The Federal Reserve seems to be done with its aggressive interest rate hikes, economists say. That could turbocharge stocks and your 401(k).

News this week that inflation eased more than expected in October solidified the view that the Federal Reserve is done with its most aggressive rate-hike campaign in four decades.

And that could be a boon for the stock market and your 401(k).

  • BombOmOm@lemmy.worldEnglish
    114·
    1 year ago

    You are not forced to buy stocks in a 401(k), but most people chose to as it has significant tax advantages over owning them outside of a retirement account. Rich people would LOVE to own more in the same way and pay less taxes.

      • BombOmOm@lemmy.worldEnglish
        34·
        1 year ago

        There is an annual contribution limit of $6,500 into a Roth IRA. They are something I have and are something you should have too. Invest the money in a total stock market fund and it will help you greatly when you retire.

        The reason he has so fucking much money in his is because he literally gambled the money in the account. Someone is always going to win the lottery.

        • bloup@lemmy.sdf.org
          7·
          1 year ago

          Uh not really… he started PayPal and then sold himself like 1 million shares at $0.001 (a tenth of a penny!) a share. Did you even read the article? Literally anyone who starts a business has to inject capital. It’s not gambling any more than any other person simply starting a business.

          Also if you do read the article. You will learn it is not just Peter thiel, but many many many wealthy individuals who have done similar things. You say “the ultra wealthy would love to have Roth IRAs!” Well guess what: they do and it’s often a substantial portion of their fortune.

          So what is your point now?

          • BombOmOm@lemmy.worldEnglish
            34·
            1 year ago

            He did that in 1999 when PayPal was still X.com, something almost nobody has heard of, and it was not clear if the company would make it. As I said, he gambled his money and he won the lottery. Someone is always going to win the lottery.

            • bloup@lemmy.sdf.org
              65·
              1 year ago

              You say in your original comment to me “the ultra wealthy would love to benefit from Roth IRAs!” Well guess what: they do and it’s often a substantial portion of their fortune.

              So what is your point now?

        • AlecSadler@lemmy.worldEnglish
          31·
          1 year ago

          You can get around limits with strategies like backdoor Roth IRA, also in some cases if you are the owner of the company you can have the company make distributions / contributions for you that go beyond the normal limits as well.

          Ultimately, it is very much geared to benefit those that already have.