Just a comment that may or may not apply to your specific situation - if there is an employer match with the 401k the annual match is maximized by a combination of contributing at least the minimum % to maximize the match in every payroll period and to do this over the full calendar year. Bunching contributions eliminates or reduces the match in payroll periods with contributions lower than the maximum match rate and, of course, are zero during periods with no contributions.
A very interesting perspective. I also apply valuation discounts to account for estimated taxes. Thanks for sharing a fairly detailed analysis with a representative example.
I fully agree with your sentiments. I don't over insure and 40 years of building and now living off my portfolio assets has given me the confidence I need to successfully DIY my personal finances. I have always had a great interest in personal finance topics and consider myself highly educated in the specific areas of my interest. I don't expect that most folks (as I've learned through family and friends) will be as interested or motivated to successfully do the same.
Comments
Just a comment that may or may not apply to your specific situation - if there is an employer match with the 401k the annual match is maximized by a combination of contributing at least the minimum % to maximize the match in every payroll period and to do this over the full calendar year. Bunching contributions eliminates or reduces the match in payroll periods with contributions lower than the maximum match rate and, of course, are zero during periods with no contributions.
Post: Summer Relief
Link to comment from August 2, 2021
A very interesting perspective. I also apply valuation discounts to account for estimated taxes. Thanks for sharing a fairly detailed analysis with a representative example.
Post: Portfolio Acid Test
Link to comment from June 15, 2021
Thanks for the article. You make several excellent points.
Post: Showing the Way
Link to comment from March 28, 2021
I fully agree with your sentiments. I don't over insure and 40 years of building and now living off my portfolio assets has given me the confidence I need to successfully DIY my personal finances. I have always had a great interest in personal finance topics and consider myself highly educated in the specific areas of my interest. I don't expect that most folks (as I've learned through family and friends) will be as interested or motivated to successfully do the same.
Post: A Less Risky Life
Link to comment from March 27, 2021