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Coronator t1_iyb2s75 wrote

Reply to comment by zwzwzw19 in Investing more in taxable brokerage than retirement accounts by goookologist

I would only recommend this with a good 401k plan, typically from larger companies that offer plans with low fees. There are so many 401ks out there that end up having fees in the 1.5-1.75% range that completely negates any long term tax advantages, and then some.

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zwzwzw19 t1_iybg5gc wrote

Agree and disagree.. they should pursue lowest fees possible (I’m a Boglehead myself), but even with outrageous fees, if there is a positive return, the benefits of the tax advantaged plans will likely far exceed the higher fees.

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Coronator t1_iycigaa wrote

Losing 20% of your returns over the course of 20 years is far more impactful than taxes. Do a calculation to see for yourself. It’s why so many people are better off just funding their 401k to the match and then moving on to a brokerage account.

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