| Fund which one 1st 401K or Roth |
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knowhowiroll
New Poster
Cash: $ 0.45
Posts: 2
Joined: 08 Nov 2007
Location: Michigan
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| Fund which one 1st 401K or Roth |
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Assuming you could not max both out which is better to max out 1st. 401K or Roth IRA.
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Thu Nov 08, 2007 2:03 am |
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pf101
Senior Member
Cash: $ 62.25
Posts: 311
Joined: 12 Sep 2007
Location: Portland, OR
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Does your company have a match?
The rule of thumb for retirement saving is this:
1 - invest in 401k to company match limit
2 - max out Roth IRA
3 - max out 401k
4 - invest in taxable account
this is assuming you have no high rate consumer debt. If you do have debt, paying that off should be step 2. So, if your company doesn't match, do the Roth first then put any extra into the 401k. If they do match, do the 401k first to get the whole match and then put any extra into the Roth.
Personal Finance 101
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Thu Nov 08, 2007 2:37 am |
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knowhowiroll
New Poster
Cash: $ 0.45
Posts: 2
Joined: 08 Nov 2007
Location: Michigan
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Yes, the company I work for does match up to 5% of base pay. Thank you
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Thu Nov 08, 2007 5:18 pm |
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