401k versus Roth

[StormRichards]

mostly agree with storm Richards on order of priority... from bogleheads


2. Pay off high interest debt (a guaranteed high return, the next best thing to free money),

I agree with this 100%. I should have thought about this for the sake of this thread/discussion. However, it never really enters my mind because I have never had it.

But it would most definitely be my #2 for sure just as you put it.

[Captain Save]

Contribute up to your max for a 401k ... unless you think you'll be in a lower tax bracket or tax rates will be lower when you retire ..

At least the Roth you know you've already paid the taxes.. .Peace of mind is invaluable thing during retirement...

think about the folks who have pensions vs the folks you know who have 401ks' ... who do you think is happier ..

[StormRichards]

At least the Roth you know you've already paid the taxes.. .Peace of mind is invaluable thing during retirement...

Well said

[LivingAlmostLarge]

Maybe but if you are a person who saves money chances are you might be paying more now than later. Plus you can always tax efficiently roll money from a 401k to Roth IRA if you retire early. You have to think about your spending habits now.

We make a lot now, I doubt our retirement income will be as large. It really doesn't need to be since we live on about 1/3. So if we replace 1/3 of our income which is a substantially lower bracket it makes sense we don't use a Roth 401k.