Which do you do? I currently have 10% into the Wells Fargo stock program, and 10% into a Traditional 401k (pre-tax). I just got a better understanding of the differences and am not sure if I should keep it like that, or switch to the Roth 401k, or do 5%/5% to both?

What is your strategy?

 

I contribute to my 401(k) pretax and have an additional IRA where I can get a tax break. I stay away from Roth IRAs because the tax laws could change in the future. Seeing how this country needs to generate as much income as possible, taxing Roths in the future is not out of the question and I would prefer to receive my tax benefit now.

 

okay, thank you for pointing that out.

 

i do both, like 60 / 40

 

next question: i have 10% into the stock program, and i cant say i feel 100% positive about that investment. would i be better off investing that money into the 401k insteaD?

 

Stock program is fine as long as it's a long-term contribution. Dollar cost averaging ftw, but it needs time to work properly.

 

ah, thanks

 

Just as a note: There is no such thing as a Roth 401k. The term "401k" is simply a tax code to the IRS, but has become synonymous with a retirement account. You're thinking of a Roth IRA, which stands for Individual Retirement Account.

 

If you think taxes are going to raise in the future, a Roth IRA is almost certainly the best option. Do you honestly think they'll start taxing Roth IRAs at disbursement after they've already been taxed when you've put money in? That seems pretty ridiculous to me.

 

Came in here to post this.

edit: I only put 2% of gross in 401k, and about 10% of my net in my roth ira.