re: What is a reasonable % of my salary for 401k

quote:

---

Young single guy. No debt. 1 for 1 matching up to 7%.

---

I would go the 7% to get the match. Then I would buy my own IRA and shoot for 6% to 10% more into that.

quote:

---

quote:
So would it be better for a 30 yo to contribute 10% Pretax, or 6% Roth?

(I'm sure that's an impossible question to answer but interested on the feedback regardless)


You have to answer a couple questions before that answer can be provided:

1) Do you expect to be balling it up in retirement and be in a higher tax bracket than you are now or do you want to retire earlier than most living on modest means and likely be in a lower tax bracket?

2) Do you expect taxes to go up or down over time?

---

1. Probably living pretty modestly. Got to stretch that buck when I'm not working.
2. Probably going up. Unless politics make an abrupt 180

Do you work at a plant?

Those benefits are excellent.

I'm In the same boat as you but no pension and company only matches 5%. I will probably move on to a bigger company for better benefits eventually.

quote:

---

1. Probably living pretty modestly. Got to stretch that buck when I'm not working.
2. Probably going up. Unless politics make an abrupt 180

---

Then you have to decide which carries more weight. If you think your income is going to be lower in retirement, then it make sense to pay taxes then (traditional). If you think your taxes will be higher then despite a lower income due to tax increases, it would be better to pay the taxes now (Roth).

Personally, I like aggressive investing but I'll hedge my bets when it comes to government. I like to 50/50 traditional/roth.