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In investing your best asset is time. 401k is the best wealth building tool we have especially if you have a match and even more so if you’re a high earner and
by nemo44x 5y ago
In investing your best asset is time. 401k is the best wealth building tool we have especially if you have a match and even more so if you’re a high earner and consider the tax savings. Even more if you have an HSA and understand it’s a 401k on steroids.
America is fabulous if you make a few deferred choices.
- ramphastidae 5y agoHSAs are wildly overrated. Yes, it’s triple tax advantaged and it rolls over, but with a yearly limit of less than $4K it’s not moving the needle for most people.
- nemo44x 5y agoYou’re forgetting the magic of compound interest. After 25 years of depositing 7k (that’s the current limit) you’d have $600k with a cost basis of $180k assuming the money was put into index funds. That $180k was all pre-tax meaning you probably only put in $120k of it or so assuming high marginal rates.
- ramphastidae 5y agoLimit is $3500 for individuals, $7000 for families.