Should one open a Roth IRA in addition to their 401k?

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

Yes, max out both

like

Back to the Roth question, contribute to your 401(k) up to the company match, then contribute to a Roth IRA (if you're under the income limit) up to the annual limit, then look at other investments like Real Estate or whatever. The reason is (1) the company contribution is like an instant return on capital which will compound for decades, so take it, and (2) a Roth because it's not taxed when you take it out at retirement, when your marginal tax rate will be highest.

like

I do Deloitte 6% but it's laughable. 1.25% of your salary lol

like

Good question, I currently contribute to both and have a total of 15% split evenly among both options. I like being able to have after tax and pretax money saved for retirement

If you're under a certain pay level yes. Otherwise you can't use Roth IRA

Your current self will be sad at putting away money that you can't spend now, but your future self will love you when you retire

At 59.5 fuck that.. Real estate is the way to go

It is an interesting concept, everyone says to be poor now and rich later, yet you can't really 'get down' when you're sixty plus. I say a healthy mix, enough to know you'll be ok and try to make smart choices now with your real estate options

In places like LA, people can make 100k/yr in appreciation, flipping, etc in the real estate market. This is with just one house, your primary residence. But a mid market house, fix it up, move in two to three years and just keep trading up.

Related Posts

What do unemployment benefits look like now? 450/week plus an additional 600/wk if it’s covid related? Is it taxed as income?

like

Saw an email today about the Pension and click on the link. Saw I have some money in there. I’m 100% vested. I was wondering how does the Pension work? If I decide to leave do i get a check?

like

Looking to get a new credit card. Is chase sapphire the best out there for cashback/benefits?

like

What is compensation looking like in healthcare consulting these days?

like

What is the average retiring age in advertising ? How many years can you give before you age out and retire... maybe by choice and maybe not? What next?

What are the pay bands at Slalom BA level for 2 YOE? What’s a reasonable as or negotiation? Currently looking at new opportunities and hoping for some more insight about benefits

like

I have 50k in my 401k account and I am planning to move back to India by next year, I plan to be vested in the 401k for long term, hopefully till maturity. In that case, when I withdraw my 401k amount after 30 years will I be liable to pay taxes in India or USA?and will it make sense to convert the 401k to roth IRA?

like

Just got a big raise (50%+) starting July 1st that is going to move me out of income limits for direct Roth IRA contributions (prior to raise was under the limit) even with maxed pretax 401k and HSA - however I am already halfway through contributions ($3000). What options do I have to address these excess contributions?

like

Pre tax 401k or Roth and what % did you contribute?

like

How can I not work to live - I want 10m as fast as possible and go retire. Working for another 30 years sounds miserable

likefunny

What % do you contribute to your 401k and what's your age?

like

Hi 🐠 I’m looking for referrals as a healthcare consultant. 5 years commercial experience in hospitals, nonprofit and private clinics. I have an MBA and CSM and my focus is on health IT! Based in DC

like

Is it common for partners to retire early? (let’s say before 50)

likehelpful

Do things like the $1500 gift from Microsoft get lumped into "benefits"? And are there any companies that you should expect more things like that from, and is it a significant factor when taking a job?

like

Traditional 401k Vs Traditional IRA Vs Roth 401k vs Roth IRA. What's the best?

like

🐠 from Accenture Germany: what are some of the best corporate benefits at the firm? Do you guys offer discounts on Gym membership or have car lease programs? Thanks in advance😊

like

I heard PwC is going to increase their presence in Nashville and go after more of the healthcare market. Has anyone else heard that?

I maxed out the pretax limit (19k) on my 401k and then started investing in my brokerage account. 140 annual base salary. Am I doing it wrong? Should I look into this Backdoor IRA thing ?

like

How do I retire at 45? Give me all your tips.

like

Anyone have an au pair and do the dependent reimbursement account? I don’t know how to do the reimbursement form. We pay her a stipend every week but also paid agency fees.

like

Additional Posts

How often should you check in with a recruiter if they haven’t been responsive? Is it bad to reach directly to the hiring manager?

like
likehelpful

The BEACH or the BENCH? 🤔

likefunny

How much do recruiters decide who gets a first round interview? Who screens apps?

like

Ladies in this bowl - I have an interview with McKinsey coming up, what is appropriate dress attire? Not in the mood to wear a blazer for 4 hours during a Power Round…

like

Piggybacking off the manager post below. SA3 currently at 115k NYC. What kinds of exit opportunities are available for me? Should I stay for promotion? What would I reasonably get?

likefunny

Anyone familiar with the AWS business value economics team? Please share thoughts on culture, team, WLB, comp, etc. Thanks!

like

Anyone find it really difficult to work with super attractive people (question for males and females)? No? Just me? Ok, nevermind.

like

Long post that’s going to spill into the comments so please bear with me 😅 Anyone having a problem with being overlooked on their team? I worked on implementing a new system, recruiting app teams to test it out, & creating a thorough guide to help people learn it. Back to back meetings with clients & different teams; I was dedicated to this project for months. My coworker added a 2-pg FAQ section & essentially got credit for doing everything even after I shared my contributions to my supervisor.

like

Has your company gone remote full time? Do you think it will?

like

There are several children in my classroom who keep having tech issues. How can I support them without taking away from instruction time?

like

What's the best consulting firms for H1B folks who have studied masters in STEM here? Got a cousin graduating this fall and he needs to know H1B/GC policies.

like

Anyone else feel like their actual work is very disconnected from their paycheck? If I do a great job and create a ton of value for the client I’ll get a maximum of a 15% TC increase YOY (much less due to covid). Similarly if I do the absolute minimum it’s really hard to be fired since I’m in a hot market and they can’t decrease my TC without cutting my base pay (which I’m 99% sure they won’t do). And my raise/bonus won’t even necessarily be indicative of my performance anyways.

like

Kinda hoping a get a crappy raise this year so I have an easy excuse to quit 🤣

likefunny
like

What income would you be "satisfied" with making until you retire?

like

Strongly prefer working in-person (I’m a people person) but potentially have a great too-good-to-turn-down opportunity that would be fully remote. Advice on how to make WFH better?

like

Does anyone have a virtual happy hour activity that was actually fun, other than drinking some expensed booze.

like

How would you culturally fit the big 4 into MBB and which big 4 gets left out?

like

Take a look at Lessontrader.com. An online marketplace for teachers to buy and sell resources. All of your hard earned work for virtual learning can be posted on lessontrader and make you some extra money! FREE membership with discount code “vipfree”. Once you upload a lesson there is nothing else needed. Just wait and collect once someone buys your stuff.

Post Photo
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

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.