Author Topic: What to do with these 401k choices?  (Read 1658 times)

FL_MM

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What to do with these 401k choices?
« on: April 10, 2017, 08:49:59 PM »
Just wow...https://www.americanfunds.com/individual/investments
I'm thinking of only investing up to the co match.
Any advice would be appreciated.

Cwadda

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Re: What to do with these 401k choices?
« Reply #1 on: April 10, 2017, 09:32:31 PM »
I've never been a fan of American Funds. The fees are absurd.

However, we might need a better picture of your financial situation i.e. to determine the level of 401(k) deduction you should take, or whether you should just contribute up to the match.

FL_MM

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Re: What to do with these 401k choices?
« Reply #2 on: April 11, 2017, 06:15:50 AM »
FI in 8-10 years, but my plan was 18k into the 401k and full Roth contribution.

ooeei

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Re: What to do with these 401k choices?
« Reply #3 on: April 11, 2017, 06:51:13 AM »
I think Cwadda meant your income level, how much you have in other tax deferred vehicles, any deductions you currently take, stuff like that.

If you make $40k a year you're getting less of a tax break from the 401k than if you make $140k a year.

Cwadda

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Re: What to do with these 401k choices?
« Reply #4 on: April 11, 2017, 07:00:10 AM »
Yes, we need a larger picture. What is your income, what are your current assets, and any deductions you've claimed for your tax return.

FL_MM

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Re: What to do with these 401k choices?
« Reply #5 on: April 11, 2017, 06:54:24 PM »
DINKs with variable income due to commission. 110k yearly guaranteed with 150 expected. No mortgage and always take the standard deduction since we paid it off.

Cwadda

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Re: What to do with these 401k choices?
« Reply #6 on: April 11, 2017, 09:28:16 PM »
Is there a front-load fee for purchasing the funds? Or just high annual fees?
If it's just a high annual fee I'd take the max 401k deduction. You can save quite a bit from taxes.

ooeei

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Re: What to do with these 401k choices?
« Reply #7 on: April 12, 2017, 06:54:04 AM »
Another thing to consider is how long do you expect to stay at this job?  If you realistically won't be there more than 4-5 years, I think the 401k is a no brainer. 

Proud Foot

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Re: What to do with these 401k choices?
« Reply #8 on: April 12, 2017, 09:53:47 AM »
Which share class is offered in your 401k? That makes a big difference in the fees for each investment.  Using one of the funds I use in my own 401k (Fundamental Investors) as an example. I have the R-5 shares and it has a 0.35% ER with no load (R Shares have no loads).  The exact same fund only in the R-1 shares has a 1.41% ER.