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hey folks, I am going to join Oracle ossi in Hyderabad location. I have never been to Hyderabad, and will be relocating. Please guide on what would be good areas to look for rent. Also, what would be rent like for 2/3 bhk. Ideally my budget for rent would be <25k. Initially I will be going but in future my family will join me once I am settled. Any points to note or any other gotcha to keep in mind ? Please suggest.
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Roth.
Low tax bracket now = Roth. Anticipating taxes to increase, either due to more social programs or our debt = Roth
Roth. No question.
YOU DO NOT NEED TO PULL YOUR MONEY OUT OF A 401k EVEN IF YOU CHANGE JOBS. The expense ratio is going to be much better in a 401k versus an IRA, which is a retail product.
There is a personal investments bowl that answers this every which way. Suggest you check it out.
That is dictated by law— income limit thresholds will automatically make you ineligible for a Roth
Any one can do a back door Roth IRA, regardless of income. Just requires an extra step and completely legal.
No income limit on Roth 401ks either.
OP- Given your situation, its likely you should be 100% Roth.
It all boils down to your effective tax rate now vs. in retirement. This is impacted by your 1. Income and 2. How tax laws change between now and your retirement.
On #1 I’m assuming your income will grow and you will save well throughout your lifetime. If so, its highly likely your taxable income in retirement will be higher. Thus pay taxes now at the lower rate and go Roth.
On #2 there are two schools of thought. One is we dont have a crystal ball, dont try to predict tax policy and ignore this altogether. I tend to think taxes may increase due to our national debt and therefore would prefer to pay taxes now (when we are ignoring it) vs 30 years from now.
Down the road id recommend re-evaluating when you hit new tax brackets. I generally recommend a mixed approach when making 180+ depends on existing savings and years til retirement
But do the tax loopholes for the very wealthy affect IRA withdrawals too?
At what salary is it advisable to switch from pre tax to post tax?
M1 can you elaborate?
As others have stated, given your age and income now, Roth is undoubtedly your best option now.
Following OP. I start my new job at a startup next week lol. Debating the same thing but was leaving toward M1 advice. Maybe S&1 can weigh in on that option for existing savings?