Retirement funds (401k vs. Roth)
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Retirement funds (401k vs. Roth)
Thinking of making a change to my retirement funds. Currenty I contribute 10% to my company 401k with a 4% match.
I'm thinking of only doing 4% to get the match, and dumping the rest into a roth IRA every paycheck with direct deposit.
The short term tax benefits of the 401k I believe are irrelevent compared to what can come out of the Roth IRA in 30 years. I have a guy who manages my Roth currenty, and he is unbelievable, so I think my money would be better served with him, rather than me choosing from a list of 10 mutual funds for my 401k.
I'm thinking of only doing 4% to get the match, and dumping the rest into a roth IRA every paycheck with direct deposit.
The short term tax benefits of the 401k I believe are irrelevent compared to what can come out of the Roth IRA in 30 years. I have a guy who manages my Roth currenty, and he is unbelievable, so I think my money would be better served with him, rather than me choosing from a list of 10 mutual funds for my 401k.
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From: ɯooɹpǝq ɹnoʎ
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The short term benefits are irrelevent only until you pay taxes. Then you'll wish you had more deductibles.
However, I do believe in the power of Roth. If you're young, maybe under 30, I think the benefits of a roth are higher. My company provides a Roth 401(k) option, which I contribute to as opposed to their traditional 401(k) option.
It is a smart move to maximize the free money - contribute the maximum your company will match and take whatever they're willing to give you.
There are several calculators available to see the benefits of Traditional vs. Roth and vice versa - bankrate.com may have some calculators.
However, I do believe in the power of Roth. If you're young, maybe under 30, I think the benefits of a roth are higher. My company provides a Roth 401(k) option, which I contribute to as opposed to their traditional 401(k) option.
It is a smart move to maximize the free money - contribute the maximum your company will match and take whatever they're willing to give you.
There are several calculators available to see the benefits of Traditional vs. Roth and vice versa - bankrate.com may have some calculators.
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I'm with Michael Shedlock: cash is a good place to be right now with investment money. Go for the match and sit on the rest for the intermediate term, at least until the coming double-dip has bottomed.
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From: ɯooɹpǝq ɹnoʎ
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^ x2 ^ follow the funds you're considering investing in. Look at the historical fluctuations and see if they're currently AT bottom. If they've come back up to their normal price, it's likely going to drop again.
Some are still low, some have "recovered" and possibly going to drop again.
Some are still low, some have "recovered" and possibly going to drop again.
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From: Leesville, Louisiana
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I have my retirement and investments in several accounts.
Annuity 6% interest per year gauranteed
Savings bonds- 100% after 5 years then intrest
Thrift savings- this account has my money split 8 ways. I earn about 3% per quarter depending on the market. It is only for government employees
Penny Stocks- goes up and down sometimes as much as 300% per day. I keep this as my play money. If I do not check it every day it can disappear so it is pretty much gambling if I do not have research time.
If you can afford it, split your money many ways so that when the market goes sour, your investments do not loose everything.
Annuity 6% interest per year gauranteed
Savings bonds- 100% after 5 years then intrest
Thrift savings- this account has my money split 8 ways. I earn about 3% per quarter depending on the market. It is only for government employees
Penny Stocks- goes up and down sometimes as much as 300% per day. I keep this as my play money. If I do not check it every day it can disappear so it is pretty much gambling if I do not have research time.
If you can afford it, split your money many ways so that when the market goes sour, your investments do not loose everything.
