UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next
Author: LooseChange One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75887  
Subject: Re: What comes first? Date: 2/16/2001 6:26 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My preference is to change the order from Ringfinger's ordering.

1. max 401(k) or 403(b)
2. traditional IRA (if AGI permits)
3. Roth IRA
4. Possibly other tax deferred accounts such as annuity accounts - this really depends upon your situation and should be considered closely before jumping in.
5. taxable account

I prefer to max out my 401(k) because it gives you a lot of bang for the short term buck even if you go beyond the matching percentage. Every dollar that goes into a 401(k) reduces your AGI (and taxable income) dollar for dollar. So you get to save immediate tax dollars that could then be used to fund a traditional or Roth IRA. Almost like a one-two punch. My general philosophy is to delay paying any tax as long as possible, so I strive to maximize vehicles which defer tax in the current tax year first. The other vehicles fall into place after that.

Regards,
LooseChange
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement