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Old 06-21-2013, 03:55 PM   #8
Wraisil
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Join Date: Apr 2004
Location: Acworth, GA
Posts: 216
My Ride: 2010 Infiniti G37
Quote:
Originally Posted by iloveyou View Post
My company matches up to 5%. So I should max out my Roth and do 5% in 401k and any left over put in my 401 K even though it wont be matched ?
First step (when available to you) is to get the full match. Think of their match as part of your ROI and if they're matching 100% up to 5% then your 5% investment already has a 100% ROI. Then max out the Roth for the tax advantages it has. Finally is to put whatever else you can into the 401(k) to finish maximizing your tax-advantage. Don't, however, put more than the max pre-tax contribution into your 401(k). If/when you get to that point, the extra should go to an investment account that doesn't have the restrictions that IRA's/401(k)'s have.
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