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Recently Store Managers have been offering me jobs from different locations but same company in my town. The company is T-Mobile. It’s going to be my first job. I have a couple questions for any former/current employees. Is it better to work for T-Mobile, metro by T-Mobile, or a third party T-Mobile? Any difference in benefits or wage? Thanks
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https://www.bloomberg.com/news/articles/2022-09-28/rolex-discount-on-sale-uk
From the article,
With the British pound retreating to record lows against the US dollar, a steel Rolex GMT-Master II that sells for $11,289 in the US can be purchased for $9,293 in the UK with US dollars, a discount of 18%, according to WatchPro. A 41mm diameter Datejust model can be bought in the UK for $7,088 in US dollars, a discount of 19% compared to US retail.
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Each have their own benefits. One gives you the tax break now the other gives you the tax break later. Roth 401k grows your investments tax free so when you withdraw you won’t pay taxes on it. However you do it with after tax dollars. Some folks will say if you’re young and got 30 years typically Roth will be better since majority of your portfolio at the end of 30 years will be gains and not contributions. For example: $1k per month in 401k would be $360k contributions which you received tax benefits from but your $860k (7% annual return) would be taxed when taken out though probably low tax bracket because you won’t take out a whole lot. Where as if you invest that $1k per month in Roth that $360 would be after tax dollars but the $860k would be tax free. Ask yourself if you’ll be paying more taxes now vs later and when you want to see tax benefit and that should help.
Beautiful explained. Thank you for this M1!
Mentor
Unless you’re asking about a Roth 401k or talking about mega back door contributions, pre 100% of the time.
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Being tax diversified is optimal. If you’re young and can afford it, maximize your 401k Roth (I.e., “post tax”). As your income increases and you’re more concerned with lowering your taxes, contribute more to your traditional 401k (i.e., pre tax). In addition to retirement, hopefully you’re contributing to other investment accounts (e.g., taxable account, Roth IRA).
By the time you retire, you’ll maximize your tax benefits by portioning the amount you take out from each account.
In short, contribute to both - traditional and Roth 401k.
I agree with being tax diversified. It’s hard to tell what tax rates will be in the future. My first 3 years out of college I did roth, but now that my comp has increased I switched to traditional to help lower my taxes. Especially because I am currently single with no dependents lol
I contribute fully pre tax and then have my settings that if I max out before the end of the year contribute a post tax amount to not lose the employer contribution.
The match isn’t insane it’s actually really bad but they do contribute per paycheck not up to a certain limit. My comp has gone up a lot in the past two years so I usually max out around October and I dont say no to free money
I do Pre-tax 401K & I do Roth IRA