General Discussion > Essentially Flyertalk
New To Investing Thread
ben ji:
Side shot from the General Advice thread.... See below for ben ji's investing advice.
1. Contribute at least the max that your employer will match to your company 401k....Does not matter how poor you are or how much student debt you have, this is free money.
2. Once you have contributed to enough to get the full match to your company 401k and you still have more money to invest you have some options. You can keep putting more money in the 401k or you can open a Roth IRA.
But ben ji, why put it in a roth ira and not keep it in the 401k?
Well....
1. Roth IRA is after tax money and will not be taxed when you take it in retirement. If you are just starting out you will probably be a lower tax rate now than when you retire.
2. You have more investment options with an IRA. This allows you to find funds with lower expense ratio's and more targeted investing than your 401k Options.
0.42:
buy low, sell high
Rage Against the McKee:
I contribute enough to my 401k to max out the employer match, and then I use the rest of my spare money purchasing stocks.
Emo EMAW:
--- Quote from: Nuts Kicked on April 16, 2013, 10:45:40 AM ---I contribute enough to my 401k to max out the employer match, and then I use the rest of my spare money purchasing stocks.
--- End quote ---
General trading account? Wife and I been maxing the Roth IRA contribution the last few years and now we wish we would have been doing just a general trading account for the purpose of pulling out cash to buy a new house.
'taterblast:
of all the "wealth" i have to my name currently, a little less than 20% of it is actual cash that i could spend right now.
is this bad?
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