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EStreetJoe · Jan 17, 2007

three_bags_full said:

EStreetJoe said:

three_bags_full said:

If you have a 401K available, I suggest maxing it out, just to the point of getting all the company's match, and then spreading it over four types of mutual funds: growth, growth and income, agressive growth and international. Especially if you have a long enough investment horizon.
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Disagree slightly, if you have the 401k available, put in as much as you can, even if it exceeds the company match.
If you can contribute beyond the company match, do it. It's all tax free dollars going in. My company's plan allows me to contribute up to 25% of my pay each week, I do. If I only contributed to my company max, I'd be putting in $180-$185 or so less per week, or about $9500-$9600 less per year. Assuming I do a poor job of picking funds and I only get an average 8% rate of return over 20 years, it means I'd be missing out on $100,000. If you can contribute the extra money, do it.
I make enough/live frugally enough, where I can contribute the max to my Roth IRA each year as well.
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The reason I suggest backing off a 401K at the company-match level is because they are traditionally very limited. Once the company match level is met, you can have a ton more opportunities and tax-free growth (Roth) or tax-deferred growth (traditional).

You just have more options.
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If money is tight, definitely follow your advice. If you've got a little extra, can't hurt to put it into the 401k.

PeteyPirate · Jan 17, 2007

Got 12 percent on a mutual fund last year. My advice: take some money to a professional and let them advise you. I would never deign to believe that I know what I'm doing, and I have an MBA.

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