Do the Roth,not the after tax.
Prudential Retirement
- Thread starter 0RW0
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twoweeled
Well-Known Member
The 5% after tax, is taxed. But it's just more money saved. I understand and accept, there is no tax benefit - but the more money saved benefit is still there. We as employees, will never reach the point of saying:
"Damn! I think I saved too much money!!!
Jkloc420
Do you need an air compressor or tire gauge
twoweeled
Well-Known Member
Yep!
Jkloc420
Do you need an air compressor or tire gauge
Jackburton
Gone Fish'n
The after tax section is nothing more than a savings account. Not sure why you wouldn't just open one and move money there every Friday? If you are looking at using it as an investment vehicle, you still pay taxes on the growth, just as if you opened your own investment account. I'm not seeing any benefit besides the direct withdrawal from your paycheck to the account.
twoweeled
Well-Known Member
If your the type of person who is disciplined enough to put a certain amount of money into a savings account and never touch it, well you are absolutely correct. I'm pretty sure the majority of us would not do that. I know I wouldn't have. It just makes it a little easier, and helps keep me on track.
But if your disciplined enough, my hat is off to you.
your better than I am!!
realbrown1
Annoy a liberal today. Hit them with facts.
Roth after tax grows tax free.
That's a little different from a savings account where earnings are taxable.
Jackburton
Gone Fish'n
I understand the difference, the question I posed is what is the draw to do any in an after tax account (not Roth401k)
twoweeled
Well-Known Member
A Roth is different, you are correct. That probably is a good idea. There are restrictions on income I believe. I'm not sure what they are. But a Roth is Better than after tax, if your eligible. I'd say max your 401K, max your Roth, then Max into after tax - in that order.
Good luck at getting the wife to do the same!
Brownslave688
You want a toe? I can get you a toe.
Or just do 20% Roth like me.
Brownslave688
You want a toe? I can get you a toe.
I told my wife from day one we will set it up so you max out your 401k. Never miss it if it isn't there. Between her company match and profit sharing it's pretty much a 100% match.A Roth is different, you are correct. That probably is a good idea. There are restrictions on income I believe. I'm not sure what they are. But a Roth is Better than after tax, if your eligible. I'd say max your 401K, max your Roth, then Max into after tax - in that order.
Good luck at getting the wife to do the same!
All if our spouses don't make the big bucks
Brownslave688
You want a toe? I can get you a toe.
There are a lot of places you can live just fine on $800 a week thoigh.
Places with dirt roads, that you get stuck on?
Brownslave688
You want a toe? I can get you a toe.
And a new truck.
Brownslave688
You want a toe? I can get you a toe.
Honestly though I see guys bringing home $1500 a week even maxing out a Roth 401k still keeps them above $1000
Too many guys don't save anything
Brownslave688
You want a toe? I can get you a toe.
This guy is 60 years old and has less company time than me...... I'm like dude I would be socking away everything I can. Who wants to work til they die?
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