I have a buddy that does it, has it maxed out by end of March each year. Not a fan of that approach but I understand why people do it.
Retirement Targets
- Thread starter yowza
- Start date
I front load my HSA, but I suppose that is mostly to replace what I have used from the prior year, and because it is the top savings priority based on taxes.
I do a front loading of sorts in my 401k if the market tanks. iow, market tanks == crank up the contribution percentage to a painfull amount. As you mentioned, you have to be careful to to run yourself out of matching money.
I wish companies would honor that match regardless of the month the contributions happen.
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I finally signed up for our company's 401K. I am kind of nervous because I've never run that far before.
They want to get their money in in case they lose their job.
You maximize your earning potential. I put the full amount in my Roth in January. So that full amount works all year.
By doing this aren't you technically maximizing your losing potential as well during a down period? I guess my thought process is by spreading out deposits I might miss out on some gain but I also protect myself a little more from massive loss by averaging my costs as the market drops.
Yeah I would think consistent investments throughout the year would minimize risk. If you front loaded your 401k this year you would have lost a lot of money
This year you might be down $1500 or so on a maxed out 401k but if you had done it for the past 20 years I bet you would be ahead at least 30x that amount.
I'm only 30 so a lot could change. But my eye has always been on 55. I assume by then jealthcare will be drastically reformed which is the main crux holding my parents from retiring tomorrow. Almost maxed out my 401k contributions this year and will max it going forward on top of maxing a Roth IRA and stock purchase plan with Oracle that gets a 5% discount. Should have gone all in DOGE so I could be retired now instead of the few grand I made when it peaked around $.70
The ghost of 30 year old KnappShack says, "Yes. A lot could and will change in 25 years.."
Rattles chains....oooOOOOooooo
Correct. Past data, at least, shows that time in the market trumps timing the market.
There's lots of studies comparing best day vs worst day investing in a given week/month/year. The magnitude of difference (ie risk you're mitigating by dollar cost averaging) is minimal. It doesn't even compare to the upside of maximizing your investment as soon as possible and riding a huge upward wave that we've been riding the past 13-ish years.
No and don't plan to have kids. Perfectly happy playing the funcle role. Albeit another piece to the alot could change.
I figured that by the optimism in your post, you haven't been beaten down like the rest of us married with children dads, then throw in the fact that you are investing very well and it lead me to believe that also.
