I posted our current savings rate and listed our goal of increasing said savings rate and how we planned to attain that goal. One of the things I listed was to max out my Roth IRA contributions and to open a Roth IRA for Mr. Bug (and hopefully max his Roth IRA out as well).

I have read a lot online lately about the pros and cons of investing pre-tax vs. post-tax dollars. There are many articles out there of ways to decrease or practically eliminate your tax liability in retirement. Go Curry Cracker talks in depth about this here and Root of Good has a great post here.  This has really got me thinking. Do I have the wrong strategy? Should I be maxing out both mine and Mr. Bug’s 401Ks to get the advantage now rather than maxing out our Roth IRA to get the tax benefits later?

I see pros and cons to both sides and am truly stumped right now as to what would be our best path to take.

My 401K account has higher fees than the Roth IRA, but would the tax benefit now outweigh the higher fees? Should I max out my 401K now and only contribute any funds to a Roth IRA once both our 401Ks are maxed?

I would love to hear from all of you about what investment strategy you have taken and why.

Thank you in advance for your input!

 

 

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