Reply to New life as single mom- how to optimize/will I be ok?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]The money in retirement will grow slower than the money in your regular investment account and Roth IRA. Money in regular investment account is not taxed until you sell the stock/ETF and even then, it can be nearly 0% plus whatever your state tax is. You are in total control of your money here, but max out Roth first.
The money in retirement accounts, traditional IRA and 401k, will be taxed higher than long term capital gains in investment account. 
Traditional IRA and 401k have fees, rules, bad investment choices, penalties, RMD. The match and the tax deduction do not make up the negative aspect of those retirement accounts. The money you lose in the two retirement accounts, will compound forever for someone else.
Do not get sucked in by the match and tax deduction. 529 is just as bad if not worse.
Investing is not a rocket science. You will learn so much and will get much better returns than the bank/administrator. They are not allowed to invest the way that is best for you. You are. They don't know your personal situation. They do bare minimum for everyone while getting max fees.
Learning how to invest should be your focus. This is something you hand down to your kids.
$20k a year into Voo, VTI, and QQQ in Roth and regular account the next 20 years and you are all set.
I retired 5 years after I started to invest. What I learned is more valuable than the money I have now. 401k has never taught anyone anything. perhaps to stay away.
While you wait for the daycare to end, learn all about personal finance from books and even youtube.

Love this comment. Very valuable information.

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Not all correct though. Retirement accounts really depend on your employer. The match IS worth it because that’s free money. At least do that much, most financial advisors will say the same. As for whether it will grow or not, it depends on if you are able to choose the fund and the fees. My employer has a Roth 401k which means it can grow and I can take it out untaxed. Mine is currently invested in the S&P500 with a low fee.

In addition to the PP’s about why you might not invest in a 401k, is that if you want access to the money before you reach the age of 59.5. So I will invest in mine to the employer match and then put the rest in my Roth IRA and taxable. [/quote]

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