{ "media_type": "text", "post_content": "Should I max out my 401k first or max to employer match and then throw the rest in market myself? I see it as why wouldn’t I hit 19.5 as I beat the taxes one time", "post_id": "5facbdf1f563f1002066d3ba", "reply_count": 6, "vote_count": 1, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting" }

Should I max out my 401k first or max to employer match and then throw the rest in market myself? I see it as why wouldn’t I hit 19.5 as I beat the taxes one time

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I am newly converted believer that a traditional 401(k) should only be used to 1. Get max employer contribution % and 2. As a tax reduction tool so you can contribute to IRAs if you are on the bubble because of income limits. Hear me out. When you contribute to the 401(k) or any retirement investment vehicle for that matter, you are locking up that money only to be returned when your older/ under specific circumstances/ at a penalty. I believe that one should take the employer max, contribute to a Roth IRA and then invest the remainder in a personal brokerage. Yes, it is not taxed advantaged to do so, but you have to weigh that premium you pay vs. the time your money is locked away in a retirement account. Personally, I’ll pay the less than 0.5% cost YoY of keeping my money in a taxable account that I can utilized whenever I want.

smart

True. I max my traditional 401k because of the limited access. I want to make sure that no matter how bad I want to play the fuck it up challenge with my money, old me will be taken care of haha 😂

*”for now” vs “one time” 😂. What you should do is 1) have 3 months of savings, 2) try to pay off debit with high interest rates (anything higher than 5% apr), 3) contribute to match first, 4) then Roth IRA, 5) then max the rest of the traditional 401k, 6) save up to 6 months of savings, 7) invest in the market

I max the back door ira. Have 0 debt at the moment. So I guess I’ll max it to 19.5 then throw the rest in myself and gamble in the market for enjoyment

You can always mega backdoor Roth 😉

Pls explain!

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