ah, yes, the latest on my company 401K

Canuck57[_9_]

On 22/07/2010 3:07 PM, Jim wrote:
nom=de=plume wrote:

"Jim" wrote in message

Bad advice. With catch-up he can put $22k this year in the 401k.
He should be maxing that to shelter it from taxes.

Nope. Right now, taxes are low, so it's doubtful that a it'll push him
into a higher bracket, and even if it does, you're talking about a
couple of percent. The future is much more uncertain, but it's very
clear that taxes will likely go up, and as a retired person, he should
be minimizing his tax exposure.

From what he's said he's in the 25-28% range already.
Why do you suppose he'll be in a higher bracket when retired?
The flies against most experience.

Even if it's money market with no return.

?? That makes no sense at all.

Pretty simple. You can't lose your contribution money as you could in
equity funds.
Remember, this is retirement money.

The feds won't let MM go below par because the economy would collapse.
That tax savings is money in the bank.

?? There tax savings of investing in a 401K is minimal at this point.

Don't know what you're talking about there.

Maybe about 5 grand for him.

Menu