- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: How much of an emergency fund do I really need?
Posted on 3/4/15 at 10:12 am to Tigerfan56
Posted on 3/4/15 at 10:12 am to Tigerfan56
quote:
I can't contribute to my company's 401k until I've been here a year, and I don't even know if I will contribute (Company makes a discretionary contribution each year to each employee regardless of their individual contributions).
Contribute. It grows tax free. Investing money outside of a 401k means you have to make back what you lost in taxes first before you can't outpreform your 401k.
Posted on 3/4/15 at 11:34 am to barry
quote:
Investing money outside of a 401k means you have to make back what you lost in taxes first before you can't outpreform your 401k.
As I understand it, the difference is in taxable events that occur after the initial contribution, not the initial one.
You'll see the difference 10-20 years down the road more than you will in the short term.
It doesn't get an initial head start because it is taxed on the back end.
10000 Gross taxed account at 25%
10000 taxed to 7500, grows annually for 10 years at 8% to 16,191
10000 tax deferred grows to 21,589, taxed at 25% to 16,191
There are big benefits to a 401k, but the idea that taxable investments have to play catchup to the pretax investments isn't one.
Popular
Back to top
Follow TigerDroppings for LSU Football News