD S&P 500 TR S&P MidCap 400/Citi Growth TR
    Year To Date 1 Year 3 Year 5 Year Since
    04/13/2007
    Average Annual Return
    your account To learn more about personal rate of return, read the FAQs and view an interactive demo.
    market index

    My Funds
    Other View Options: Source then fund Fund then source Fund only

    Investment Option Percentage of
    Account Value # of Units Unit Value Fund Value
    Invsco RealEst A 1.37 55.917500 2.545370 2.33
    Opp Devl Mkt A 72.65 1435.265300 5.240318 ,521.25
    Prudntl Jnisn Natrl Rsrc A 25.98 582.780600 4.614461 ,689.22

    • ANSWER:

19. QUESTION:
    Financial Help Needed: What is the best source to pay off 2 large bills?
    I have a real estate tax bill and a VIsa bill due. The bulk of the Visa charges were for property maintenance; thus, the charges are unavoidable. I usually pay the full Visa balance each month to avoid the 13.9% finance charge.
    My cash accounts are running low. Here are my options – please make the best recommendation or if there is anything else I can do. Any option will cover the debt:
    1. Use my primary home’s Home Equity Line Of Credit – Variable Interest Rate currently set at 6.49%. Tax Deductible.
    2. Cash out Savings Bonds. Interest is taxable by IRS. Earnings average 4% a year.
    3. Cash out a small portion of my 401K.
    4. Use portions of the above to pay off the tax and part of the visa bill – keep an open visa balance.

    • ANSWER:
      I vote for option 1. You pay off the debts and the interest is tax deductible.

20. QUESTION:
    Rate my financial situation?
    I’m 28 years old working professional and I am at a point in my life where I need some feedback on my financial situation…please advise.

    I currently own 2 properties. First property is a 1 bedroom / 1 bath condo which is being rented out to my relatives who are essentially paying my mortgage. I have about 10 years left on that mortgage (5.5% 15 years fixed mortgage). I just bought my second property which is a 3 bedroom 2.5 bath townhouse. I live in the townhouse and the monthly mortgage payment is 5 a month (plus 0 for utilities). I am also getting a room mate who will pay 5 a month including util. So technically my monthly payment with utilities will be around 0 a month. I plan on paying this house off in 2 years. The mortgage balance is only 1,600 with a 30 yr fixed 4.5%.

    I have approximately ,000 in high yield interest Ally savings account currently.

    I have over ,000 vested in 401k

    I have no credit cards bill…I pay off every month on time. Never late once.

    My credit score is 800

    Paid off all my student loans years ago and paid off my BMW X3 SUV already.

    Additional Details

    The ,000 in high yield interest savings account is my “emergency” fund money. I am told to keep a nice chunk for the “unknown”. Plus I own 2 properties so I don’t know when I would need to tap into that. I’m saving or adding an average of ,000-,000 a month into the account. My goal is by the end of 2011, I’ll have at least 0,000 in my savings account.

    • ANSWER:
      B -

21. QUESTION:
    Where should I put my money? Savings for new car or pay down debt?
    I just wanted to get some advice on what would be the best place to put my money while I’m both paying down credit card debt and saving for a new car. I am currently driving a 1996 Toyota Camry with 173,000 miles in. The car still runs well, but with how old it is I’m worried I might be on the market for a new car fairly soon. I also have about 00 in credit card debt split between 2 cards, with about 0 on the higher interest rate card (22% APR) and 0 on the lower interest rate card (17% APR).

    I make about ,000/month (after tax and 401K Contributions). Currently I put 0 in my savings account every month (with the intention of eventually using it on a down payment for a car) and use 0 to pay down my credit cards (I typically pay 0 on the high interest rate card and on the lower interest rate card, eventually hoping to pay 0 on the lower rate card once the higher card is completely paid off). I try not to use my credit cards throughout the month, but sometimes I end up having to use the higher interest rate one in emergencies (but I intend to stop doing that).

    I currently have 00 in savings for my down payment. When I need to buy a car, I will be on the market for a used car that is 000 or less. My credit is average but I will have a co-signer as I’ve never had a car loan before.

    I’m basically wondering if there is a better way to do this. I know that my credit card debt needs to be paid down, but I don’t want to risk not having any money in savings for a down payment and having my car die on me. I also don’t want to have a hard time getting an auto loan because of my credit card debt. Plus, I know I’m just throwing money away on interest each month I carry a balance.

    I’m also really worried about taking on the burden of an auto loan as I basically live paycheck to paycheck after bills, savings, and credit card payments. Once I have a car that I’m not worried about, I will probably have to ease up on how much money I put into savings each month in order to afford to auto loan (if my credit cards are not completely paid off yet).

    Any advice is appreciated. I’ve discussed this issue with friends and family before and have heard arguments for both sides. Just wondering what strangers think.

    Thanks!
    Thanks for all the answers. To answer some questions: I make ,000/ year but after Tax and 401 K Contributions my take home is about 00/month (Plus 2 “Bonus Paychecks” of 00 per year). The reason I am budgeting for an ,000 used car instead of a cheaper one more has to do with the safety and life expectancy of the vehicle than aesthetics. If I buy a ,500 car, I’ll most likely need to start saving immediately for the car I’m going to buy when THAT one dies. A fairly late model used car will mostly likely have more life left in it, life that will extend beyond my auto loan (especially if I stick with Toyota…which I intend to).

    I appreciate all the advice and I think I will begin paying more down on my credit card and easing up on the savings. I’ve heard of many Camry’s getting up to 200k miles so if I can keep saving for that long, maybe I will be able to pay cash for my ,000 car in a couple years (knock on wood!).

    • ANSWER:
      If you’re paying your bills on time and are not at the max for your cards, your credit should be really good. Throw in a co-signer, and you should be able to get a car loan for under 10% easily. The link below can give you a range for your area.

      That said, your choice is between reducing risk (having a decent down payment for a car that you might need) and reducing a known problem. Let’s crunch some real numbers:

      Eight months of continuing the current path:
      Car savings: + ,500
      - 22% CC: Just paid off: 8 mo interest = 0ish(?); 130*8 = ,040
      - 17% CC: Still a balance: 0 + any interest – call it to round things out.
      NET: 3,250

      Use current savings to pay off debt, then add 0/mo to savings. Eight months later:
      Car savings: 0 + (8 * 0) = NET ,400

      So, in eight months, you’ll have more in savings. Until then, you won’t have as big a down payment for a car, but you’ll have better credit (lower balance), and you won’t be paying interest to someone else – you can keep it for yourself.

      Also, you may have some options if your car dies – can you carpool or take public transit? If you can do that now, it will stretch out the life of the car.

      Unless the car has immediate concerns, like a strange clunking noise, I’d pay off the credit cards.

      Good luck on keeping up the savings – an emergency fund really makes me feel safer – I just wish I could get it from 2 months to 6, myself. You can get a feel for how much it will cost a month in the second link – 10K for 36 months @ 6% interest came out to 4/month, while 8K was 3. I hope your car lasts!

22. QUESTION:
    Im leaning McCain right now, am I wrong?
    Ive been reading a lot about the two candidates and put down my reasons on why I would want to vote for them, I don’t really care about Gay marriage or Abortion because they don’t effect me and my family, below are the reason I would vote for each candidate and how these issues would effect me and my family either now or down the road.

    PRO McCain Reasons

    * He is going to double the Personal Tax Exemption for Dependents, so that means more money for us for my kid and any other child we have.
    * He is proposing that we build 45 new nuclear power plants, my company specializes in nuclear power plants and is the “Greener Way” to produce Electricity. Obama also has a similar approach but its not as aggressive.
    * I think our Commander and Chief of the Military should have some Military Experience.
    * McCain’s average tax breaks would benefit our total income bracket more than Obama’s, if we made less money Obama’s would benefit us more.
    * He is going to keep the Bush Tax rebate check that we received, I did think getting that check this year was pretty awesome.
    * He is in favor of implementing an act that will allow a employee to take 12 weeks of unpaid leave for family medical reasons without being penalized by their employer. Umm that’s pretty awesome. He also sponsored the Family Friendly Workplace Act which sought to allow employers to provide more flexible work schedules to help balance work and family.

    PRO OBAMA Reasons

    * His health care plan is a lot better, his plan guarantees affordable health care and it only raises the national debt slightly higher than McCain who only offers a ,000 tax credit. I currently have decent health care, but I think it could be better.
    * He is going to tax the rich more to fund Social Security. McCain is going to give the employer the option to invest or not. This is kind of a wash as it effecting me, but for people who don’t have any 401K’s its helpful.
    * He opposes the war in Iraq, but I’m not sure if we should pull out right now. Maybe this isn’t a “pro”
    * Better Illegal Immigration and will crack down on employers who hire illegal immigrants.

    BOTH PRO OR NOT
    * Both have a great environmental approach to reduce emissions and help the environment. McCain has a great plan that rewards auto makers to create environmental safe car batteries and safer emissions. The League of Conservation Voters has given Obama the highest lifetime rating of anyone currently running for president.
    * Education – McCain supports vouchers that favor private schools while Obama doesn’t, McCain voted against increasing federal student loans and Pell grants and expanding eligibility for financial aid. I support the voucher but not the vote against increased student loans.

    I decided to look and read about both of their pasts and found out that McCain is a pretty bad ass dude. He grew up as a Navy brat and bounced around like many of them did. He and his brothers and sisters followed in their fathers footsteps and joined the navy. He went to the Naval Academy, He butted heads with authorities and was popular among his classmates for doing so as well as not putting up with bullying. He ranked low in his class despite his high intelligence. He married a model with two children and adopted them, she got into a car accident and stayed with her for over 15 years before asking for a divorce. He was a career military man and I heard about him crashing in North Vietnam and being a prisoner of War and being tortured for almost 6 years, but didn’t know the extent of what really went on. The guy has more scars than Frankenstein and has been through everything you can possibly imagine. I now feel bad for making fun of the way he
    looks and his “robotic like” moves, the guy is lucky to be alive let alone stand up. He has received many of the highest achievements and awards the military offers. He has been on many House Committee’s and has alot more experience than Obama. He has made some mistakes in his past but has done more than enough to makeup for them. He is a guy who has a bad temper and doesn’t always go with the grain, that is why he is known as a “maverick” and probably the closest thing to a democratic republican. The dude is 71 years old and has either been through or seen everything.

    Obama early life is probably the exact opposite of the way McCain grew up. He lived in Hawaii most of his life going to public schools although he did live in Indonesia for 4 years from ages 6-10. He didn’t really know his Dad who was a foreigner from Kenya and his mother stayed in Indonesia with is step father, he was raised mostly by his grandparents. He admits to doing drugs like pot and cocaine back in the day and admits its his greatest moral failure. He moved to LA for college, transferred to Columbia, traveled, went to Law School and was your typical average young adult who strives and accomplished alot with out a successful family to back him up. He graduated law School, worked for

    • ANSWER:
      You seem to have done your research. If McCain fits you better, then vote for him. My situation leads me to Obama. Thank you for at least showing that someone can post a question without using some lame made up #^*% they saw somewhere else.

23. QUESTION:
    I feel like my fiance does not think realistically when it comes to our future and finances?
    Hello all,
    My fiance and I have been together for a year. I am very close with him and his mom and dad. We have a good relationship overall, but we are having problems with his career and balancing time/money. He is a manager at an oil change company. I guess he likes that type of work, but the position that he has requires him to be there 50 hours per week. His mom hates his job, because he works so much, make so little, and she thinks the fumes will cause cancer (she is old fashon). Here’s the deal. He makes about 700 gross, and after 0 child support, $$taxes, and 401k,etc he comes home with 291 every week which is not much. Recently he was going to purchase a car from an auction, so he borrowed k from his 401k, but we actually have been using the money to get by. We could not possibbly live off of 1 per week in Mass. I was working 40 hrs per week making just a tad bit less than he was, but my doctor put me out of work due to my pregnancy. I will be returning in June. I mean we both have goals. I am fed up with renting and really want a house. I mean I have a 3 year old, one on the way, and he has a 3 year old. We need a house, becasue this 2 bedroom townhouse won’t cut it! We know what we have to do as far as credit, and stuff to purchase a home. My only concern is his job, time, and money. I mean I will always have to be the bread-winner in the house to get somewhere with him. We went on cnnmoney.com to see how much we could afford and with his income and his child support (which I am aware he HAS to pay. NOT A PROBLEM FOR ME), it is so low. I have to work twice as hard, for us to get somewhere!Also, why would he take on a 50-60 hr position when he has a child on the way. I have so much pelvic pain, and I find myself having to run around all day without his help. I have no help from him, and definitely not financially. I think it’s worse because I have no energy you know? I mean he claims he is going to go to real estate school, but I told him that he needs to get a degree or take a couple of classes from a college/university (he is haitian and has a strong accent and gets the past and present tenses all mixed up) to sell real estate. He thinks that he is going to get rich, nice goal! I hope it all works ou for him, but in the meantime what are we supposed to do? I feel like, if you have a man, there is no reason to feel like a single mom! Also, I feel like he took that job to prove how good he is in sales, and to prove to the rest of the guys in the company that he could get it. Now he is responsible for all of these high school kids he works with, who don’t take their job seriously. Watch he probably won’t be around for my labor. When he comes home, he has to get on the job webstie and do work too. It’s like man he is going to work for average 55 hrs per week to come home with 1, and be too tired to help out!! His hours are like 7:30- 6:30, and weekends!Someone help!!(by the way I am ins chool now, and will be finishing up soon so that i don’t end up like this)
    ok idiot. This is not about me! I have a job I will be returning to. The question is how/why does he think we can aquire all of these assets with that little bit of money. I ahve a f/t job, and go to school. And having kids with different guys.Please..I had one, I’m engaged.Just had a question.Jerk. If you can’t give decent advice then get the hell off the net.REALLY!!My point was, I will be able to purchase a home, etc, but it would help if maybe he reconsidered going to school and getting a better job to get a better mortgage!!And his timimg at work.I was just wondering how do you convice him that his job sucks??His mom can’t, how can I..So please come correct and stop talking dumb. I think I realize what I shoul have, could have, or would have done. I am asking questions pertaining to the moment!Thank you

    • ANSWER:
      I hate to point out wha is obvious now – but do you think you might have wanted to figure this all out before you got pregnant to this guy?

      Money is not everything – bit its not realistic to think 291 a week can support a family.. I think real esate could be good for him – in like 10 years when the amrket bounces back – what do you do in the meantime. and why are you both having kids you cannot afford. you each alreayd have a three year old – are you guys kidding me?

      what is your question exactly.. he works his ass off to bring home little, its better than him NOT working at all. and yes, you are going to be like a single mom – should have thought about that – because the more babies you have with different guys – the less self esteem you will have to find and settle with a decent guy… really..

      I would go to coabode.com and look for another single mom who has a home you can rent off of her and help one another – meantime, tell loverboy to go get a degree and get a job.. he may find work at his university even and benefits are amazing there. Then reevaluate in a year or two.. or at least get yourself a good nest egg to provide for you and your kids..

24. QUESTION:
    What would be a smart Investment/ Retirement move?
    What would be a smart Investment/ Retirement move?
    I got fired from a job about 3 years ago. I looked at my 401k… It went from 4 to5k to 10k in the past few years. I find it very profitable, but what am I doing wrong? I know I probably should not keep my invested money with a company that fired me?? My 401k is with Nationwide. Profile below:

    Account SummaryMy Profile
    My Balance
    Account Balance as of 7/1/2011
    ,352.80

    View All Recent Transactions
    Effective Date Transaction Amount
    12/04/2009 Contribution 0.00
    11/06/2009 Contribution 0.00
    10/06/2009 Contribution 0.00
    ..Balance DetailRate of ReturnMy FundsMy Funds – ChartBalance Detail Total Variable Options: ,352.80
    Total Account Value:
    as of 7/1/2011 ,352.80
    Exchange and Restructure Detail
    Transfers Completed Current Year to Date: 0
    Transfers Completed Since Beginning of Prior Quarter within the current Calendar Year: 0

    Personal Rate of Return as of 05/31/2011
    Choose a market index: — Select — Barclays US Aggregate Bond TR USD Citigroup Treasury Bill 3 Month USD Citigroup USBIG Government/Corporate 1-3 Year Dow Jones US Total Full Cap TR USD MSCI EAFE ID Russell 2000 TR USD S&P 500 TR S&P MidCap 400/Citi Growth TR
    Year To Date 1 Year 3 Year 5 Year Since
    04/13/2007
    Average Annual Return
    your account To learn more about personal rate of return, read the FAQs and view an interactive demo.
    market index

    My Funds
    Other View Options: Source then fund Fund then source Fund only

    Investment Option Percentage of
    Account Value # of Units Unit Value Fund Value
    Invsco RealEst A 1.37 55.917500 2.545370 2.33
    Opp Devl Mkt A 72.65 1435.265300 5.240318 ,521.25
    Prudntl Jnisn Natrl Rsrc A 25.98 582.780600 4.614461 ,689.22

    • ANSWER: