You got questions?
Why is it called a 401(k)?
Because your goal is to get to $401,000. That is not true, but it is a good goal. The name has to do with some legal mumbo jumbo in the law, like 12b-1 fees. It is almost like lawyers and big bosses tried to make a system only top executives would understand and benefit from.
Does my boss want me to use the 401(k)?
No. Your boss doesn’t want to match your contribution. A real stingy boss won’t even elect to make contributions. That said, your boss will know you are smart and have your $hit together when you use the plan and shake big boss down for a free raise every year by way of the company match.
When did 401(k)s come into play?
The history goes way back to laws of the 1970s called ERISA, but the first modern 401(k) came into being in 1982. Therefore the 1980s were rad.
I don’t have a 401(k) what do I do – retire broke?
No. Everybody can use an IRA. It doesn’t have a match but has some other advantages over a 401(k) – notably lower fee fund options. Turbo 401(k) can help you with this. Sign up for emails and we will eventually send you info on how to get going without a 401(k). You are disadvantaged but can still
What investment choices should I make in my plan?
The cheapest ones. Not the hottest performers. That goes against all intuition. The best athletes are paid the most and did the best in the past. You’ve read about billionaire hedge fund managers. Who would want to manage a low fee fund but a low-grade manager? Wrong. Past performance is not correlated with future returns. Low fees are. We’ll help you from there just show us your investment choices in your plan by turbocharging your 401(k)!
I’m 50 how am I ever going to hit your $401,000 goal I barely started in my 401(k)?
Did you know you can park even more in a 401(k) after 50? It is called a catch-up contribution. With this boon and what, 17 years till retirement you can likely hit this number but you will have to save a little more each year than somebody 30 – on the plus side you probably make more.
How is a 401(k) worse and better than a pension?
Better in some ways, worse in others.
With a pension you don’t have to do anything but show up for work for enough years to qualify. With a 401(k) you don’t get a thin dime unless you take action.
A pension is all match meaning your Boss puts money in it (hopefully – many don’t and we have underfunded Pensions) and you get that money when you retire. With a 401(k) the Boss matches your contributions to a point and the IRS allows you to contribute even more, pre-tax. After working for decades a 401(k) can be worth over a million – or zero if you never contributed.
A pension typically dies with you and your spouse. A 401(k) is an asset you own and can pass on and do as you please with.
How does it work?
You put pre-tax dollars in the plan directly from your paycheck BEFORE most taxes – your employer usually matches some of these dollars with Boss money. You choose some investments to put you + Boss money
What does Turbo 401(k) do?
Besides general awesomeness Turbo 401(k) gives solid 401(k) specific help unlike the gag-me-with-a-spoon financial media + blogs that says stupid crap like 401(k)s suck and don’t enjoy a latte or avocado toast if you want to avoid elder poverty.
How do you make money?
We steal small amounts of money from everybody’s account – so small you won’t notice but multiplied by millions of accounts should be quite lucrative. Have you seen the Super Man with Richard Pryor? No? Maybe Office Space? Like that. Just kidding.
How do we know the 401(k) is such a good deal?
It is so good a deal the Government is considering cutting it back because it costs too much in lost tax revenues.
Why Turbo?
The Turbocharger was popularized in the 1980s when the 401(k) came to life and has recently grown in popularity. It allows a small displacement engine to deliver the power of a larger, more expensive, and less fuel-efficient engine. Turbo 401(k) exists to turbocharge your small 401(k) by lowering the weight of fees and using intelligent design to create the most power grow your account.
Who is Max Turbo?
We’d rather not say.