Comments on: No Employer 401K Match? Still Contribute http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html Retire happy, healthy and wise. Sat, 22 Nov 2008 10:40:11 +0000 http://wordpress.org/?v=2.6.3 By: Moe O. http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-57777 Moe O. Tue, 11 Dec 2007 22:56:25 +0000 http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-57777 An employer who does not invest in employees' retirement is not worth working for. Find another employer. An employer who does not invest in employees’ retirement is not worth working for. Find another employer.

]]> By: raghavendrapb http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-6923 raghavendrapb Sun, 15 Apr 2007 01:47:25 +0000 http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-6923 If the employer is NOT matching the 401(K) contributions, then I would prefer traditional IRAs which have same rules and benefits as of a 401(K) account. There are 2 reasons for this. 1) With my own IRA, I can invest virtually in any stock or fund. But in 401(K) account, I cannot invest outside of the plan. 2) When I change job, I don't need to rollover process. If the employer is NOT matching the 401(K) contributions, then I would prefer traditional IRAs which have same rules and benefits as of a 401(K) account. There are 2 reasons for this.

1) With my own IRA, I can invest virtually in any stock or fund. But in 401(K) account, I cannot invest outside of the plan.

2) When I change job, I don’t need to rollover process.

]]> By: 2million - My Journey to Financial Freedom http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-534 2million - My Journey to Financial Freedom Mon, 12 Feb 2007 13:43:34 +0000 http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-534 <strong>Carnival of Personal Finance #87 in Rio...</strong> Welcome to the 87th edition of the Carnival of Personal Finance. Just in time for the real "Carni'val in Rio" this week's edition is ready to party!! So grab a cocktail and lets get started with the parade. First up,...... Carnival of Personal Finance #87 in Rio…

Welcome to the 87th edition of the Carnival of Personal Finance. Just in time for the real “Carni’val in Rio” this week’s edition is ready to party!! So grab a cocktail and lets get started with the parade. First up,……

]]> By: retirehappy http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-486 retirehappy Tue, 06 Feb 2007 23:59:43 +0000 http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-486 I think that maxing out your 401k just to max out your 401k may not be the best option because just as how you want to diversify your assets, you want to diversify your tax profile as well. I'm currently maxing out my 401k (no match) because I want to shield income, not because I just want to max it out. I think that maxing out your 401k just to max out your 401k may not be the best option because just as how you want to diversify your assets, you want to diversify your tax profile as well. I’m currently maxing out my 401k (no match) because I want to shield income, not because I just want to max it out.

]]> By: Lazy Man and Money http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-485 Lazy Man and Money Tue, 06 Feb 2007 19:09:44 +0000 http://www.myretirementblog.com/no-employer-401k-match-still-contribute.html#comment-485 I max out my 401k every year even with no match, but I've been thinking it might not be wisest plan lately. While you are deferring the taxes, you still pay eventually. So while it does grow faster, the government also gets it's share of that growth at the end. That's really not a big reason why I am rethinking things though. When you withdrawl money from a 401k plan it's taxed at your current income rate. That's probably 25+% for a lot of people. If you were to invest in stock after tax, you would only pay long-term capital gains and gains on the dividends - currently only 15%. I'm not a tax guru so research this with a tax professional. I max out my 401k every year even with no match, but I’ve been thinking it might not be wisest plan lately. While you are deferring the taxes, you still pay eventually. So while it does grow faster, the government also gets it’s share of that growth at the end. That’s really not a big reason why I am rethinking things though.

When you withdrawl money from a 401k plan it’s taxed at your current income rate. That’s probably 25+% for a lot of people. If you were to invest in stock after tax, you would only pay long-term capital gains and gains on the dividends - currently only 15%. I’m not a tax guru so research this with a tax professional.

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