Please explain 401k?

I know They are fanatical about it. Thats why i chose that company. I'm betting China continues is good momentum and Asians love their games.

That company ownes the game that has like 95% of the esports market cornered right now. American and European gaming teams never win against the Asians, ever on that game. They take the world cup every year almost. Last year the championship was held in china in a massive stadium larger than any super bowl stadium ive ever seen.

 

Same with drone technology; most advanced in the world.

 

Does that mean that they will not give it to you unless you stay with them until you retire, or they give it to you with no possible clawbacks the day they cut your check?

It's nice to assume the former, but read the small print, or have an accountant to it for you. If you have to stay with them until you retire, you might never see that money - all they have to do is go out of business before you retire.

 

China builds entertainment malls, like the US builds shopping malls.

 

This is a critically good point. Your 401k should not 100% directly invest back into the company you work for. That is dangerous. Very Dangerous. If you like the company, and are young with time to earn money and take risks, then putting maybe up to 25% into a company that you really think is doing a good job might be acceptable.

But remember that the CEO or owner might die in a wreck tomorrow, leaving the company to an idiot relative or a gaggle of ####### with no idea what they are doing. Various types of index funds run by companies with proven track records are the best choice for most of us.

 

Similar experience here, company moved to Korea, 150+ employee's jobs and 401k gone...

 

Best advice.

Warning - most 401k depend on the stock market and the stock market is a place for gambling. It is not an investment place for retirement because you can lose everything in one bad day.

 

Many drivers are skeptical of rental property because of being on the road so much. The real estate agent can manage it or knows a company that will. It's worth it to pay a small fee for someone else to collect the rent, screen the renters, take care of the rental agreement, arrange maintenance when needed.
If one lives to be 100, that real estate will still be there.

 

1. The amount you put into your 401k is not taxed, so no income tax is deducted from your contribution.
This is the one and only tax loophole the middle class can participate in. Your earnings from both you and your employer contributions in the 401k are not taxed, until you draw the funds out at retirement.
Versus if you have $100 deducted from your paycheck to put into a savings account, you have to earn $125, less taxes, to have a net of $100 to go into your savings account.

2. The general rule of thumb is to save 10% of your earnings for retirement, counting both your and employer contribution.

3. Always contribute enough of your pay to get the full employer match, otherwise you are leaving free money on the table.

4. You state employer will match 100% of the first 3% you put in. So you put in 3% and they put in 3% of your pay, so that is 6% of your pay going in.

5. The rest of the formula you state is 75% of 1%, which is .75 %, plus the 3% employer amount = 3.75%, not the 4% you stated. I dont know how you came up with 4%.

 

No vesting period can mean 100% vesting on all employer contributions. The OP needs to verify with the plan info.