Need tips on 401K savings and contributions

Hello Ilites...

could you please suggest tips on 401K savings i.e

how much you contribute or suggest to contribute...
how do you invest or does your company invest in the funds or bonds?
do you have any financial planner who suggests what to do or invest in?
what are the tax saving tips you pick up...(like buying home in US or India or other things which help in reducing taxes...)

I appreciate your views on this...basically I am looking for some suggestions on financial planning etc


thanks inadvance

Hi - I am assuming that your employer has offered 401k as part of your benefits. We have discussed this in some detail at this thread 401(k). Typically you will be given a list of available investments to choose from - you can research each one to see the returns and performance of each fund and then determine how to invest. You should spread your investment and not be heavy in any one area.

As for suggestions in tax planning - I would say that you should definitely take advantage of any retirement benefits offered at work i.e. 401k. If you buy a house in the US, the interest you pay towards your mortgage is a deductible amount in determining your taxes along with real estate taxes paid, etc.

thanks shobhana..

Hi Sahithya garu,

I appeciate ur planning towards savings. I dont know ur age. But, i suggest u to devide ur investments ie Deposits, Kids plans, Pension plans, Unit Linked Insurance Plans etc in our reputed world no 1 Insurance Co. of LIFE INSURANCE COMPANY OF INDIA.

Pl feel free for further information.

Regards

Lalitha Reddy