401k Matching Question
Hey all,
Looking for some advice on 401k plan. Would it always be best to max out the 401k? With a base salary of 55k and employer matching of 50% up 15%, should I go for the full max of 15% if I can afford it?
I'm fortunate enough not to have rent payments, so pretty much just have utilities, car insurance, transportation, and food costs. I'm a saver by nature and would look to invest money not set aside for 401k in more short-term and aggressive opportunities, so just curious what people think.
Provided you have your 6mo-1yr emergency fund already set, max out the match. It's tax advantaged and you have a degree of control over the investments, provided your firm has a decent plan.
Why wouldn't you? Worst case you can always take an early withdrawal (with penalty, but still). If you max it out, that's $8,250 pre-tax - I'd imagine you might still have some disposable income to throw at short-term opps given your lack of expenses.
I do have emergency funds available, so that is a plus. I guess it would be dumb not too as I would need to earn at least 50% return on my short-term investments just to break even with the employer match and not taking into consideration the tax advantage.
I just know there are going to be some small projects that I'd like to take some stabs at . . . but your right, if I budget properly, I should still be able to have some disposable income available,
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