Comments on: 3 Reasons Why You Shouldn’t Fall in Love With Your 401k!

By: 10 Sure-Fire Money Moves That Will Always Pay Off – Or Not? : Debt Help

10 Sure-Fire Money Moves That Will Always Pay Off – Or Not? : Debt Help — Wed, 04 May 2011 10:02:38 +0000

[...] In my opinion, don’t fall in love with your 401k!! [...]

By: 10 Sure-Fire Money Moves That Will Always Pay Off - Or Not? | Redeeming Riches

Sat, 18 Sep 2010 11:59:07 +0000

[...] In my opinion, don’t fall in love with your 401k!! [...]

By: LinkStuff For A Saturday Nov 14

LinkStuff For A Saturday Nov 14 — Tue, 05 Jan 2010 01:14:44 +0000

[...] Redeeming Riches explains why you shouldn’t fall in love with your 401(k) plan. [...]

By: FinanciallySmart

FinanciallySmart — Thu, 19 Nov 2009 18:23:13 +0000

A wonderful article I wonder why someone would fall in love without investigating. All the best.

By: Jason

Jason — Thu, 19 Nov 2009 02:14:15 +0000

Investing 101 – you’re right – tax diversification is an oft-neglected area and should be talked about a lot more.

By: Investing 101 For Dummies

Investing 101 For Dummies — Wed, 18 Nov 2009 20:44:57 +0000

A 401K should be just one option, not THE main option. I love the idea of diversifying from a tax perspective. Not many people stress that! .-= Investing 101 For Dummies´s last blog ..How To Get Started Investing In The Stock Market: How And Where To Find Profitable Stocks =-.

By: Week in Review – 11/14/2009 | Debt Free Adventure!

Week in Review – 11/14/2009 | Debt Free Adventure! — Sun, 15 Nov 2009 23:21:12 +0000

[...] 3 Reasons Why You Shouldn’t Fall in Love With Your 401k! – by RedeemingRiches.com [...]

By: Jason

Jason — Sun, 15 Nov 2009 16:33:02 +0000

@Kevin – thanks for sharin’ your experience. It’s so true – most people still assume they make less in retirement, but when you ask them if they want to maintain their standard of living they say “of course!”. That typically requires the same amount of income unless they’ve got debts paid off etc.

It really comes down to a balanced view and a balanced investment plan and tax plan.

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Sat, 14 Nov 2009 17:09:24 +0000

Thanks for pointing out the tax pitfalls especially.

Most people probably don’t fully appreciate the difference between tax free and tax deferred. 401k’s are tax deferred, meaning the day of reckoning is merely deferred.

Also, I’ve prepared enough income tax returns in my time to know that the idea that income falls between 59.5 and 70.5 is largely a myth. For reasons beyond the scope of this post, many people are making more at this point in life than ever.

What’s nearly tragic is that many people defer income from earlier in life–when they really need it more–to later in life when they don’t need it nearly as much. For example, for most people the need for money is greatest when they have dependent children.

401k’s are good to have, but balance them out by putting money into debt reduction as well, esp mortgages. The people who tend to do the best in after age 60 are those with the fewest obligations.
.-= Kevin@OutOfYourRut´s last blog ..Credit Cards vs. Debit Cards – A Different Take =-.

By: Jason

Jason — Fri, 13 Nov 2009 03:06:32 +0000

@ JoeTaxpayer yeah, rolling your 401k over to an IRA makes sense, but your IRA is still tax infested. Gotta get the matched funds for sure though. Tax diversification goes a long way in helping reduce some of that tax burden.