Alabama thread!

"never want to go over the match" just isn't true. the real desire is to max out your contribution (I think it's an $18k limit per year), and get growth off your investments. having a Roth along with it is the desire too, but then that maxes at like $5500 a year. there is not a good reason to "not go over the match"

 

The argument would be that you want to maximize return on investment and 401k might not be the best path to that. Creating a portfolio might be the best avenue.

 

a 401k is a very safe avenue to do it though. I'm not saying don't do other stuff, but to say "never go over the company match" is just not a good philosophy.

 

That’s very true! It is safe, high risk high reward, low risk low reward, tis whatever you prefer. I like living on the wild side

 

Easy to do when you have the money to do it...

 

I like safe right now. Also, the tax break it provides to put some into the 401k is beneficial at this time for me. My company matches 6% for 6%...but I've been putting in 7%...and just upped it to 12%!!

I am most likely going to open a Roth IRA next year.

 

Think about what you said, 401k is not taxed going in but Roth is.
So with 401K the tax money goes in and draws returns and interest the entire time it is in the account but Roth taxes goes to the government and you never see any retguns on that money.
So if you have $100 going to 401k you get returns for $100 for all the time it is in there, with Roth it is taxed so you have less than $100 going in so your returns are based on less that $100.

 

this man retired early....

 

@baldridge @Toyotacrawler would you guys rather meet on Saturday when everyone can come

 

Check it out, when you reduce your taxable income by investing in 401k it really doesn't cost you as much as you would think, part of the money you invest will be money you would have given the government in taxes.

 

this for sure.

 

I don't see how anyone can not invest in a 401k, the return on your money is amazing.

 

it is for sure. hence why I just upped to 12% lol

 

You want regret it

 

Oh I do 401k just what the company matches though.

 

But your doing it

 

yeah I think all involved in the discussion are doing it, but the point was made to not go over the company match...and I think that's just not good advice..

 

I also think it depends on how much money you are working with, the actual % matched by company, and other avenues you may want to put your money, ie. roth, stocks, etc.

 

There are a million different variables to this. Can we all agree on that?

 

right, obviously you AT LEAST want to match the company. but my 401k is doing so well, and the ROI is so large right now there wasn't any logical reason not to raise my contribution.