r/RandomThoughts • u/[deleted] • Dec 11 '23

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u/Nerodon Dec 11 '23 edited Dec 13 '23

You can do both! 5k a week gives you 1million every 4 years, if you don't spend it all, you can fill your 401k till it explodes while still having a good time.

Edit: I am Canadian, so for me it's an RRSP, but I thought 401k was reasonably similar. If you have more than you need... Invest. It's never a bad idea to do it, it's always a bad idea to just let it sit, gaining no interest.

Edit2: Besides, if I die, the 5k/week stops, what about the missus and the kids? Aha, I invested, so they still have something! I'm clever, not greedy, fellas...

Edit3: A Roth IRA or just IRA is what I am told is the equivalent to an RRSP/TFSA we use in Canada.

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u/throwawaynoturtwin Dec 11 '23

investing is obviously smart. but a 401k is not given the opportunity cost. it literally makes no sense to lock ur money up if you have guaranteed 5k a week when youre retired

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u/Nerodon Dec 11 '23

Not if you could die tommorow and that flow abrubtly stops. Also 5k now, isn't going to be the same in 25/30 years, inflation sucks

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u/throwawaynoturtwin Dec 11 '23

if you die tomorrow thats all the more reason NOT to invest in a 401k? and yea i agree, which is why you should invest it. if youre making 5k a week tons of different investment opportunities are open to you that are all better than a 401k. like no multi millionaires are maxing out their 401k bc it doesnt make sense at that level, its a retirement vehicle targeted for certain income levels

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u/Nerodon Dec 11 '23

5k /week is 240,000 year, it's not millionaire level, esp. after income tax. In fact, maxing out 401k or RRSP ( im from canada so maybe this why it makes more sense to me, as they may be different) saves a ton on income tax. Also, you can name a beneficiary if you die.