401k contribution

Microsoft / Product
woodlandzo

Go to company page Microsoft Product

 woodlandzo
Nov 28, 2021 18 Comments

I recently join a startup which doesn’t offer 401k match. In this case, do I still max out my pretax 401k? How about post tax 401k? I want to retire early so am wondering what is better investment strategy now.

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  • New
    JJQQ

    New

    JJQQ
    - 401K
    - Roth
    - ESPP if available (employee stock purchasing plan)
    - Private investment account or wealth Mgr
    - Crypto

    In order
    Nov 28, 2021 8
  • Still worth given tax discount and tax free growth.
    Nov 28, 2021 0
  • Do roth 401k unless you're 60+. You'll pay taxes now but not on the gain. The taxrate is nonlinear so you end up with more if you model it out.
    Nov 28, 2021 4
    • Google
      blindly__

      Go to company page Google

      blindly__
      How do these "models" affect anything? The tax brackets dominate this decision. It doesn't even matter whether you're paying up front or later if the tax rate is the same. Paying 23% of your principle now or 23% after all your investment gains, you end up with the same amount either way.
      Nov 28, 2021
    • Microsoft / Eng
      spookyszn🎃

      Go to company page Microsoft Eng

      PRE
      Microsoft
       spookyszn🎃
      Given the current political climate + direction we're heading in, I'd be shocked if taxes weren't higher across all brackets within ~10 years. That's something to consider too
      Nov 28, 2021
  • Facebook
    Metaholic

    Go to company page Facebook

    BIO
    350k + Options Trader + Automated Trading
    Metaholic
    You save additional 30-40% (depending on your state) of 20500 in tax via pre-tax. Maxing out pre-tax will make you pay ~6k less tax to Uncle Sam each year. You can invest this further and compound it to see how much return you would make over the years.

    Of course company match would have been better, but this could help as well.
    Nov 28, 2021 0
  • Apple
    sfghfc

    Go to company page Apple

    sfghfc
    Not a good idea. In order to avoid tax, you keep the money there for about 20 years
    Nov 28, 2021 0