Portland, OR · Member since 2015 · 91 posts · 19 votes
I have been researching for months about how to select a 401K plan but in all honesty I don't really understand how to best choose a plan. Real Estate makes sense to me when I read a book, a forum post, or a podcast. A 401K on the other hand just seems like so much information is missing, it feels like shooting a gun at a target in a dark room.
My company matches a 75% contribution up to 6%. I can easily afford the 6%, my lifestyle is minimal and we save 100% of my wifes full time income for REI, so this is just another way to plan for the future. If you were presented with the options below, which would you choose and why? Thanks for the insight guys!
Interesting question. The printouts are not readable.
A 401k is a tax shelter which means you shelter any contributions and gains for now but will ultimately pay taxes when distributions commence. As such, it is just another tool.
Interesting question. The printouts are not readable.
A 401k is a tax shelter which means you shelter any contributions and gains for now but will ultimately pay taxes when distributions commence. As such, it is just another tool.
@Matt Turbitt im 34 years old. Are you other guys able to view the .jpeg document above or is it just Mark?
They should view on pc but you can't expand documents or pictures on mobile so that could be why. You are young enough with enough other avenues that I would invest 6% with the highest risk option they offer. It's a 401k so even the highest yield/risky play isn't all that risky.
Joel Bowen
I can't see the images on the app so I will have to try it when I get on a computer. Here is a quick general guide -
Look for low fee/cost whole market mutual fund, not actively managed fund. Allocate % based on your age into stock / bond fund. If you have Roth 401K option, use it because the contribution will be after tax and future distribution will be tax free. If you contribute more than IRS limit yearly, those extra contributions are after tax so are considered Roth when you move them out of your 401k.
If the sheet didn't include fee %, pleas ask you HR or 401k plan manager for it.
Good luck figuring it out!
Henry
Henry J. , not all plans allow excess after-tax contributions. He needs to check plan document. Even if excess after-tax contributions are allowed, he may not want to do them.