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You can't hit those 401k numbers without employer cooperation (e.g. being self-employed)... I don't think it's reasonable to say that someone paying the $20,500
by nullc 5y ago
You can't hit those 401k numbers without employer cooperation (e.g. being self-employed)... I don't think it's reasonable to say that someone paying the $20,500 annual max isn't maxing it out.
> For example a Series-I bond ... current rate is 7.12%
Entirely from the variable part-- their fixed rate is 0% right now, and since the interest is taxed when you close the bond, this is an investment that is guaranteed to under-perform inflation (even if you don't believe their variable rate systematically understates real inflation).
- ryandrake 5y agoYea, I'm not saying I-bonds are great investments, but they are good if 1. your investment goals emphasize tax deferral/avoidance and 2. you need to diversify an equity heavy portfolio. I agree with OP in that you don't really need an advisor if you're just contributing to your retirement plan, and I'd add "...or to other tax-deferred accounts that don't offer much choice in securities". The types of investments I listed don't require any thinking or research. Just buy-and-forget. I would personally argue you shouldn't be touching regular taxable investments like buying individual stocks or ETFs until you've literally maxxed out every tax-deferred options, but that's a more controversial opinion over which reasonable people can disagree.
- scarface74 5y agoI agree completely with taking advantage of every tax advantaged means of savings. For me that means. - I-bonds up to the amount needed for an “unemployment fund” - max out my 401K - max out the company managed “after tax 401K” - max out the HSA and use after tax dollars to pay medical expenses That takes me to $42K before I turn 50 in a couple of years.