Pre-Retirement

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Frequently Asked Questions

A: I think you should. No plan matching is a disappointment, but the contributions are still pre-tax, and the growth is tax deferred. I am also a fan of the fact that the money gets invested automatically off of your paycheck which makes it much more likely to happen over the long term.
A: I don't know how "bad" your debt is but my fear is that you will lose a lot of ground on your retirement funding. I believe in balance. Keep saving in the retirement plan (especially if there are matching funds).
A: They both grow tax deferred, so the issue is your tax rate today compared to your tax rate in retirement. For example, if your current effective tax rate is 10% or less, the Roth is a no brainer. That said, even when it's not the optimal tax solution, I do like clients to have some Roth money available in retirement. In retirement it's good to have some tax free money available
Submit a question to  Matthew Hanshaw, CFP®, NSSA®

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