[quote=livinincali][quote=flu]
I wouldn’t worry about it, you’re not going to miss *that* much money from waiting extra year. Who knows, maybe you won’t lose money during that 1 year, in case the stock market tanks. So you never know, maybe there’s reason for this after all 🙂
[/quote]
The only thing your really missing out on is the tax benefit. You can open a standard brokerage account and likely invest in the same shitty funds the 401K offers. The question of paying down a mortgage versus investing really just comes down to rate of return and any kind of possible tax advantage/disadvantage. If you pretty confident you can get a rate of return a couple percent higher than the mortgage rate do that. If you can’t then pay down the mortgage.[/quote]
The tax benefit is would be roughly 1.5 years worth of Roth 401k contribution roughly $7750… Assuming a 4% conservative ROI over the next 10 years, that would be roughly $11k available at retirement. If he has a mortgage or loan amount above 4%, perhaps paying off of the higher interest debt would be a better option.
Yes, it’s money, but not completely devastating..Who knows, maybe svelte got more than an $11k net raise (after taxes). I guess it depends on how much of a hassle does svelte want to deal with setting up a backdoor Roth (and whether if he can).
For me, I don’t mind dealing with PITA things when it comes to money. But that’s just me.
