Archived 401k worth it?

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pinktea

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So I'm 27, going on 28. I've been working part-time since I was 19, but never thought about saving for retirement until recently. Now that I'm back with Spot, I'm wondering if it makes sense to set up a 401k. I've graduated college without debt, and now I'm working on my "life".

Here's the catch though...I don't think I'll be with Spot very long (a year or less), and I might not stay in the States after that. I'm thinking of studying abroad for a few years. Eventually I do see myself back in the States for the long-term, but for the next 2-5 years, I have no idea.

So with that in mind, knowing that there will likely be a gap in my employment, does it make sense to start a 401k, or would I just lose it/be penalized when I stop working in the States for a little while? I'm not sure how it all works; I'm still young and I haven't thought much about this before, lol.
 
Start your 401K now.
Graduating without debt is the ideal time to do it.
You can contribute while you're working at spot & they'll match up to 5%.
If you leave spot, you can roll it over to your own financial institution without penalty.
Even if you don't contribute at times, it'll still draw interest.
 
By financial institution, do you mean my bank? (I'm currently with a large national banking institution).
 
Yes.
If you leave spot you can roll it over to your bank or leave it with spot & just log on to manage the financial mix.
 
Ah, gotcha. Thank you! That is very helpful.

Making me feel not so young anymore when I realize that I have to start considering things like insurance and retirement now, haha.
 
Do it because... why not? If you have an opportunity to have a 401K with corporate matching, that is a good thing. You never know how long you'll actually be with Target but saving money (and putting it somewhere you can't easily access) is never a bad thing.
 
pinktea said:
So I'm 27, going on 28. I've been working part-time since I was 19, but never thought about saving for retirement until recently. Now that I'm back with Spot, I'm wondering if it makes sense to set up a 401k. I've graduated college without debt, and now I'm working on my "life".

Here's the catch though...I don't think I'll be with Spot very long (a year or less), and I might not stay in the States after that. I'm thinking of studying abroad for a few years. Eventually I do see myself back in the States for the long-term, but for the next 2-5 years, I have no idea.

So with that in mind, knowing that there will likely be a gap in my employment, does it make sense to start a 401k, or would I just lose it/be penalized when I stop working in the States for a little while? I'm not sure how it all works; I'm still young and I haven't thought much about this before, lol.
Click to expand...
Just stop kidding yourself, you are not young. What are you “thinking “ of “studying” abroad? Unemployment?You shouldve done that when you were young. Stop this pipe dreaming and be realistic. Going “abroad to study” pfffft that’s something someone in high school says. So here it is again.
1. You are not “still” young.
2. You are not going “abroad”
3. You are not “studying” abroad
4. Send us a postcard , will you.
 
Target will match your contribution up to 5% of your pay, so it's just free money.

If you leave Target, there will be a grace period before you have to either withdraw it (at a massive penalty) or roll it over to another 401k plan.
 
Absolutely! Sign up NOW!!!!

You can let the money stay at a financial institution or
brokerage firm. Rule of thumb is to save a minimum of 10% of your income for retirement beginning in your early 20's.
 
Planosss said:
Just stop kidding yourself, you are not young. What are you “thinking “ of “studying” abroad? Unemployment?You shouldve done that when you were young. Stop this pipe dreaming and be realistic. Going “abroad to study” pfffft that’s something someone in high school says. So here it is again.
1. You are not “still” young.
2. You are not going “abroad”
3. You are not “studying” abroad
4. Send us a postcard , will you.
Click to expand...
Wow how rude. Maybe she wants to get an advanced degree abroad...no one needs your judgement
 
SmilesWI said:
Wow how rude. Maybe she wants to get an advanced degree abroad...no one needs your judgement
Click to expand...

Translation: I don't like (negative) judgement. I'll gladly deep throat some positive judgment though.

While crude, he has a point. The OP is not exactly "young." They're well into adulthood, and being so flippant about retirement is pretty irresponsible.
 
Planosss said:
Just stop kidding yourself, you are not young. What are you “thinking “ of “studying” abroad? Unemployment?You shouldve done that when you were young. Stop this pipe dreaming and be realistic. Going “abroad to study” pfffft that’s something someone in high school says. So here it is again.
1. You are not “still” young.
2. You are not going “abroad”
3. You are not “studying” abroad
4. Send us a postcard , will you.
Click to expand...
Actually, it's better to do things like this now because:
1. You've finished school.
2. You're debt-free.
3. No spouse or kids to consider.
4. The world is your oyster & you discover new perspectives when in different environs.
But DO set up the 401K first.
 
Last edited:
redeye58 said:
Actually, it's better to do things like this now because:
1. You've finished school.
2. You're debt-free.
3. No spouse or kids to consider.
4. The world is your oyster & you discover new perspectives when in different environs.
But DO set up the 41K first.
Click to expand...
Yeah because the 40k is lame
 
haha thanks guys. I will definitely take all fantastic advice into consideration.
 
Thanks. :p Seriously though, was I actually supposed to take your post at face value? Because you clearly made a lot of incorrect assumptions about my life and situation, but it's okay; I really don't care. I've lived and worked in Asia for three years and I have an opportunity to get my MBA there, as well as do language study on a scholarship...unlike a lot of people on this site, I don't intend on staying with Spot (or necessarily in retail) forever.
 
pinktea said:
Thanks. :p Seriously though, was I actually supposed to take your post at face value? Because you clearly made a lot of incorrect assumptions about my life and situation, but it's okay; I really don't care. I've lived and worked in Asia for three years and I have an opportunity to get my MBA there, as well as do language study on a scholarship...unlike a lot of people on this site, I don't intend on staying with Spot (or necessarily in retail) forever.
Click to expand...
Regardless of your intentions long term , yes it’s worth it . Target matches 5% of what you put in so if you don’t oarticipate your basically leaving free money on the table
 
It's free money.

Don't do it if you have a problem receiving free money.
 
Kartman said:
It's free money.

Don't do it if you have a problem receiving free money.
Click to expand...
I never heard of a person having a problem with free money, haha! My issue was that I didn't understand how it worked when you stopped your employment; if you got penalized or anything. Now that I know it doesn't, I really see the value.
 
I started out at 5% and the past year upped it to 8% I’m already close to 20k in around 4 yrs avg so far this year at 12.4% return
 
I just recently started it even though I don't plan on being at target a long time from now. But I do wish I started it back when I first started about 4 years ago.

I had no clue about it and certainly that target doesn't match 5%. It would be a nice thing for them to tell you during the hiring process
 
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