My spouse and I have a combined income of about 200k. We work for the same employer that has a very nice 401k match. They match double our contribution up to 10% of salary. So to get the max match we contribute 5%, and they give us 10%.
In recent years as our pay has gone up we've maxed our 401k along with Roth IRAs.
But recently I'm starting to rethink pouring all that money into a 401k. The uncertainty over future tax rates/treatment (esp with the amount of debt this country is taking on along with the move towards a larger social net that's going to require much larger taxes), my personal diminishing faith in financial markets (stocks and bonds seem to be manipulated so much by the Fed now), and the lack of investment choices (basically all that is available is cash, bonds, stock) are all making me rethink the 401k.
With how the world looks now, I feel like I should start looking into investing more money into real estate, precious metals, foreign currencies, etc.
I'm in my late 30s. We have about 500k combined in our 401k already, and with just the company match and contribution needed for that match we are still putting in almost 30k/year. So it's not like are 401ks won't grow even if we don't max. IF the stock market does just perform as it has historically, even doing this would probably increase our 401k amount to enough to retire on in 20 years or so.
OTOH, our fed+state marginal tax is around 33%. So it is a decent tax savings now, plus 401k has solid protection against creditors.
I don't know, should I continue to max? Should I just do the minimum to capture company match at this point?
Submitted July 28, 2020 at 05:53PM by SelfImprover_reddit https://ift.tt/2CMSohX
