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Bain & Company Hello Fishers
I am looking to switch into the strategy consulting industry. I have been working in the tech domain for almost 3 yrs now. 2 years in NY and 1 currently in India. I have completed my masters degree from the US.I would like to pivot into strategy. Currently working for a boutique healthcare consulting firm within the analytics practice. Looking for referrals in McKinsey & Company Bain & Company Boston Consulting Group Kearney Oliver Wyman. Looking for guidance from the community.
So where should I invest?
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Pre-tax 401(k) or after-tax...thoughts?
May I know what is the notice period if one resigns in infy during the first 6 months of joining? I am a lateral resource and they hired me in June, but they have no projects related to my tech and want me to take weird roles.. seems they are hiring to increase employee count and cross training most. just looking for options..
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Any recs for CIPM study books?
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It is what it is at this point. Just make the switch and don’t worry about it, only 3 years in a 30-40 year career.
That’s very true. Thank you!
You should also be doing HSA FYI. Probably the single best wealth tool available that people doing know. You basically save extra for retirement and roll this over at 55 into a retirement account
HSA is available only for HDHP (high deductible health plan). You do have insurance it’s just typically higher copays but lower premiums, and higher deductible, but you’re able to save $3750 a year (some of which is contributed by your company, like kpmg) this can be invested and grows over time and can be used for almost any healthcare expense including copays.
Actually I don’t get the argument, when you retire your income will DROP, so your taxes will subsequently drop. Unless you have passive income equal to or more then your current income that you can count on 30+ years from now? Therefore you should be paying less taxes on distribution in the future and during the years running up to distribution you’ll be making a return on the full pre tax dollars therefore you should have a larger amount of funds in the account.
How many people do you know make more in retirement then they did while working? Unless, the usual caveats .. they own a business, passive income etc… just because your making $X prior to retirement doesn’t mean your making $X when you retire .. $X drops to $0, then you have to count on other forms of income in retirement, and typically that doesn’t add up to $X. Therefore you’ll be in a lower tax bracket. Also you can wait until 72 1/2 until mandatory minimums come into affect for ira distributions, so if you retire at 62 you can wait 10 more years assuming you have enough to live on during the interim.
Not sure I get the logic - once you retire your income should significantly drop. What am I missing
K1 good catch
Something is better than nothing, at least you have been contributing ☺️
Yeah thank you at least I have been saving for retirement. I just wish I had elected Roth instead and trying to understand why young folks elect the traditional 401k
Explain please… I must be an idiot too because I don’t know the difference….
Yeah that might be a good idea. Do further research first.
Taxed now vs. taxes later basically. Imagine your distributions accruing 30+ years without having to pay taxes on your gains. Makes the argument very simple.
Yeah that’s exactly why I thought Roth is the better option
It actually isn’t always the better case. A lot of factors can come into play on which is better (Trad / Roth)
Like what can you please elaborate?
100% be in a ROTH 401K. Just switch over now, but like the fishes said, better that you have been contributing something vs nothing.
Thank you my friend! I’m definitely making the switch.
I’m doing traditional but planning to convert to Roth as I’m planning to go back to school and can covert to Roth with a much lower tax bracket given minimal income during bschool
I do traditonal 401k and Roth IRA.
D5 do not understand you argument. If you ask almost any financial planner, advisor, tax consultant they will all say Roth 401K is the best option for people in our industry career trajectory. It’s pretty simple. Get taxed now vs. later. The amount you get taxed on now is neglible vs. your tax free capital gains when you retire. Your viewpoint of “its such a stupid idea” doesn’t make any sense honestly from a tax / investment / retirement perspective.
You assume there’s no write offs in the future. Many people will own investment homes with a ton of tax benefits. You also assume you are in a low tax state, you could be in CA or NY where you’ll get taxed to hell right now. The money you are taxed on right now for Roth vs traditional is at your highest tax bracket. If you are say below the 24% and in a low state tax area sure it may make sense but it’s a case by case basis
You can do a mix. Roth will help in the future when you withdraw you won’t be taxed. 401k (not Roth) should help you NOW with taxes
I do a mix. You should talk to a financial planner
Obviously, individual circumstances influence this comment, but if you have a lower income now, just search Roth conversion and take the tax hit in the current year.
Ok will do thank you
This isn’t always the case, especially if you are mid career. Your money that you’re deferring would have been taxed at your highest tax bracket. When you retire, you may also have assets that allows you to write off taxes (e.g., investment real estate, business, etc.).
You should see if your 401k has an after tax option in addition to traditional and Roth 401k. That’s the easiest way to check
Chief
But if they don’t tax you now, that’s more money that can grow for the future. Don’t understand why ROTH is better here. Money now is worth more than money later, why would you want to pay taxes to the government now.
This is very helpful. I really appreciate you
There’s a solid argument for both sides and you can’t predict the future so I have both. This way no matter what I won’t have my eggs in one basket.
How much do contribute for both?