- 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: roth 401k vs regular 401k
Posted on 10/17/19 at 8:19 pm to baldona
Posted on 10/17/19 at 8:19 pm to baldona
I would think you would have gotten tired of people showing how you are talking out your arse, but ok.
The only instance where that would be a consideration is if the client is maxing out their 401k election, has capitalized on a backdoor Roth if they can, and still want to save additional funds. Which would be the case in either election scenario for the example person.
People with an actual financial plan target a certain amount of savings for the year, calculated by a need in the future, add in a margin of error, and then save that amount. And then they enjoy the rest of their money.
“Save what you can” or “Save whatever is left” are not plans. Those are reactions.
The only instance where that would be a consideration is if the client is maxing out their 401k election, has capitalized on a backdoor Roth if they can, and still want to save additional funds. Which would be the case in either election scenario for the example person.
People with an actual financial plan target a certain amount of savings for the year, calculated by a need in the future, add in a margin of error, and then save that amount. And then they enjoy the rest of their money.
“Save what you can” or “Save whatever is left” are not plans. Those are reactions.
This post was edited on 10/17/19 at 8:22 pm
2
Posted on 10/17/19 at 8:34 pm to DeathAndTaxes
Lol, ok man. Mr. Professional here telling us how we should do it. Yet you don't tell your people to reinvest their tax savings from a Trad 401k over a Roth? Give me a break.
This is exactly why people with money have a good lawyer, good accountant, and good financial adviser. Because their financial adviser doesn't know their taxes like they think they do and their accountant doesn't know their investing like they think they do.
Any comparison X to X with a Roth and Trad is obviously going to come out better for the Roth. That's a ludicrous argument.
If you save money on taxes by investing in a Trad 401k, you should absolutely invest your savings in either a Roth IRA or taxed account.
This is exactly why people with money have a good lawyer, good accountant, and good financial adviser. Because their financial adviser doesn't know their taxes like they think they do and their accountant doesn't know their investing like they think they do.
Any comparison X to X with a Roth and Trad is obviously going to come out better for the Roth. That's a ludicrous argument.
If you save money on taxes by investing in a Trad 401k, you should absolutely invest your savings in either a Roth IRA or taxed account.
Posted on 10/18/19 at 12:16 pm to DeathAndTaxes
For what it's worth, seeing how frustrations are rising, I don't recommend this either.
While it sounds like a great idea on the surface, the truth is, people do traditional now to *save* money on taxes so they can get a larger paycheck for spending, not so they can save more.
I wrote a script for it if you want to use it:
Advisor: "Mr. & Mrs. Client, I'd like you to up your 401k contributions to the max so we can save $8,000 in taxes per year. Then we'll take that money and invest it too. It'll be great for your future, but it's going to cost you $16,000 extra per year. What do you think?"
Mr. & Mrs. Client: "Hell no."
/scene
While it sounds like a great idea on the surface, the truth is, people do traditional now to *save* money on taxes so they can get a larger paycheck for spending, not so they can save more.
I wrote a script for it if you want to use it:
Advisor: "Mr. & Mrs. Client, I'd like you to up your 401k contributions to the max so we can save $8,000 in taxes per year. Then we'll take that money and invest it too. It'll be great for your future, but it's going to cost you $16,000 extra per year. What do you think?"
Mr. & Mrs. Client: "Hell no."
/scene
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News