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RE: A homesteader's chicken guide to trading and investing in the crypto-currency world
You did a great job at explaining, but just one question.....What is a 401K that is where you lost me. ...LOL Love chatting on slack
401K is a common retirement plan in the USA. It is where you have money automatically taken from your pay check without paying taxes on it, normally a company will match what you put in up to a certain amount like 5% of your income pre tax so you put in 5% and they put the same dollar amount into an account where it is invested into the stock market. You cannot take it out until retirement age or else you pay a very heavy tax for taking it out early. For example, I put int 7% of my jobs income into a fidelity.com account and my company matches up to 5% so the other 2% they don't . The Fidelity company takes that money I put in and buys stocks. I partially get to choose which stocks if I want. The idea is that the company stock prices goes up when I retire along with my 7%+ I put in my whole life and I will have enough to keep living and not work when I retire. Since the stocks in big companies generally increase it is like a compounding interest. Does that make sense?
Yes absolutely thank you for the break down.