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Investment Strategies / Mechanical Investing
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Author: elann ✹🐝 GOLD
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Number: of 3958 
Subject: Re: OT - advice for my son
Date: 11/22/2024 3:41 PM
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I always contributed the maximum allowed into my 401K, and now it's a very satisfactory source of retirement income.

Consider that the tax deferred by contributing to a retirement plan is at his top marginal tax rate. When the time comes to withdraw it, it will be at his average tax rate (assuming it will be his main source of income), which he can expect to be much lower.

But, diving into taxable savings that are subject to LTCG to make the retirement contribution, and paying 15% immediately, doesn't make much sense.

Elan
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