Comments on: Making Early Retirement Happen http://www.getrichslowly.org/blog/2006/04/25/making-early-retirement-happen/ Personal finance that makes cents. Common sense advice on topics from high interest savings accounts, frugality, cd rates, money market accounts, mortgage rates, how to get out of debt, money management and more. Sun, 21 Mar 2010 20:20:16 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Massive Personal Finance Resource List | The Frugal Law Student http://www.getrichslowly.org/blog/2006/04/25/making-early-retirement-happen/#comment-89088 Massive Personal Finance Resource List | The Frugal Law Student Fri, 08 Jun 2007 19:22:27 +0000 http://www.getrichslowly.org/blog/2006/04/25/making-early-retirement-happen/#comment-89088 [...] Making Early Retirement Happen [@ Get Rich Slowly] [...] [...] Making Early Retirement Happen [@ Get Rich Slowly] [...]

]]> By: VinTek http://www.getrichslowly.org/blog/2006/04/25/making-early-retirement-happen/#comment-7 VinTek Tue, 25 Apr 2006 21:18:55 +0000 http://www.getrichslowly.org/blog/2006/04/25/making-early-retirement-happen/#comment-7 In order to maximize it impact of his investments/savings, he ought to fund his 401(k) only up to the company match (6%), then max his Roth IRA, then go back to putting any extra money into his 401(k). By doing this, he maximizes his company match. Then by doing this Roth IRA next, he maximizes his potential growth by making it tax-free (although his cash flow will be less because he'll have to pay taxes on the principle up front). Then he can continue to get his tax-deferral benefit by putting any additional free money into the 401(k). In order to maximize it impact of his investments/savings, he ought to fund his 401(k) only up to the company match (6%), then max his Roth IRA, then go back to putting any extra money into his 401(k).

By doing this, he maximizes his company match. Then by doing this Roth IRA next, he maximizes his potential growth by making it tax-free (although his cash flow will be less because he’ll have to pay taxes on the principle up front). Then he can continue to get his tax-deferral benefit by putting any additional free money into the 401(k).

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