I’d rather have my money untaxed earning compound interest over 20-30 years versus doing a Roth.
401K contribution
- Thread starter madscotsman
- Start date
A Roth should be an addition to a 401k. But your best off maxing out your 401k and lowering your taxable income for the year.
You are still going to pay a portion of those earnings, i.e. a much higher number to your partner, the federal government. x% of 10k contributions vs x% of 40k contributions + earnings.
Do you think your tax rate is going to be lower in 10, 20 or 30 years? We are far in debt and digging deeper, taxes will NEVER be lower than they are right now. Pay tax now, grow without a partner... but its all about decisions, so do what you think works for you.
Just a minor caveat, if you get a match, always go 401K first until you meet the match.
You really have no idea what taxes will be in 20-30yrs. Could they be higher sure, could they be the same sure, could they be lower possibly.
Also at anytime the government could change how it taxes IRA, Roth IRA, 401k.
roth is great, but its very small contribution, $6000 a year.
of course it's a good idea for a 401 or other company entity contribution.
and stocks are great because well .....you can dump in as much as you want and choose what you want.
of course it's a good idea for a 401 or other company entity contribution.
and stocks are great because well .....you can dump in as much as you want and choose what you want.
Whether it be a 401K, Roth, stocks, or even precious metals. The important thing is to save for retirement EARLY! I'm still kicking myself in the ass for not putting more money away when I was younger. I look back at all the money I wasted... smh. Funny how priorities change as you age.
U.M.
U.M.
I’m sure that taxes will be higher in 20-30 years. However, growing my 401k contribution of $19,500 for this year and whatever it keeps getting raised to at 7% versus the max Roth contribution at 7% I believe you’re going to be far ahead in he long run with the 401k as I am compounding 3x the dollars yearly.
in other words ....start as early as you can ....do a combo of all the above. I agree I started somewhat early but I didn't dump enough money in. I will say, that money was dumped into real estate, which made me a huge chunk of money, and still does. cannot go wrong with stock, gold, and real estate (in the long term). I'm 33 years old.
run a roth calculator. it's easy to hit $1 million. 401k is good but you can't ignore roth ira either. its best to have a combo ....roth ira, stock, mutual fund.
I do 17% into 401k with a 6% match, 3% into roth IRA, a mutual fund, and real estate. Also some of my company stocks. Need to get into trading. If/when I get a raise, I will probably bump the 401k and roth contributions up a point or two.
Make sure you speak with a tax expert as converting turns that money into income for the year. Normally best to do the year you make the least money.
Interesting, didn't think it would if it goes directly from one account to another. Thanks, ill look into that.
your converting pretax money into post tax money. You will have to pay the tax out of pocket on the account value converted over.
It’s because it’s a Roth account. Those funds are post tax. A 401k is pre tax. But definitely talk with a tax expert.
get an account with etrade and start trading =)
Roll over the 401k to the new job. If they match and you’re unhappy with the options then contribute up to the match and then open a vanguard account and invest through there.
Funny how you mention that. The amount of money I blew on things while young is crazy.
My parents were never really into investing or talked about it. I can really see the power of generational wealth now that I understand what investing is.
For time being she’s not going back to work. Gonna put a little more time towards kids. While she worked kids were in school from around 8am to 6pm that she would pick them up. We didn’t like it and didn’t like how things were going for her at the job so we decided she should quit and put more time at home
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