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Hi ,I have been interviewed and selected in S&P Global .salary almost negotiated and waiting for the offer letter to release. But seems like they are not willing to release the offer because of my 90 np . They are asking to join by 60 days but initially I told them my NP is 90. Even I am ready to take the 60 days offer but now they are not releasing offer as they want assurance.Now they are not picking calls.seems like i will loose the offer. Is there anything can be done.
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Rising Star
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The point of the 401k is the tax advantage, not the investment options
You remove the ~$20k from your income, thus paying lower federal taxes at a time when your tax burden is almost assuredly higher than when in retirement.
Both. Always contribute to 401k up until employer match minimum. After that, Up to you. I prefer adding in a little more but I don’t max out side I have other expenses I’m saving up for.
Por que no los dos?
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If you are in investment banking, you will soon be able to easily max out your 401k contributions. Do that first for company match and tax reasons.
Maxed out. I make enough for what I need now and then some. Might as well use tax advantaged accounts as much as I can to ensure I don't have to keep up this grind forever.
Always contribute to at least maximize your company 401k match, it’s free money.
Let’s assume that the time horizon for using the $1,000 is the same in both examples – i.e., retirement.
Two issues that come to mind with the taxable account are:
1) Tax leakage during the investing years. Mutual funds must distribute their cap gains and income annually, which are taxable events if held in a taxable account. Many stocks have dividends. Taxable bonds have taxable interest. Etc.
2) Turnover cost during the investing years. In a taxable account, you’ll pay capital gains if you sell part or all of a position pre-retirement above cost basis. Not the case in a 401(k). So portfolio management / rebalancing is a bit trickier.
If you put $1,000 into, say, a non-dividend paying stock that has tremendous growth, then you’d rather own it in a taxable account.
Rising Star
It’s free money. Not only is it free, but it’s tax free. There are few times when a decision is as easy as maxing out your 401k.