08-14-2022, 06:06 AM
(08-13-2022, 04:15 PM)crimsonghost747 Wrote: While I'd love to offer some awesome advice, I don't really understand your tax system well enough to have a full understanding of the different options.
But in general, I thought maxing out you 401k is kind of a "must do" since it helps with the taxes and you can grow the 401k without any tax consequences?
Taxes are not fun, so avoid them if you can.
Yes, my employer offers both pre-tax and ROTH 401k. The 2022 max contribution is $20,500 and for those 50+ they get to contribute an extra $6,500. Gotta figure by the time child support ends, the total will be well over $30k. $30k+ going into a ROTH 401k, if I can swing it, does sound appealing.
The problem is that 401k money is money i can't touch for 10 years. What if I want to do a big project like convert my house into a 2 family? Or what if I need my dividends to help me pay an auto loan that is say $1000/month? That's why I'm thinking option 3 may be my best bet. It's a whole new world for me now that company stock is no longer something I can rely on for big purchases.