Traditional vs. Roth..?

Investing
#1

Hi Jeremy/PFC,

I am interested to know why you only advise to contribute up to the company match for 401Ks?

I have heard arguments for both and was just interested in your reasoning for the Roth preference. I will be in an interesting situation soon where my new employer will contribute 50% of whatever I contribute to 401K (up to the maximum amount an individual can contribute).

Would you then prefer to take advantage of the company’s match and try to max out your 401K before anything else?

Looking forward to your thoughts. Thanks!
-Richard

#2

Hey @lrichard!

Yes, I would max out that match before investing anywhere else. Likely even before paying debt since it’s free money (you could then theoretically use to pay debt).

And I don’t suggest only contributing up to the match, rather that it’s the FIRST thing you prioritize, since it’s free money.

I’d work down this checklist!