Do you contribute to ROTH? Do you contribute past match for 401k?

Question

I currently deposit 12% of my paycheck into my employer 401(k) and they put 50% up to a max of 6%. I also put $500 a month into a mutual fund (currently at 4k). When it reaches 5k I planned to put it in a ROTH, however, since I'm not planning on getting into real estate investing I'm really rethinking my contributions. Would it be wise to drop down to 6% 401(k) and 0 into my mutual/roth in order to save up for real estate earlier? I realize my taxes will be a bit more due to this, trying to see if the benefits outweigh the costs?

Thanks

George Blower · Answer

@Justin Teal

Contributing to a Roth 401k is ideal since all the gains grow tax free.

Mark H. · Answer

@Justin Teal

I contribute up to the match percent to mine and my wife's 401k. Then fully fund two Roth IRAs (one for each of us). After that I have taxable investment accounts and saving for my investing down payment.

Marko Zlatic · Answer

I only contribute up to what my company will match in my 401k. I also max out my Roth IRA every year in a target fund.

Do you contribute to ROTH? Do you contribute past match for 401k?

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