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Roth IRA vs 401k
Posted on 3/2/15 at 8:38 pm
Posted on 3/2/15 at 8:38 pm
I am currently participating in my company's 401k program, and they do not match (currently investing 12%)
I have just opened a vanguard Roth IRA, and invested the minimum with plans to max in 2015.
How would you go about distributing the investment between the two?
I have just opened a vanguard Roth IRA, and invested the minimum with plans to max in 2015.
How would you go about distributing the investment between the two?
Posted on 3/2/15 at 8:44 pm to negatiger17
Max Roth then 401k in your case
Posted on 3/2/15 at 8:45 pm to negatiger17
Depends on your income
What kind of company doesn't match any contributions? That sucks
What kind of company doesn't match any contributions? That sucks
Posted on 3/2/15 at 9:01 pm to negatiger17
If they don't have any match at all, I'd max the Roth first before putting anything in the 401.
And also try to put myself in a position where I can get hired somewhere else that does offer a match.
And also try to put myself in a position where I can get hired somewhere else that does offer a match.
Posted on 3/2/15 at 9:09 pm to negatiger17
Without knowing anything about your income, typically its beneficial to contribute to a Roth when you are younger because you'll be in a higher tax bracket when you get older. There are income limits and phase-outs.
I'd recommend to stop contributing to the company 401(k) if there is no match. I'd contribute the max allowed to a Roth IRA and then any amount you'd wish to save for retirement, put it in your company 401(k)
I'd recommend to stop contributing to the company 401(k) if there is no match. I'd contribute the max allowed to a Roth IRA and then any amount you'd wish to save for retirement, put it in your company 401(k)
Posted on 3/3/15 at 12:46 pm to Croacka
Plenty companies don't match. Not too mention crappy choice of funds. Nothing new.
Posted on 3/3/15 at 3:49 pm to negatiger17
Any type of IRA is superior to a 401K EXCEPT that you can put a lot more money into a 401K. You have a lot more options with an IRA; 401Ks are basically tied to the mutual fund industry. Mutual funds are basically honest, but many hedge funds are not...the crooked hedge funds were aided in their theft of billions from the nation's retirement during the stock market crash by 401K dollars being tied to mutual funds and the inability of the individual investor to short or move his money quickly.
I like Roth better than tax deferred, but that's probably because I have about 20x the funds in a tax deferred.
I like Roth better than tax deferred, but that's probably because I have about 20x the funds in a tax deferred.
This post was edited on 3/3/15 at 3:51 pm
Posted on 3/3/15 at 4:29 pm to Overbrook
Not trying to hijack but since the OP has a 401K that is not matched, if he had one that was matched, would you max out the 401k 1st then go to roth?
Posted on 3/3/15 at 4:32 pm to sonoma8
Yes. Take advantage of the maximum match. It's free money.
Posted on 3/3/15 at 4:33 pm to sonoma8
quote:
if he had one that was matched, would you max out the 401k 1st then go to roth?
Max out up to the match. Regardless of the better investment options in a Roth, you aren't going to find an investment that has a return that is better than an instant 100%.
Posted on 3/3/15 at 4:46 pm to studentsect
Sorry OP, one last question, just looked it up and it is a 4% match at 80% vested as of right now. Next year it will go to 5% and 100%. So basically I need to start dumping more money in that and pull back of maxing out my Roth?
Sorry again OP
Sorry again OP
Posted on 3/3/15 at 4:48 pm to sonoma8
Key thing to to just Max out the match, always
Then you can go back to funding your Roth IRA
Then you can go back to funding your Roth IRA
Posted on 3/3/15 at 4:49 pm to Croacka
Thanks Croacka.... Makes sense if you think about it i guess.
Posted on 3/3/15 at 8:13 pm to Overbrook
quote:
but many hedge funds are not...the crooked hedge funds were aided in their theft of billions from the nation's retirement during the stock market crash by 401K dollars being tied to mutual funds and the inability of the individual investor to short or move his money quickly.
Pretty slippery slope you had to slide down there to get all the way to "theft". Hope your arse isn't chapped anymore than it already was before.
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