Quote:
Originally Posted by Buehler445
If the fees are high in the 401K I can listen to arguments for avoiding it if the fees are high. I’m a fan of Roth because I feel taxes are going up not down, even in retirement, but some of both is a good strategy. The biggest thing is get it in a retirement account. IRA has a 6000 contribution limit but you can do 6000 in a Roth and 6000 in a traditional. If you’re married your wife has the same limits. If you have a company sponsored 401K the limit is 14000. That’s where I’d plow the majority of your investment.
Big thing is emergency fund -> 401K up to the match -> CC debt -> normally you’d pay off consumer debt but if the rate is low I wouldn’t -> max out retirement.
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Yeah, my last job matched the 401k contribution but my current doesn’t so I just rolled it into a traditional IRA. I’ve maxed out the contributions the last few years and have been considering opening up a Roth as well. I think I asked what others thought about the traditional vs Roth in this thread a few months back. Like you said, I can’t imagine taxes going down in 30 years when I’m looking to retire. Either way, as long as I’ve got contributions into some from of IRA, I think the time invested will be more important than how it’s taxed.
My biggest issue lately is that I’ve got a lot of cash in a money market that’s only getting, like, a .00003 return. There’s no reason a six figure account should only be getting me $100 per year in returns. I appreciate not having any risk but inflation is eating those savings up far more quickly than I’m comfortable with.