New 401(k) "Save the Max" Calculator

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fcirullo
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New 401(k) "Save the Max" Calculator

Post by fcirullo »

New 401(k) "Save the Max" Calculator
Use FINRA's new 401(k) calculator to maximize your contributions in 2013.

http://apps.finra.org/calcs/1/max401k

About the Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA's mission is to protect America's investors by making sure the securities industry operates fairly and honestly.
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BuckyBadger
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Re: New 401(k) "Save the Max" Calculator

Post by BuckyBadger »

$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx

I'm not going to lie -- it never occured to me to use an online calculator for that...
porcupine
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Re: New 401(k) "Save the Max" Calculator

Post by porcupine »

BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx

I'm not going to lie -- it never occured to me to use an online calculator for that...
+1.

OP, that is a neat one. It will come in handy at the end of November or so for me. :D

- Porcupine
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slug
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Re: New 401(k) "Save the Max" Calculator

Post by slug »

Yeah, I just do it in Excel or on a calculator, but it's nice to have another option if needed.
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Beantown85
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Re: New 401(k) "Save the Max" Calculator

Post by Beantown85 »

If they had a section to put in gross salary, and would calculate the % you should be contributing based on contributions to date, I would think that would be a bit more useful, and not terribly difficult to add to the calculator.
Grt2bOutdoors
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Re: New 401(k) "Save the Max" Calculator

Post by Grt2bOutdoors »

Beantown85 wrote:If they had a section to put in gross salary, and would calculate the % you should be contributing based on contributions to date, I would think that would be a bit more useful, and not terribly difficult to add to the calculator.
Think about it - before anything gets placed on it's website, it is run by the attorneys and compliance. They do not want to get sued for providing advice. Instead, they can claim they were merely aiding the public in making their own calculations. You would be amazed how many people do not know basic math skills, I won't comment on English speaking skills.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
NYBoglehead
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Re: New 401(k) "Save the Max" Calculator

Post by NYBoglehead »

Grt2bOutdoors wrote:
Beantown85 wrote:If they had a section to put in gross salary, and would calculate the % you should be contributing based on contributions to date, I would think that would be a bit more useful, and not terribly difficult to add to the calculator.
Think about it - before anything gets placed on it's website, it is run by the attorneys and compliance. They do not want to get sued for providing advice. Instead, they can claim they were merely aiding the public in making their own calculations. You would be amazed how many people do not know basic math skills, I won't comment on English speaking skills.
+1

Common sense is not a common virtue.

Look at all the people that do the whole "tax return pre-payments" from H&R Block et al...they are giving up 10% of their return to get the money what, a month early? The tax prepper gets an enormous return on this pre-payment and people think it is a good deal.

A lot of people also equate any sort of tax return with "I didn't have to pay any taxes this year" and fail to recognize that they just gave the government an interest free loan for the year.

If things like this were that glaringly obvious to the majority of Americans we'd all be in much better financial shape. Some people need the calculator so that they can be smacked in the face with the information. And as to basic math skills...not so basic to a lot of people.
Beantown85
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Re: New 401(k) "Save the Max" Calculator

Post by Beantown85 »

NYBoglehead wrote:Common sense is not a common virtue.

Look at all the people that do the whole "tax return pre-payments" from H&R Block et al...they are giving up 10% of their return to get the money what, a month early? The tax prepper gets an enormous return on this pre-payment and people think it is a good deal.

A lot of people also equate any sort of tax return with "I didn't have to pay any taxes this year" and fail to recognize that they just gave the government an interest free loan for the year.

If things like this were that glaringly obvious to the majority of Americans we'd all be in much better financial shape. Some people need the calculator so that they can be smacked in the face with the information. And as to basic math skills...not so basic to a lot of people.
While I agree with this in general, are these the same people who are trying to calculate how to MAX their 401k contributions? I'm thinking that the "average" person who is interested in maxing his/her 401k is a bit above that level.
Grt2bOutdoors
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Re: New 401(k) "Save the Max" Calculator

Post by Grt2bOutdoors »

Beantown85 wrote:
NYBoglehead wrote:Common sense is not a common virtue.

Look at all the people that do the whole "tax return pre-payments" from H&R Block et al...they are giving up 10% of their return to get the money what, a month early? The tax prepper gets an enormous return on this pre-payment and people think it is a good deal.

A lot of people also equate any sort of tax return with "I didn't have to pay any taxes this year" and fail to recognize that they just gave the government an interest free loan for the year.

If things like this were that glaringly obvious to the majority of Americans we'd all be in much better financial shape. Some people need the calculator so that they can be smacked in the face with the information. And as to basic math skills...not so basic to a lot of people.
While I agree with this in general, are these the same people who are trying to calculate how to MAX their 401k contributions? I'm thinking that the "average" person who is interested in maxing his/her 401k is a bit above that level.
The average person interested in maxing his/her 401 contribution or who even expresses an interest in learning more about retirement planning will a)know 4th grade algebra including how to divide, b)know where the library or bookstore is, c)have access to and know how to use the internet, d)be a saver and own a bank account, e)be able to read. I say this not to be condescending but to highlight that those who use the FINRA calculator will instinctively know how to get to the FINRA website and who that organization is - that requires several of those skills highlighted above. The average wage earner is trying to figure out how to make it day to day or week to week or month to month - they are not pre-planning for when they have a little bit of breathing room. I say this from my experience with colleagues and friends. I must have been the exception, I was pre-planning before even having a job but then I didn't want to emulate the behaviors of those around me.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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kenyan
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Re: New 401(k) "Save the Max" Calculator

Post by kenyan »

My calculation was pretty easy. I clicked the box that told my Benefits department to withhold the maximum each year.
Retirement investing is a marathon.
Beantown85
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Re: New 401(k) "Save the Max" Calculator

Post by Beantown85 »

Grt2bOutdoors wrote:The average person interested in maxing his/her 401 contribution or who even expresses an interest in learning more about retirement planning will a)know 4th grade algebra including how to divide, b)know where the library or bookstore is, c)have access to and know how to use the internet, d)be a saver and own a bank account, e)be able to read. I say this not to be condescending but to highlight that those who use the FINRA calculator will instinctively know how to get to the FINRA website and who that organization is - that requires several of those skills highlighted above. The average wage earner is trying to figure out how to make it day to day or week to week or month to month - they are not pre-planning for when they have a little bit of breathing room. I say this from my experience with colleagues and friends. I must have been the exception, I was pre-planning before even having a job but then I didn't want to emulate the behaviors of those around me.
Right. So you are saying that by definition, anyone who finds this calculator won't be interested in it, because it offers no features that simple division can't handle. Anyone who could be helped by a tool for simple division, won't find or want a calculator aimed at those aiming to max their 401k. That was my initial point, saying that if they included the salary % tool it could actually be helpful.
Quinn
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Re: New 401(k) "Save the Max" Calculator

Post by Quinn »

BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx

I'm not going to lie -- it never occured to me to use an online calculator for that...
$17500 / 26 = $673.07

Always good to doubel check.
gkaplan
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Re: New 401(k) "Save the Max" Calculator

Post by gkaplan »

17500/26=674

This is the rounded amount being taken out of my paycheck. The twenty-sixth paycheck amount will be adjusted accordingly.
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555
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Re: New 401(k) "Save the Max" Calculator

Post by 555 »

Beantown85 wrote:"If they had a section to put in gross salary, and would calculate the % you should be contributing based on contributions to date, I would think that would be a bit more useful, and not terribly difficult to add to the calculator."
Why would anyone care about the percentage? :confused
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SSSS
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Re: New 401(k) "Save the Max" Calculator

Post by SSSS »

Here's the spreadsheet I use for my planning:

Image

And in formula view:

Image

Weekly pay fluctuates, and the two bonuses are not predictable, so I come back after each paycheck to fill in the exact amount and tweak the projections accordingly.

Objective is to front-load early in the year then ramp down to avoid hitting the max before the last pay period in order to not miss the match (there are make-right contributions, but I'd rather not wait). As the standard contributions ramp down, after-tax contributions start, and I roll the after-tax contributions to my Roth IRA every January so that there are only a couple months of gains on them.
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SteelyEyed
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Re: New 401(k) "Save the Max" Calculator

Post by SteelyEyed »

555 wrote:Why would anyone care about the percentage? :confused
Not all HR departments allow one to contribute fixed dollar amounts. Mine does not. I have to figure the percentage myself. If you are not salaried, this can be bothersome, especially if your pay fluctuates wildly due to bonuses, overtime, etc.
555
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Re: New 401(k) "Save the Max" Calculator

Post by 555 »

SteelyEyed wrote:
555 wrote:Why would anyone care about the percentage? :confused
"Not all HR departments allow one to contribute fixed dollar amounts. Mine does not. I have to figure the percentage myself. If you are not salaried, this can be bothersome, especially if your pay fluctuates wildly due to bonuses, overtime, etc."
Wow. That's crazy. :shock:
Bungo
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Re: New 401(k) "Save the Max" Calculator

Post by Bungo »

SteelyEyed wrote:
555 wrote:Why would anyone care about the percentage? :confused
Not all HR departments allow one to contribute fixed dollar amounts. Mine does not. I have to figure the percentage myself. If you are not salaried, this can be bothersome, especially if your pay fluctuates wildly due to bonuses, overtime, etc.
I don't think percentages are so uncommon. Most places I've worked, including my current employer, have used Fidelity for the 401(k) provider. To change contribution settings, you use Fidelity's web site, and it has always accepted percentages, not dollar amounts. Fortunately, $17,500/(gross salary) is also an easy computation, although I usually end up reaching the limit a bit early due to bonuses (boni?) and such.
Easy Rhino
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Re: New 401(k) "Save the Max" Calculator

Post by Easy Rhino »

I was in the same hourly-fluctuation-percentage-only boat last year.

Remember the saying "if you have to ask how much it costs, you can't afford it"? I agree with the idea of "if you can find the finra calculator, you don't need the finra calculator"
BuckyBadger
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Re: New 401(k) "Save the Max" Calculator

Post by BuckyBadger »

Quinn wrote:
BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx

I'm not going to lie -- it never occured to me to use an online calculator for that...
$17500 / 26 = $673.07

Always good to doubel check.
You got me!! :oops:
jbk
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Re: New 401(k) "Save the Max" Calculator

Post by jbk »

BuckyBadger wrote:
Quinn wrote:
BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx

I'm not going to lie -- it never occured to me to use an online calculator for that...
$17500 / 26 = $673.07

Always good to doubel check.
You got me!! :oops:
This is why we need a web calculator :happy
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interplanetjanet
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Re: New 401(k) "Save the Max" Calculator

Post by interplanetjanet »

Bungo wrote:I don't think percentages are so uncommon. Most places I've worked, including my current employer, have used Fidelity for the 401(k) provider. To change contribution settings, you use Fidelity's web site, and it has always accepted percentages, not dollar amounts. Fortunately, $17,500/(gross salary) is also an easy computation, although I usually end up reaching the limit a bit early due to bonuses (boni?) and such.
My current employer uses percentages as well (provider is Schwab), and thankfully they true up their match with every paycheck, so there is no downside to contributing early. I just shovel as much as I can afford into my 401k early in the year and let the match flow in over the rest of the year. I'm glad I don't have to try to make things come out evenly.
peppers
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Re: New 401(k) "Save the Max" Calculator

Post by peppers »

Quinn wrote:
BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx

I'm not going to lie -- it never occured to me to use an online calculator for that...
$17500 / 26 = $673.07

Always good to doubel check.
What's a doubel?
"..the cavalry ain't comin' kid, you're on your own..."
Bungo
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Re: New 401(k) "Save the Max" Calculator

Post by Bungo »

jbk wrote: This is why we need a web calculator :happy
We have one, actually. Type 17500 / 26 into Google and it gives you the answer AND a web calculator.
555
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Re: New 401(k) "Save the Max" Calculator

Post by 555 »

Bungo wrote:
jbk wrote: "This is why we need a web calculator :happy "
"We have one, actually. Type 17500 / 26 into Google and it gives you the answer AND a web calculator."
Yes, but does it give you a 401(k) web calculator?
Bungo
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Re: New 401(k) "Save the Max" Calculator

Post by Bungo »

555 wrote:
Bungo wrote:
jbk wrote: "This is why we need a web calculator :happy "
"We have one, actually. Type 17500 / 26 into Google and it gives you the answer AND a web calculator."
Yes, but does it give you a 401(k) web calculator?
For that, you have to add a dollar sign: $17500/26.

Result:

(US$ 17 500) / 26 = 673.076923 U.S. dollars
kwahmaye
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Re: New 401(k) "Save the Max" Calculator

Post by kwahmaye »

Some plans make it very difficult to hit a target amount, others make it so simple.
My 401k only allows me to contribute whole percentages of my base pay. and even though we are paid weekly your changes are effective back to the 1st of the month. Bonuses also throw off the figures.
Wife's 457 account we can do half percentages or state a fixed amount 17500/26=673.07 and that is all they take no deduction from bonuses ect.
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og15F1
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Re: New 401(k) "Save the Max" Calculator

Post by og15F1 »

Or you can just set the contribution to the maximum allowable percentage of your check and let it roll until you hit the limit...
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