Alabama thread!

yes, absolutely. there's no argument there. I was simply saying the statement "never go over the company match" isn't good advice lol

 

To each the own but investing in 401k in my opinion is always a good thing no matter how much you invest or weather the company matches it or not.

 

That will definitely cycle with the stock market, but I certainly hope it stays that way.

 

When looking at that always look at long term cycles not short

 

So what is the higher amount? The money you invest, or the growth? For most people its the growth. Therefore paying tax on the $200,000 you invest and getting a free $2,000,000 in 30 years is a much better deal than not paying tax on the $200,000 and paying tax on the $2,000,000.

And yes, a Roth is limited to $5,500 per year.....per person. So $5,500 for you, $5,500 for your wife, $5,500 for each kid.

https://www.daveramsey.com/blog/roth-ira-101 Don't trust me. See what Dave says about it.

And a 401 is no safer than a Roth. They both have the same available investments to choose from. In fact the company 401 usually limits the things you can buy to funds they get a kickback from.

 

so he says after maxing a roth then go back and put into the 401k.

yet you said NEVER. that was the word I was disputing...

 

Fair enough. But if I were maxing the 401K match and maxing all the Roths I can get then I'd start buying real estate next.

 

sure. to each their own on the choices, but we can all agree the only dumb decision is not investing for retirement lol.

I just didn't want the "never go over the match" advice to stick for anybody because if you can, then you should go over.

 

Yes but the company will match that $200,000 with another $200,000 and part of the tax you pay on withdrawal will be the tax you would have paid if you did not invest in 401K

 

If the only investment advise they are reading is on TW then God help them.

 

We were talking about investing past the percentage the company will match.

 

So I got 300$ Visa gift card to sign up with AT&T and also just found out I never agreed to renew my contract with Comcast. Ergo, I don't have to use the 300$ gift card to pay cancellation fees. I better go ahead and get my skid with this free money now....plus that will finish my T4R for good til its paid off.

 

OK, so I invest $100 in 401k and it draws returns compared to the same $100 I spend on Roth which after tax will be say $80.
Returns on $100 401k over 30 years compared to returns on $80 in Roth. That extra 20% invested will make up for the taxes on withdrawal

 

Not exactly true.

Roth is money that has already been taxed, therefore all returns are tax exempt.

 

But you have no returns on the taxes you paid on the money going into the Roth but you do have returns on the taxes you would have paid going into a 401K

 

That seems really nice.

Fully family off-road comfy.

 

But you have to pay the taxes on those earnings when you withdraw.

 

but he's saying the tax break you get when you invest covers/helps that.

 

Dave Ramsey is good, but his customer base is people who struggle on debt.

I don’t do debt, not without leverage on taxes which is something I’m looking into for buying a house and mortgaging it.

Debt is dumb unless it can turn a profit.

My max is 18k as everyone else’s. My company doesn’t match, but they do profit share 3% a year which they’ve never missed a year since it was implemented.

There’s so much to investing and tax deductions that looking now. It makes sense to buy a house within reasonable interest to your taxes per year just for the deduction. Then there’s only certain taxes the deduction applies too.

I’m learning more now than I did in college for finance. I guess this is accounting stuff tho

Anyone here a cpa and wanna private message.

 

Yes but the taxes make money before you do.
I am not saying one is better that the other. Scotty's point was you can't say contributing more than company match is not a good idea. And he is right, unless you know the future you can't really say that, you can argue it both ways. But with most Roth's it is up to you to invest money you have in your hand and with most 401k's it is taken out before you get your hands on it. That makes it less likely for you to just say I will invest later.