Originally posted by matagordian
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In general i would agree with you. But i would suggest something to think about first. Before you max out your 401k (most people don’t), see if you qualify for a Roth IRA. If the answer is that you do qualify then I would place as much into your 401k as to get the match from your employer and then from there put whatever else into the Roth. EX.
1. You qualify for a Roth IRA
2. If you contribute 8k per year into your retirement and your employer matches 4K of that.
3. Put the 4K of your own money plus the employer matches 4K, so you have 8k in 401k assets.
4. You already decided to contribute 8k of your own money which means you still have 4K to contribute. This 4K should go into a Roth if you qualify. The reason is that this money is after tax contributions and will grow for you TAX FREE.
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