12-06-2014, 07:18 PM
I am a brand new dividend investor, learning as much as I can from you experienced folks right now. I have a practical decision to make that I would love your help on. Namely, should I keep contributing to my 401k?
Here is my current situation:
I currently contribute the max to my 401k. It is through Vanguard and I have a mix of 4 low cost index funds that I invest in.
Unfortunately, my employer does not offer a match.
In terms of dividend stocks, I have no real portfolio to speak of so I'm basically just starting out on that side.
My question to you is - For 2015, should I keep investing in the 401k for the tax deferral, or should I lower my contribution to 0%, take that money and use it to accelerate building my dividend portfolio? My goal would be to have enough dividend income to retire in about 10-15 years.
My salary is currently $135,000/ year. My biggest expense is $2,100/ mo in child support (for another 15 years). To max out my 401k at 2015 contribution limits, that would equate to approximately 13% of my paycheck each month. I've calculated it out and will try to save approximately 50% of my after tax income each month for investing.
Thanks for any advice you can provide.
Here is my current situation:
I currently contribute the max to my 401k. It is through Vanguard and I have a mix of 4 low cost index funds that I invest in.
Unfortunately, my employer does not offer a match.
In terms of dividend stocks, I have no real portfolio to speak of so I'm basically just starting out on that side.
My question to you is - For 2015, should I keep investing in the 401k for the tax deferral, or should I lower my contribution to 0%, take that money and use it to accelerate building my dividend portfolio? My goal would be to have enough dividend income to retire in about 10-15 years.
My salary is currently $135,000/ year. My biggest expense is $2,100/ mo in child support (for another 15 years). To max out my 401k at 2015 contribution limits, that would equate to approximately 13% of my paycheck each month. I've calculated it out and will try to save approximately 50% of my after tax income each month for investing.
Thanks for any advice you can provide.