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My employer offers a 401k with a 0% contribution. Is there any point in enrolling in this over signing up for Wealthfront or Betterment? On the topic of Wealthfront and Betterment is there any point to enrolling in them outside of not having to ever touch a trading account?
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Nov 27, 2014 01:41
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| # ¿ May 14, 2024 00:37 |
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Should I be maxing out the annual contribution of the 401k before investing my remaining spare income elsewhere?
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Nov 27, 2014 01:55
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I'm under 30, make decent money, and have a Trad IRA in Betterment. Its limit is $5500 or something and I can max that out with ease. Once that is maxed out I've been putting at least 4x the ira max in a taxable account per year. My employer doesn't offer a 401k. Is there something else I should be doing better? I hate the feeling of getting screwed on taxes every year for what I'm calling my "retirement"
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Jan 24, 2018 14:48
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I'm 35 and married, taxed at 32%. I fund my employer 401k to $23k/yr with a 1to1 15% match. The only fund in the 401k is Vanguard Target Year 2050 and the balance is 260k. Then I have a taxable brokerage account with 55k in it split 60/30/10 (VOO/VIOO/VXUS) with DRIP enabled on the three. My tax bracket likely will not be higher than this when I retire (ideally at age 60). My 401k (through John Hancock) does not have a mega backdoor roth option (or if it does, idk what I'm looking for in the plan document). 1) Should I open a traditional IRA and max it before adding funds to the taxable brokerage account? If so, what funds to select? Doesn't seem I can open one at Ally or TD Ameritrade, but I imagine I could once my TD account transfers to Schwab in May. 2) Am I using my brokerage account correctly? Should DRIP be enabled for those accounts? Anything wrong with the chosen ETFs or split? 3) I received a 100k cash bonus (one time work related event, won't happen again). How best to get this money invested, lump sum? spread out over the rest of the year/weekly?
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Mar 26, 2024 01:45
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drk posted:Are you eligible to save on taxes? No Trad IRA deduction over $143k AGI if you are MFJ and have a 401k: https://www.irs.gov/publications/p590a#en_US_2023_publink100074297 MFJ w/ 401k and household agi >240k, spouse is not currently eligible for employer 401k.
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Mar 26, 2024 02:27
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