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Regardless, you should always max out 401k and IRA every year. Because you only get taxed with those once, it's better. Investing your after tax income into som
by bradlys 9y ago
Regardless, you should always max out 401k and IRA every year. Because you only get taxed with those once, it's better. Investing your after tax income into something that will get taxed /again/ is not optimal compared to 401k and IRA.
- brianpgordon 9y agoIt may be better in some cases to hold onto the cash rather than locking it up in a retirement account in order to build up a cash buffer and avoid the penalty for an early withdrawal in case of emergency expenses.
- bradlys 9y agoSure, but I'm not assuming such weird scenarios. You're supposed to have your emergency fund completely built up before you save for retirement.