401k max out or Roth ?

[former]

49 minutes ago, sarvayogi said:

401k limit 23500, roth is 6500 and roth is 4150 ..  for 2 people 65-70k.

I put 15 % tax bracket as example...so roughly 55k-60k ... not exact numbers

u can take loan on 401k upto 50k and payoff home mortgage too. Did u check that option?

idi inko daridram as you are loosing 401k growth benefits and again stuck to employer as you have to pay in full to change employer..so you go into the slave mentality of staying 3-4 years with same employer to clear it off

 

If you are maxing out 401K every year, getting a 50K loan is not too much to deteriorate the Growth. 

[sarvayogi]

2 hours ago, Vaaaampire said:

15% tax bracket vallu 70k 401k lo afford cheyyagalguthara assalu? Anduko roth after tax amount anukunta. 

enti 50k loan ki 3-4 years stuck aa employer daggara? Lol lol. do u even know that u get 3-4 months time to clear off loan after company change? In those 3 months u can move ur entire 401k with loan to new company 401k. Offcourse not all policies support that. But clear the loan and take a new loan.  401k growth benefits loose avvadam endi vayya. R u seriously expecting growth benefits even for the loan amount? 

ori nee ayya

70k is not 401k its 401k + roth IRA + HSA..read my message

50k loan from 401k teeskunna...1 month lo lepi bengadu employer..now you will pay off 50k in 4 months??

If your idea is to take a loan to clear another loan..then god knows where will you end.

401k growth benefits loose avvadam endi vayya. R u seriously expecting growth benefits even for the loan amount?  -- 100k 401k lonchi 50k lepavu...aa time lo Index funds least value unte you are loosing opportunity to buy low sell high

 

[Vaaaampire]

3 minutes ago, sarvayogi said:

ori nee ayya

70k is not 401k its 401k + roth IRA + HSA..read my message

50k loan from 401k teeskunna...1 month lo lepi bengadu employer..now you will pay off 50k in 4 months??

If your idea is to take a loan to clear another loan..then god knows where will you end.

401k growth benefits loose avvadam endi vayya. R u seriously expecting growth benefits even for the loan amount?  -- 100k 401k lonchi 50k lepavu...aa time lo Index funds least value unte you are loosing opportunity to buy low sell high

 

Haha. Avasaraniki stocks ammi avi lesthey thooch antava?

neeku sadavadam kooda raadha?

15% tax bracket vallu 70k invest etta chestharu ani adigina q kooda ardham kaledha?

neeku financial knowledge ledhu kaani genaralized statements iyyadam maneseyyi

[SaradaChinnodu]

20 hours ago, vatchesa said:

5% 401k ki contributing with 4% employer matching max

so in general, 401k max out pettukovatam better or Roth IRA lo pettadam better?

my suggestion

1. 401K traditional (pre tax) - upto employer match

2. HSA

3. Roth IRA as it grows tax free

4. 401K traditional (pre tax) - max out or invest the same post tax in S&P500 index for "anytime liquidity" or individual stocks if you know what you are doing. 

[sarvayogi]

2 minutes ago, Vaaaampire said:

Haha. Avasaraniki stocks ammi avi lesthey thooch antava?

neeku sadavadam kooda raadha?

15% tax bracket vallu 70k invest etta chestharu ani adigina q kooda ardham kaledha?

neeku financial knowledge ledhu kaani genaralized statements iyyadam maneseyyi

bekaar naayala

15% tax bracket means not 15.0000000000000000 konchem atu itu anuko 

ok nee kosam typing....15-20% tax bracket..chaala

point ardham chesko ra bewakoof... nenu 2+3 = 5 ante nuvvu ledu 5.0000000000 anela unnav

[perugu_vada]

I will only invest in 401k that I can afford to .. future ani cheppi ipudu year lo 1 or 2 trips veyatam ki backstep vesthu .. bills count chesthuu undatam ante I don’t like it

[HugoStrange]

20 hours ago, vatchesa said:

5% 401k ki contributing with 4% employer matching max

so in general, 401k max out pettukovatam better or Roth IRA lo pettadam better?

always do 401k till company match, then Max Roth IRA and then if u have surplus max 401k

[HugoStrange]

16 hours ago, Vaaaampire said:

U dont pay any tax on 401k if u take it out at retirement 

no buddy, u will pay taxes on 401k after u retire. Tax brackets might be low as u dont have any income but the amount u take out is taxable.

[HugoStrange]

4 hours ago, Vaaaampire said:

Max 401k contribution for family is 46k. If the company matches 50%, then its 69k.

46k after tax(~30%) comes to 33k.

its upto individual to decide if they want 33k after tax money or save 46-69k(based on employer contribution).

lot of people dont explore(including me) options to invest 401k money in index funds or other bonds. I subscribed to blooom for 2 years beforw they shutting down and saw good returns. 

you can take loan on 401k upto 50k with interest which gets added to the 401k itself.

 

my personal opinion: opt in 401k. Even if things go south, u will have something when u retire. 

 

401k ee company full amount ki match chesthundi kaka, most companies will do upto 6% that too 50% or 75%.  Employer contribution over expect chesthunnav

[Vaaaampire]

53 minutes ago, sarvayogi said:

bekaar naayala

15% tax bracket means not 15.0000000000000000 konchem atu itu anuko 

ok nee kosam typing....15-20% tax bracket..chaala

point ardham chesko ra bewakoof... nenu 2+3 = 5 ante nuvvu ledu 5.0000000000 anela unnav

Cheppu tho kodtha pichi kukka. G pagilindi natakalu thengithey

[Vaaaampire]

41 minutes ago, HugoStrange said:

401k ee company full amount ki match chesthundi kaka, most companies will do upto 6% that too 50% or 75%.  Employer contribution over expect chesthunnav

Nenu 50% ey vesina kada anna. Couple ki 46k max. Daantlo 50% antey 23k ney kada

[Vaaaampire]

46 minutes ago, HugoStrange said:

no buddy, u will pay taxes on 401k after u retire. Tax brackets might be low as u dont have any income but the amount u take out is taxable.

Yaa ur right. I mis phrased 

[HugoStrange]

5 minutes ago, Vaaaampire said:

Nenu 50% ey vesina kada anna. Couple ki 46k max. Daantlo 50% antey 23k ney kada

again, 50% or 75% match upto 6% of your salary untundi general ga. For 150K salary 6% ante 9k ki matrame match chestharu rest 14k (total of 23K) ki no match from company. Means 9k ki u will get either 4.5k or 6k. 

50% tho thisukunte 23k nuvu chesthe mee company only 4.5k chesthundi. not 11.5k

[Vaaaampire]

1 minute ago, HugoStrange said:

again, 50% or 75% match upto 6% of your salary untundi general ga. For 150K salary 6% ante 9k ki matrame match chestharu rest 14k (total of 23K) ki no match from company. Means 9k ki u will get either 4.5k or 6k. 

50% tho thisukunte 23k nuvu chesthe mee company only 4.5k chesthundi. not 11.5k

Got ur point. Most of the companies moved to 50% match.
if some one is paying 50% upto 6% salary, then the company benefits are bad buddy.  
this is true atleast with the companies i interviewed so far. Splunk is the only one which has worst 401k. 

[Konebhar6]

54 minutes ago, perugu_vada said:

I will only invest in 401k that I can afford to .. future ani cheppi ipudu year lo 1 or 2 trips veyatam ki backstep vesthu .. bills count chesthuu undatam ante I don’t like it

This is the basic thing most people miss. Certainly put 401k money to match employers contribution. After that, how much to put is your choice, lifestyle and means of income. Do not compromise your current to safeguard your future.

Also if you have means where you have the capability to generate more income compared to 401k funds, 401k is not for you. However, There is always risk and reward.

401K is to secure your future.