Wednesday, December 5, 2012

Is it wiser to max out a 401k or just do the minimum and invest the ...

I have read and heard *alot* about the possibility of *higher* , not lower, taxes at retirement, making me think hard as to whether I should keep maxing my 401k or not. I wonder about this new idea that everyone should put the minimum 401k to get the max employer match, max out a RothIRA, then put all the rest in aftertax low cost investments (ie, Vanguard total market funds,etc). How likely is it that most people will pay *more* taxes after retirement than they are now (while working)
I bring in about $100-120k a year, age 43, and have been maxing out my 401k for a number of years, and just last year made the decision to also fund 2xRothIRA?s fully each year as well (one for myself and one for my wife). Should I keep maxing my 401k or use this alternate plan so many books are pushing aound ?
Tnx! Confused!

Source: http://rothira.solve-up.com/roth-ira/is-it-wiser-to-max-out-a-401k-or-just-do-the-minimum-and-invest-the-rest-in-after-tax-investments/

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