Okay everyone, hold onto your seats this is going to be rather long-winded.
I know there are some very financially savvy individuals here as I lurk and have read through some pretty enlightening threads and I am seeking some advice, any information you choose to reply with is greatly appreciated.
I am at the beginnings of a career were for the first time my employer offers the “employer match” percentage of my investment vehicle. I can choose either Employee Pretax, Post 86 After-tax, or Roth 401(k).
I already have a Roth 401(k) and it was a military TSP that I rolled over into Roth, I paid the taxes on the roll-over up front and now I just set it and forget it and know that I am good come retirement when I withdraw. I LOVE this!
Currently I am very tight with the management of my taxes out of my payroll for state and federal (I am not paying more than I need to, nor am I paying to little) I like to pay just what I need and when tax time comes and I get my refund I choose to manually turn around and invest that money as I choose. Therefore I do not want to take advantage of the Employee Pretax investment vehicle.
[FONT="]Currently I am investing in the Post 86 After-tax with the thought that I could pay taxes as I go and be better in the long run then paying all the taxes in the end on the big sum of money (especially considering I am maximizing the employer match %) – but I am wondering whether I would be better off doing the Roth 401(k) vehicle rather than the Post 86 After-tax method… anyone experienced or knowledgeable about both these vehicles and maybe could shine some light on the differences? For me I already have another Roth as mentioned but If having two is more beneficial than using the After-Tax method I am all for it…..
I am currently young and I like the idea of "set it and forget it" investments as I can utilize other funds at my discretion to do stock management (I am very risk averse)
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I know there are some very financially savvy individuals here as I lurk and have read through some pretty enlightening threads and I am seeking some advice, any information you choose to reply with is greatly appreciated.
I am at the beginnings of a career were for the first time my employer offers the “employer match” percentage of my investment vehicle. I can choose either Employee Pretax, Post 86 After-tax, or Roth 401(k).
I already have a Roth 401(k) and it was a military TSP that I rolled over into Roth, I paid the taxes on the roll-over up front and now I just set it and forget it and know that I am good come retirement when I withdraw. I LOVE this!
Currently I am very tight with the management of my taxes out of my payroll for state and federal (I am not paying more than I need to, nor am I paying to little) I like to pay just what I need and when tax time comes and I get my refund I choose to manually turn around and invest that money as I choose. Therefore I do not want to take advantage of the Employee Pretax investment vehicle.
[FONT="]Currently I am investing in the Post 86 After-tax with the thought that I could pay taxes as I go and be better in the long run then paying all the taxes in the end on the big sum of money (especially considering I am maximizing the employer match %) – but I am wondering whether I would be better off doing the Roth 401(k) vehicle rather than the Post 86 After-tax method… anyone experienced or knowledgeable about both these vehicles and maybe could shine some light on the differences? For me I already have another Roth as mentioned but If having two is more beneficial than using the After-Tax method I am all for it…..
I am currently young and I like the idea of "set it and forget it" investments as I can utilize other funds at my discretion to do stock management (I am very risk averse)
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