I wanted to know which route should I take. My situation is that I currently work for an employer that has a Voluntary 403B but does NOT match (I contribute in this). They also provide a Pension, which is automatic once 9% of my gross goes in (I contribute in this). They also have a Voluntary 457 but also does NOT match (debating on this).
My take home after taxes, insurance, 403B and pension is around $4,000 net.
Monthly bills is about $2,000
I have 3 months worth of emergency I lost my job saving account.
So I have $2,000 a month to play with for gas,entertainment, cat litter, self help audio books, fancy hipster beverages named after mythical creatures and investments.
Currently I pay into the pension. I am also maxing out the 403B reaching the yearly limit.
My question is that if capital gains if held for the Long is at 20%, would investing in a private brokerage account be more efficient versus opening a 457 account?
I understand hat both 403B and 457 both differ taxation to a later date. This decreases my taxable income, which combined with mortgage interest are my Tax Shelters.
I can access more of my gross pay to put into the 457, and then get taxed later after it has grown for 30 years. However, with federal income tax hovering at the 40% mark does it make sense to continue this route?
I could take the hit now with income tax, use the taxes money from my paycheck to open a brokerage account and get taxed 20% after 30 years of growth. Does the private brokerage account make more sense?
Submitted April 15, 2018 at 12:27PM by igloohavoc https://ift.tt/2qyBU2M
