Hi, I am a mid-20s white collar professional without substantial outstanding debt looking for some advice.
I currently contribute the (5%) max to my Roth IRA that my employer matches. If I chose, I would be able to contribute more without financial hardship. What is the upside of doing this, versus investing the money otherwise in a normal brokerage?
The common advice seems to be to contribute the maximum you can accommodate, but I don't really understand why.
If I understand correctly, my tax liability would not change, as the money contributed to the IRA is post-tax. I have lesser flexibility in how I invest the IRA vs the brokerage. And it is unavailable for possible withdrawal for something like a mortgage down-payment etc.
It also occurs to me (just now) that it may be possible for me to additionally contribute to a standard pre-tax 401k (without matching). I guess that that would be preferable if possible?
Please let me know your thoughts, or if you think I'm missing some other route.
Thanks!
Submitted October 27, 2018 at 11:09AM by b-shears-throwaway https://ift.tt/2Ppt8lV
