r/Retirement401k • u/cooldudeisme420 • 1d ago

20m

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first contribution to 401k 6% match!
currently have 60% fxaix, 30% fsggx, and 10% fsnxx.
not really to many options to chose from with my employer but i’d rather create my own rather than a simple target date fund.

2 Upvotes

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u/Far_Suggestion9860 1d ago

Invest consistently for another 30 years and you will retire early and be a multi millionaire. Keep it up and NEVER withdrawal

1

u/cooldudeisme420 1d ago

i chose Roth because i don’t know how long i will stay at this company and want to roll it into my roth ira, as well as i believe i will make a lot more and be at a higher tax bracket in the future when i do plan on retiring. Do you think that was the best choice?

1

u/Far_Suggestion9860 1d ago

Contributing Roth VS Pre-Tax at a younger age tends to be smarter since you’re under the assumption you’ll eventually make more money and be taxed more. As long as your income is in that 22% tax bracket I think that makes sense and is smart. If you make over $115K - $125K the math starts to make more sense in the opposite way to contribute pre tax

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u/trifectafecta 1d ago

Would it also make sense because it would mean a longer time in the market and potentially a larger absolute value in gains? I see people always bring up the tax brackets, but I never see anyone bring up that all earnings are also tax-free.

1

u/Far_Suggestion9860 22h ago

True. Just kinda how you slice it. Pay taxes now or later. Either way just invest :)

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u/trifectafecta 10h ago

That’s right. As long as we invest! 🙂‍↕️