{ "media_type": "text", "post_content": "If i can afford it, any reason why i shouldn’t be maxing out the 401k and Roth IRA? $19,500 & $6,000 respectively.", "post_id": "605e1bf67625880022b9c9ff", "reply_count": 37, "vote_count": 2, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter", "feed_type": "bowl" }
null

If i can afford it, any reason why i shouldn’t be maxing out the 401k and Roth IRA? $19,500 & $6,000 respectively.

like
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

Only case off the top of my head would be if you were saving for a down payment or a similar large cash purchase (wedding/honeymoon, home remodel, etc). Or maybe if you needed some extra cash flow for refilling your emergency fund (say you had a house repair or applicable replacement).

like

Completely agree. I think op said further down that they already have enough for a down payment.

Max out every chance you get. If things get tight, only put in what your company matches in your 401k and put the test in your Roth. Can’t pass up your company match. That’s free money!

like
Recent IconRecent

Emergency fund, paying down any high interest debt, or preparing for a big purchase (house?).

I'd say you should be maxing the 401k/IRA if the above are good to go.

likesmart

Great summary from KPMG 1.

Liquidity is the only thing I can think of

like

Yes but only the contributions of 36. Of you take out more from earnings, you will have tax and penalties

The only thing to say is "why not?"
Makes complete sense to max both and uze backdoor Roth IRA, if the HHI takes out out of eligibility for Roth IRA.

like

No.

like

Only thing I can think of is if you have ability to use an HSA. If so I would would do that before going over 401k match amount.

smart

So humble that you are!

You should absolutely do this, the earlier the better.

This! I juiced my 401k deposits around 28. Felt great, has worked out pretty well.

Real estate could be an area you want to invest in and those contributions can be leveraged for the capital needed for acquiring cash flow positive properties.

I hear you. Trying to do it with my second home. Also on my 30s, but no kids. I know that I should move to do a lower down payment, but I've been in a nice townhouse for 5 years.

But I also know that it really isn't worth buying just one multi-family. I proba lt need at least 8 units to make this worth the effort. I think I'm aiming for 12.

Is it 19.5 and 6 separately? For a total of 25.5!?

If you're over the limit, you can contribute to an tIRA, do the backdoor to get it into the Roth.

like

Do you get to choose where the 401k investments go? My 401k performance personally sucks and I can’t change where the stocks get invested in. Also I plan to always make over six figures so it’s really not saving me much money imo

Never heard of a 401k only having one option either. Would definitely check that.

And on top of that, most too companies offer a match. It looks like Amazon match is 2% total if you do 50% of 4%. So at $100k, that's still $2k of free money each year, assume you are fully vested.

On top of that, if you plan to be a high earner, you will greatly benefit from maxing out your 401k and reducing you current year tax liability by contributing to a traditional 401k. Even if you contribute to a Roth 401k, that's s better option than brokerage account.

Additionally, if you are going to be a high earner, you are going to need to make use of multiple investment options to save enough for retirement, in the most tax efficient manner. 401k, IRA, HSA, brokerage account. An of course if you have access to any stock options or pension plans or retiree health plans, you factor that stuff in too.

But sounds like you need to do s lot of research if none of his is in your radar. The earlier you start, the easier it all is.

You need to watch the income ceiling for Roth contribution eligibility

Just don’t have a traditional Ira balance if you may need to do a backdoor Roth

like

Related Posts

Pregnant and about to tell lead. So nervous with this economic climate, and potential layoffs before maternity leave in early October. (Cont’d)

likehelpful

Additional Posts

To any Partners here, how do you successfully navigate the last step in consulting? From Senior Manager to Partner?

like

Drove an intoxicated client home last night.. Exceptional service am I right?

like

Your favorite excel shortcut, go!

like

Recommendations of good resources related to obtaining small business loans and starting your own business? Had an epiphany today; eight years in and over it. Finally going to open the restaurant/bar.

like

Next step and/or advice for junior strategist that recently received their first (one-off) freelance gig and wants to continue freelancing? Thanks

like

I’m a planner with 1.5 years of experience in San Francisco and make 52k. When interviewing, what should I ask for so that when I hop jobs I get a solid increase? Is 70k too much?

like

Thoughts on Partners in Performance?

like

Trying to drink less Diet Coke, but now feeling like I’m drinking LOTS of sparkling water to compensate. i.e. 6-8 la croix, bubly, pellegrino, etc. per day. Serious question - I’m still better right?

like

Have a call with a recruiter coming up. What should I expect and how should I prep?

like

Revamping my resume and I'm getting into 2pager territory. I'm only an AD...any advice on keeping it 1 page? Can I take away job descriptions for the most part?

Why am I always tired?

like

Imma just leave this here.

Post Photo
likefunnysmart

Hi 🐠, need your help on negotiating an offer. Received a verbal offer but they are not willing to budge on the base salary and no sign on bonus. PTO is also non-negotiable (and unfortunately much less than at my prior firm). Is there anything else that I should ask about / try to negotiate? TIA!

like

(wedding isn't until at least next year) but I got excited and started looking for black tie wedding gowns for fun and keep finding the same designs. Do you guys have any go to stores or sites for gowns?

likehelpful

I'm stumped!
Coworker creates "Sheet A" with invoice numbers
I use Monarch to extract invoice #'s and amounts from another report.
I do a pivot table to compile amounts by invoice. I copy those results to "Sheet Z".
I then do an @vlookup on Sheet A referencing Sheet Z (just the invoice # and amount).
It isn't working unless I go to Sheet Z and type over the invoice # (same number)! All invoice #'s are absolute and in the same font & alignment. Workbook has 10 yrs data. Has worked in past!

like

Any agencies committed to WFH forever? So many tech co’s are going that route, and it’s been hugely beneficial to me both personally and professionally, but my current agency seems dead set on bringing us back into the office eventually. I’d like to start looking at a new place of employment but working from home is a must at this point.

like

When will this market crash geniuses and over achievers?

likefunny

I have worked remotely for the past 4 years and am now for the 1st time in my career managing employees who are on-site (in-office), b/c I recently changed companies and some of my new team prefers to be on-site. I’m still remote though. Tips for managing on-site employees as a remote manager?

like

ETH and BTC right now

Post Photo
like

how do highlight a secondment experience on your resume? (E.g. how to describe it, key words used, etc)

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

For account settings, visit Fishbowl on Desktop Browser or

General

Legal