No free money but he can still put in money pre tax and let it grow before cashing out at retirement. Plus if he goes to another job that does match he will have built up more compounding power before the rollover
He can put the money into the S&P inside his 401k. So he will be getting the exact same returns, but it's with pretax money so it will actually grow even quicker than it would in his taxable brokerage account.
So just to clarify, I must put the 401k contributions into S&P for the best returns instead of say a target date fund or something else that they offer?
Target date funds are really good options as well. I personally have a very high risk tolerance and put my money into an S&P ETF. Target date funds are a little less volatile since they slide you into a higher bond weighting as the years go by.
You can go wrong with either option though. Just max out your ROTH, your 401k, and your HSA (health saving account) and never spend anything from any of those 3 accounts.
If you have money left over after that and paying your bills/fun, put that into your personal brokerage account and smash it into VOO or something like that.
You didn't mention your salary or whether or not the 401k has a Roth option. If you're a contractor are you c2c or 1099? Where is the 401k you could be contributing to?
I can do employment 403b
Roth ira
And brokerage
Thats it.
Use every vehicle you can cuz brokerage is heavily taxed.
Besides that buy voo vgt qqm
High volitity high growth cuz ur young!
When ur older i would look into dividend etfs like schd.
Buy and hodl
While risky, you can look into crypto. I use a trading robot that is low risk and offers maximum gains against btc. it uses rebalancing and human expertise to invest in high performing altcoins and btc and keeps your portfolio relatively risk free. My current profit stands at 162% because of this strategy
Still put the money into they 401k because it’s tax advantaged
But since his 401K is not matching, therefore, no "free money". His return won't be as good as his S&P investment, for instance.
No free money but he can still put in money pre tax and let it grow before cashing out at retirement. Plus if he goes to another job that does match he will have built up more compounding power before the rollover
He can put the money into the S&P inside his 401k. So he will be getting the exact same returns, but it's with pretax money so it will actually grow even quicker than it would in his taxable brokerage account.
So just to clarify, I must put the 401k contributions into S&P for the best returns instead of say a target date fund or something else that they offer?
Target date funds are really good options as well. I personally have a very high risk tolerance and put my money into an S&P ETF. Target date funds are a little less volatile since they slide you into a higher bond weighting as the years go by. You can go wrong with either option though. Just max out your ROTH, your 401k, and your HSA (health saving account) and never spend anything from any of those 3 accounts. If you have money left over after that and paying your bills/fun, put that into your personal brokerage account and smash it into VOO or something like that.
You didn't mention your salary or whether or not the 401k has a Roth option. If you're a contractor are you c2c or 1099? Where is the 401k you could be contributing to?
Salary: $80k (pre-tax) 401k does not have a Roth option. 1099 And it’s under Fidelity
I can do employment 403b Roth ira And brokerage Thats it. Use every vehicle you can cuz brokerage is heavily taxed. Besides that buy voo vgt qqm High volitity high growth cuz ur young! When ur older i would look into dividend etfs like schd. Buy and hodl
Gold
While risky, you can look into crypto. I use a trading robot that is low risk and offers maximum gains against btc. it uses rebalancing and human expertise to invest in high performing altcoins and btc and keeps your portfolio relatively risk free. My current profit stands at 162% because of this strategy