Just curious what everyone contributes to 401K vs Roth 401K.
For some background, Im 25 and my total comp is in the 220-240 range in NYC
I’ve done some quick BOE math and it seems at this age roth edges out the traditional - with considering taxes. Just want to hear others’ thoughts on this. I currently contribute 5% and 5% to each
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My calculus is that I assume taxes will go up (reversal of Trump tax cuts, all of our unfunded liabilities, etc), so I'd rather pay them now. I also am saving as much as possible and living well below my means- looking to start the nest egg of generational wealth for my family. Maybe that plan changes when I can retire at 50 and just want to leave the rat race, but it's the plan now..
So with those two ideas in mind, I max out my 401k- all Roth. Max out Roth IRAs too. The rest goes to a brokerage for now. Will revisit this when I'm in the 32%+ brackets, currently a hair beneath the 24% bracket.
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