For those of you with the option to contribute to either a traditional 401k or a Roth 401k or split contribution between the two, that’s a no brainer, especially if your employer also does a $5-10k+ match on top of that.
$18k contributions each year with 4% annual return is about $828k after 25 years
$18k contributions each year with 5% annual return is about $963k after 25 years
$18k + 5k employer match each year with 4% annual return is about $1.06m after 25 years
$18k + 5k employer match each year with 5% annual return is about $1.23m after 25 years
Why gamble your entire retirement on a one hit epic guess being correct on the direction of the stock market…when that one hit epic guess could end up turning out to be an epic failure for your retirement?
