The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: IRA vs. HSA? Date:  12/7/2004  9:57 PM
Author:  decath Number:  43454 of 88045

By fully investing the max in my 401k, I'm able to keep most of my income in the 15% tax bracket. With a mortgage, outragious property taxes, 3 kids, large charitable deductions and taking advantage of the full $13,000 401k contribution in 2004, only a few thousand are taxed at 25%. If I put the $11,000 that is not matched by my employer in a taxable account, $2750 ($11,000 * .25) would come out at year end for taxes.

Since I have numerous choices in my 401k, it works for me. No vanguard funds but a growth fund with expenses of .040% and a S&P fund at .080%.

I am able to max out my ROTH's. I used to put an additonal few thousand a year in taxable investments (individual stocks) but decided to start building up my E-Fund to 2 years of living expenses instead. I want to be ready for a possible career change in a few years.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us