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Old 02-28-2007, 09:55 AM
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jIM_Ohio jIM_Ohio is offline
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Default Re: 401(k) and Investing

Quote:
Originally Posted by Scanner
I agree with the poster who said this - go for the Roth, since a tax deduction at 32K/year isn't really that big in the scheme of things.

When you retire, that money is yours, free and clear of taxes.



You should understand what you are in and what relative risk they have of losing principal.

You need to be comfortable with the risk and the potential reward.
Going for the Roth is NOT a bad suggestion. If OP cannot fully fund Roth, it might cost him $10-$25 a year in IRA fees until balance is north of 10k. Assume it takes 4 years to get to 10k... that is $40 extra. Where as the savings on the tax deduction is probably $40-$100 now per month. That could be a $520 swing per year. I would need to run more exact numbers to be sure... but remember it's always easiest to spend someone else's money.
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