With our friend Zigg still on his island and his friends intent on staying for a while, we decided to shift gears and discuss our favorite question of the week. This week’s question derives its origin from several conversations we have had lately with client’s, making it topical for discussion.
NO and NO !
We recommend you put as much as possible in your company 401k even if there is no match at all. There are various restrictions such as compensation and general government caps which limit contributions, but putting as much PRE-tax funds into your 401k as possible, is our recommendation.
Various plans allow you to continue after-tax contributions to retirement plans, which we are not advocates of doing. Most plans do not have the ability to provide for specialized allocations which may be more appropriate for investment. Don’t bypass saving these extra dollars and spend! Just save these funds in a more self-directed manner.
In closing, just because Zigg is on vacation, does not mean there are not sharks out there, keeping our guard up for an “Event” is still a good idea, however, economic, consumer, and earnings (more discussions soon) look very good!
Have a Super Day and a Great Weekend!