Title says it all. As of now I have around 100K in Fidelity 401k account but my new employer doesn't offer any matching plans. I'm planning to invest in Real Estate end of next year so piling up some cash and not thinking about retiring in US. So is it a good idea to skip 401k for now or am I missing anything in this personal scenario? Any expert suggestions are welcome in the comments. Thanks TC: 200K (LCOL) Exp: 9yrs #personalfinance #investments #401k
What's your family situation?
As of now just me and my spouse. So I guess it's time to take few risks :)
Ya I think that's fine
Lets say max limit is 22000. If you contribute you get 22000 to invest (assuming tax bracket would be lower in retirement) vs if you don’t- you get 15400 to invest considering 30% tax bracket now. So if you are not in need of money - its a good bet.
If its just a ~7000 difference then I wouldn't contribute to 401k as of now since my returns will be definitely more in my Real Estate by year end.
“Just” $7000? Why would you be willing to burn $7000 in a tax fire? Or, that $7000 is an immediate 31% return on your $22500 contribution. Per year. Do the 401k, you only get $22500/year so every year you don’t contribute, you can’t go back and make it up.
Speaking from experience, any employer that won't match is probably going to treat you like crap. Keep your eyes open for your next role. As far as your question. I think the max you can contribute on an employer 401k is higher then a personal before tax account. Although when I worked for a company that did that I didn't bother contributing.
They are a new startup still and they will be starting employer matching program from 2024
My current company doesn't match but I do contribute like 3% not a lot though
Max that shit out!!
You would be saving around 7k in taxes if you contribute 22k to 401k. 7k compunder over 30 years with 8% returns is 70k (assuming you are in thirties) Do u want to loose that ? If you don't need the money now, I would go with 401k
S&P 500 returns over last 100 years is 10%
I don’t know. Should you?