Brownfan80
In the Starting Line-Up
- Joined
- Sep 13, 2004
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The bottom line :
If your company has a 401K you HAVE TO max it out. Any matching is great but it's pre tax so you have HUGE $$$.
If not, or if you want to go in addition to, Roth IRAs are great. No tax benefit now but you all the earnings are tax FREE (not deferred) when you retire. Every cent in the account is yours and when you take it out the government gets NOTHING.
Traditional IRAs are fine, they're pre tax now but taxed when you get the money out. Much like 401Ks but no matching.
Thank you so much for the advice BF. I don't know that I have the extra money to max out my 401k right now, but I'm def getting one started (a little late in the game at 27, but you gotta start somewhere). I'll increase it as some of my current bills fall off (several of them will over the next few months) and as my pay increases.