I have a relative who works for an employer with no 401K plan. The person is in the 12% tax bracket. Since 401K is not available, what vehicle should this person pick to invest for retirement? Assume that this person will work until they retire in their 60's instead of FIRE.
My thought is that maxing out their Roth (if they can) is probably the best option. Since they are just starting out in this career, the expectation is that the income will go up in the future. At 12%, it is not likely that the person will have a lower tax rate in the future. Assuming that they will get a job with 401K in the future, their RMD will probably cause their tax bracket to go up.
My thought is that maxing out their Roth (if they can) is probably the best option. Since they are just starting out in this career, the expectation is that the income will go up in the future. At 12%, it is not likely that the person will have a lower tax rate in the future. Assuming that they will get a job with 401K in the future, their RMD will probably cause their tax bracket to go up.
Statistics: Posted by gavinsiu — Thu Nov 21, 2024 11:48 pm — Replies 1 — Views 116