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- Feb 19, 2005
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Can someone explain profit sharing to me? Is profit sharing something you contribute to like a 401k or is it just a bonus? Is it automatic or do you have to sign up usually?
And if you have any thoughts on 401k's please share them too. I'm 23 and don't want to start a 401k. Some people would say now is the best time to start but there are reasons I don't like 401k's. From what I understand, if I start a 401k I can't touch that money for like 40 years which would be when I retire. If I touch it early I would get a penalty. And that is assuming my money is still in the 401k 40 years from now. Social Security is looking 50/50 these days.
I would rather put my savings into things I can turn over every 5 or 10 years.
And if you have any thoughts on 401k's please share them too. I'm 23 and don't want to start a 401k. Some people would say now is the best time to start but there are reasons I don't like 401k's. From what I understand, if I start a 401k I can't touch that money for like 40 years which would be when I retire. If I touch it early I would get a penalty. And that is assuming my money is still in the 401k 40 years from now. Social Security is looking 50/50 these days.
I would rather put my savings into things I can turn over every 5 or 10 years.