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Old 01-09-2019, 04:06 PM   #5
Gocka
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Join Date: Dec 2012
Location: Ohrid
Posts: 2,306
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In the USA not everyone has a 401k. Its a non compulsory pension savings vehicle that you invest in at your own choice. Many employers have a company sponsored 401k where the company will match your contributions to your 401k, usually between 2-4% of your salary. 401k's are usually invested in funds and bonds, never in individual stocks. The main benefit of such a plan is deferred taxation on your and your employer's contributions to the account.

Our compulsory pension system is social security, which is automatically deducted from you pay ever pay period. Currently that is 6.2%


I'm surprised no one invests directly in stocks. Is the Australian stock market unstable? The American stock market is quite steady, long term of course. As long as you don't treat it as a slot machine and actually do some due diligence, its not to hard to be on the winning side.

What do you guys do with your saving? Interest on savings accounts is usually negative vs inflation.
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