Hello everyone,
First post here at MMM. Hoping someone can guide me about my saving strategy.
I will be working for my current employer for 2 years. The company offers a 401k with pretty good investment options but no match whatsoever. Currently all my savings are in a Roth IRA and a brokerage account. While I would like to save as much as possible, I don't want to have my money locked into a traditional IRA which it would if I rollover the 401k after quitting and the lack of an employer match is also discouraging.
As far as I see I have 2 options,
1. Set some money aside every paycheck and put it into my brokerage account (apart from $5500 in the Roth which I would do anyways).
2. Pay into the 401k for now and pay the penalty to do a Roth conversion after 2 years.
Am I right in understanding that by choosing option 2, I would be paying more in taxes/penalties overall but would end up with my assets in a Roth vessel which is better for long term growth. How would you do the math to see which is better?