Quote:
Originally Posted by E150GT
yeah 6% is the match. I know throwing money right now into a 401(K) is like throwing it into a black hole, but maybe I can get some stock bargains.
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Then definitely max out the matching first.
Look at it like this. Say for simplicity, 6% is $1000. You get an extra $1000 free and clear to use to invest. If you don't use it, then you have $1000 less to invest and will have lost it. In essence you will have lost $1000 if you don't use the matching.
Definitlely max the match first. Then, since you are young, it probably doesn't matter much what you do next.
IMO, the main difference is that you either get taxed now or taxed later. 401k is taxed later, Roth IRA is taxed now. Generally, people are in higher tax brackets later in life than they are when they are young.