Is there a benefit to using the 401(k) platform your firm offers? Assuming no matching, is there any value in finding other platforms? (Sorry for the wrong terminology major noob).

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You don’t have a choice - since it is direct deposit, you have to use the firm’s provider.

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A5, have you actually done this or are you just basing it on what you see on the Fidelity website? You need an actual business with an EIN to do it. It's not something any random biglaw associate can just go and do because they want to have a 401k at Vanguard but their firm's 401k provider is Fidelity. It's doable with some setup, but it's not as simple as just opening an account somewhere.

The service provider doesn’t really matter as all 401(k) plans will offer similar funds (full market index funds, S&P index fund, large cap/small cap, blended, etc.). The value of a 401(k) is that it reduces your taxable income dollar for dollar. For example, you max your 401k ($20,500 for 2022), that means your taxable income decreases by $20,500, saving you ~$8,000 in taxes. You can only participate in the firm’s 401(k) plan and can’t just choose whatever platform you want.

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I also have a separate vanguard account for general investments, which I contribute to in addition to maxing out my 401(k). If you aren’t sure what to invest in, always choose broad market index funds as returns will mirror the entire market—no brain power required on your end. Set up auto withdraws every month and forget about it until you retire.

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…aside from the tax advantages? Not sure I understand the question.

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I hedge by doing traditional 401k and Roth IRA.

At least for my personal situation, I can’t imagine having over $150k of taxable income in retirement, which is way less than what I make now. So there’s significant tax savings to be had for me going full trad. Hence the reduction in marginal taxes now and the ability to invest those savings for decades makes sense for me.

Yes - 401k is tax advantaged. Definitely use it.

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Just piggybacking to add some links I found helpful assuming you don’t have this background:

https://www.biglawinvestor.com/guide-prioritizing-investments/

https://www.reddit.com/r/personalfinance/wiki/commontopics/

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There’s not that much difference between 401ks imo. Go in and pick your own funds if you like instead of the target date fund (too conservative for my appetite). Worth it to use your firms to make it easy with firms taking it out directly and direct depositing into 401k and they’ll also generally auto stop once you hit the limit so you can just say 100% or whatever the max is if you want to max it out early in the year and you won’t accidentally over contribute (but confirm this with your benefits dept).

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Assuming that your firm is your only employer, that's the only option you have. If you don't participate in a the employer sponsored 401k, the other retirement plan option with tax advantages is an IRA. But that is subject to lower annual contribution limits ($6,000 annually in an IRA vs. $20,500 in a 401k for 2022).

There are other things you can do if you also happen to own a business, but I'm assuming that you don't if you're asking this question.

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