Roth 401K Match versus save up cash at a more rapid pace

[Oneil Guntner]

I have been contributing to a Roth 401k at work. In order to get the full match I put in 6% to get a 4% match. It has built up to almost $9,000. I read Scott Trench's Set for Life for the second time the other day and I was considering maybe holding off on the match to build up significant amount of money for a down payment on a rental property. The thing is I'm not sure it's worth it. I only estimate i'll be able to save roughly $2,400 more a year. Versus roughly around $4,000 a year in my roth 401k. Is there any advantages like using  it to qualify as reserves? Or taking out a loan against it penalty free once it builds up. 

[Eamonn McElroy]

@Oneil Guntner

"I have been contributing to a Roth 401k at work. In order to get the full match I put in 6% to get a 4% match. It has built up to almost $9,000. I read Scott Trench's Set for Life for the second time the other day and I was considering maybe holding off on the match to build up significant amount of money for a down payment on a rental property."

Assuming you meet the vesting requirements, you get an instant 67% return by contributing 6% to your workplace retirement plan.  Where else can you get a guaranteed return like this?

Contribute 6%, then find a way to save more outside of the retirement plan.