Thread: 401k
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Bill Verburg Bill Verburg is online now
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Since most people can contribute to a Roth, lets leave it as an option in the mix.

What's best depends on what happens to future tax rates.

The Roth is better if future rates are greater than present rates
the 401/403 is better if future rates are less than current rates.

Since no one can accurately predict future rates(though many of us suspect what will happen) a mix of Roth and 401/403 is indicated.

As mentioned, employer match is free money and ought to be taken advantage of fully, after that I would max the Roth then max the 401/403

A third vehicle, the annuity is an option if everything else has been fully funded, it is an insurance policy w/ an investment component that can be advantageous to a small % of the population.

Whatever you do, never buy an annuity or other tax favored product(like municipal bonds) inside of a 401/403 or Roth. There are unscrupulous people in the financial industry that will try to sell you such a product.
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Bill Verburg
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