UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next
Author: JLC Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 78702  
Subject: Re: 401K vs Roth vs Taxable investment Date: 4/20/2010 9:02 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
I few rules of thumb.

If your company offers a match to 401k contributions, ALWAYS put enough money in to get the maximum match. Thats free money you're leaving on the table if you don't.

As long as you qualify for a Roth IRA do it. If you no longer qualify, a nondeductable IRA is the next best thing. At least there your cap gains and dividends grow tax defered.

After you've maxed out your tax advantaged plans, then open a regular brokerage account.

All this is assuming you have an emergency fund of 3-6 months living expenses saved and all credit cards are paid off.

Trying to guess what the tax brackets, etc., will be 30 years from now is futile. Having things in different tax treated accounts will not give you the best possible outcome but it will also not give you the worst possible outcome. And it gives you flexability.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Berkshire Hathaway

Questioning Amazon's Financials
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.