Posted by: meraj September 10, 2021
ROTH or 401K
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Sounds like you are still young and also good with money management cause you have passive income .

1. If you plan to expand that passive income and turn that into business model, just save money outside of any retirement account . Cash is always king in business world.
2. If first doesn’t apply or still have access money, max out Roth. In long run since you are young , return on it will most likely be high then other tax savings due to compounding over long time . Also there is very chance that you won’t be qualifying any more for Roth ( without back door ) , because both of salary will grow in next few years. Also Roth can be used as emergency funds because , your contribution can be easily pulled out any time.
3. After 1 and 2 , max out 401 k. But personally now a days I feel like 401k is a trap created by corporates and government to keep you trapped on workforce till you are 60. Even though you have 5 mil in 401 you can’t take disbursement and stop working until you reach the age. These days it’s fairly easy to invent , day trace and live out of it if you have 1 mil to play with. But if it’s stuck in 401k , you can’t do much . So think carefully about 401k , depending on your future plan.

Apologies for typos and missing words etc , iPhone sucks.
Last edited: 11-Sep-21 06:23 AM
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