CREATING MILLIONAIRES: POSTERS AIDING WEALTH GROWTH

[↓R↑LYB]

@bdizzle @BaldingSoHard My company just got bought. Right now Schwaab is managing my 401k but I now have the option for a ROTH IRA. Should I roll my 401K into a ROTH IRA or do both? What is the best strategy?

If your company matches your contribution, then contribute to your 401k up until the match (employer contributions is basically free money). If you still have extra money to save, put it into your Roth.

If your company doesn't match, fund your Roth instead.

 

[dtownreppin214]

If your company matches your contribution, then contribute to your 401k up until the max (employer contributions is basically free money). If you still have extra money to save, put it into your Roth.

If your company doesn't match, fund your Roth instead.

my company matches dollar for dollar. should I max that out before I touch the roth?

 

[IAmGettingAMailOrderBride]

To anyone reading this thread right now, if you are in your 20's and don't have an IRA, go to Vanguard right now and sign up. It will take 10 mins and it'll be one of the best decisions you've ever made. Even if you're in your 30's, it's still a good idea, but if you're in your 20's it's a MUST.

how much can I put in it?

- blackierobinson

 

[↓R↑LYB]

my company matches dollar for dollar. should I max that out before I touch the roth?

Absolutely. That's a 100% return on your investment before you even start compounding interest

 

[↓R↑LYB]

how much can I put in it?

- blackierobinson

It depends on your age. $5500 if you're under 50, $6500 over 50.

Google it to make sure

EDIT: @BlackieRobinson here's the link from the IRS

Amount of Roth IRA Contributions That You Can Make For 2015

 

[Silkk]

If your company matches your contribution, then contribute to your 401k up until the match (employer contributions is basically free money). If you still have extra money to save, put it into your Roth.

If your company doesn't match, fund your Roth instead.

Just to be sure, i can max out my 401k & Roth if i want right?

 

[↓R↑LYB]

In cuz I have a Roth but that's it

You're doing better than most

 

[↓R↑LYB]

Just to be sure, i can max out my 401k & Roth if i want right?

Yep, I had a 401k and a Roth cooking at the same time

shyt you can even open up a SEP IRA on top of it if you're balling like that

 

[Silkk]

Yep, I had a 401k and a Roth cooking at the same time

shyt you can even open up a SEP IRA on top of it if you're balling like that

Whats that?

 

[↓R↑LYB]

Whats that?

It's geared mostly towards people who are self employed. Instead of the max contribution of 5500 that the Roth has, it has a max of 53,000 a year that you can contribute.

It doesn't grow tax free like a Roth does unfortunately.

My goal is to make enough so that I can max out my SEP every year

 

[Silkk]

Wish this thread was made a year ago

 

[↓R↑LYB]

Wish this thread was made a year ago

Just be glad it wasn't made 10 years from now

That's about 800k in interest breh

 

[dtownreppin214]

Absolutely. That's a 100% return on your investment before you even start compounding interest

So if I understand correctly, there is no point in contributing to a 401k PAST the max that my company will match (6%).....that money is better served in a ROTH?

 

[↓R↑LYB]

So if I understand correctly, there is no point in contributing to a 401k PAST the max that my company will match (6%).....that money is better served in a ROTH?

That's correct. The reason is because the Roth grows tax free. So if you have 1 mil in a 401k and 1 mil in a roth, you'll get taxed when you withdraw money from the 401k, but with the Roth the entire mil is yours.

 

[dtownreppin214]

That's correct. The reason is because the Roth grows tax free. So if you have 1 mil in a 401k and 1 mil in a roth, you'll get taxed when you withdraw money from the 401k, but with the Roth the entire mil is yours.

Appreciate it bro.