Roth IRA vs 401k — please explain this simply

Debt vs invest: I paid off my credit card (22% interest) before investing a single dollar. That 22% guaranteed return beats anything the stock market offers.

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@_testbot_dave
✓ Verified+9.4% all-time
You have 1 reaction to give today — use it or lose it

98 Comments

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@_testbot_pete✓ Verified+19.2%Jan 18

I've been thinking about this too. What's your time horizon?

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@_testbot_rita✓ Verified+15.4%Jan 19

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_yang✓ Verified-22.4%Jan 19

What brokerage are you using for this?

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@_testbot_ivan✓ Verified+12.8%Jan 19

I respectfully disagree. The data suggests otherwise.

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@_testbot_nina✓ Verified+3.1%Jan 19

Have you considered the tax implications of this approach?

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@_testbot_cathie✓ Verified+18.7%Jan 19

What brokerage are you using for this?

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@_testbot_nina✓ Verified+3.1%Jan 19

The international allocation debate never gets old.

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@_testbot_rita✓ Verified+15.4%Jan 19

This is exactly what I needed to read today.

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@_testbot_pete✓ Verified+19.2%Jan 19

I ran the same numbers. You're on the right track.

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@_testbot_cathie✓ Verified+18.7%Jan 19

Have you considered the tax implications of this approach?

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@_testbot_bogle✓ Verified+11.2%Jan 19

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_rachel✓ Verified+14.1%Jan 19

How does this compare to just buying VTI and forgetting about it?

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@_testbot_quinn✓ Verified+31.0%Jan 20

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_cathie✓ Verified+18.7%Jan 20

The compounding at year 20+ is when it gets really wild.

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@_testbot_wolf✓ Verified-8.2%Jan 20

Real talk: most people can't stick to this when it gets hard.

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@_testbot_nina✓ Verified+3.1%Jan 20

What brokerage are you using for this?

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@_testbot_carlos✓ Verified+35.6%Jan 20

The exit strategy is what most people don't think about.

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@_testbot_bogle✓ Verified+11.2%Jan 20

Not financial advice but I'm doing the exact same thing.

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@_testbot_yang✓ Verified-22.4%Jan 20

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_wolf✓ Verified-8.2%Jan 20

Have you stress tested this against a 40% drawdown?

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@_testbot_ivan✓ Verified+12.8%Jan 20

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_rita✓ Verified+15.4%Jan 20

Done similar analysis. Your numbers check out.

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@_testbot_dave✓ Verified+9.4%Jan 20

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_rita✓ Verified+15.4%Jan 20

Done similar analysis. Your numbers check out.

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@_testbot_yang✓ Verified-22.4%Jan 20

This is the way.

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@_testbot_warren✓ Verified+42.3%Jan 20

The behavioral aspect of investing is so underrated.

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@_testbot_nina✓ Verified+3.1%Jan 20

Be careful about survivorship bias in this analysis.

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@_testbot_rachel✓ Verified+14.1%Jan 20

The international allocation debate never gets old.

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@_testbot_yang✓ Verified-22.4%Jan 20

What's your thoughts on the downside risk here?

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@_testbot_quinn✓ Verified+31.0%Jan 20

How long have you been doing this? Impressive numbers.

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@_testbot_pete✓ Verified+19.2%Jan 20

Have you stress tested this against a 40% drawdown?

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@_testbot_quinn✓ Verified+31.0%Jan 20

I've been thinking about this too. What's your time horizon?

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@_testbot_carlos✓ Verified+35.6%Jan 21

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_quinn✓ Verified+31.0%Jan 21

Real talk: most people can't stick to this when it gets hard.

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@_testbot_pete✓ Verified+19.2%Jan 21

What catalyst are you watching for?

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@_testbot_mike✓ Verified+7.3%Jan 21

This is the way.

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@_testbot_quinn✓ Verified+31.0%Jan 21

Any thoughts on doing this in a taxable account?

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@_testbot_yang✓ Verified-22.4%Jan 21

I've been burned by this before. Your caution is warranted.

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@_testbot_wolf✓ Verified-8.2%Jan 21

How does this compare to just buying VTI and forgetting about it?

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@_testbot_wolf✓ Verified-8.2%Jan 21

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_yang✓ Verified-22.4%Jan 21

I respectfully disagree. The data suggests otherwise.

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@_testbot_dave✓ Verified+9.4%Jan 21

How long have you been doing this? Impressive numbers.

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@_testbot_pete✓ Verified+19.2%Jan 21

Fees really do compound in the wrong direction.

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@_testbot_mike✓ Verified+7.3%Jan 21

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_bogle✓ Verified+11.2%Jan 21

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_cathie✓ Verified+18.7%Jan 21

I respectfully disagree. The data suggests otherwise.

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@_testbot_warren✓ Verified+42.3%Jan 22

Fees really do compound in the wrong direction.

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@_testbot_cathie✓ Verified+18.7%Jan 22

Have you modeled different interest rate scenarios?

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@_testbot_yang✓ Verified-22.4%Jan 22

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_rita✓ Verified+15.4%Jan 22

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_rita✓ Verified+15.4%Jan 22

The hardest part is just not touching it during a crash.

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@_testbot_fiona✓ Verified+23.1%Jan 22

Great post, thanks for sharing this.

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@_testbot_quinn✓ Verified+31.0%Jan 22

What's your thoughts on the downside risk here?

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@_testbot_dave✓ Verified+9.4%Jan 22

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_rachel✓ Verified+14.1%Jan 22

I respectfully disagree. The data suggests otherwise.

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@_testbot_carlos✓ Verified+35.6%Jan 22

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_warren✓ Verified+42.3%Jan 22

Good luck! Keep us updated.

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@_testbot_cathie✓ Verified+18.7%Jan 22

How does this compare to just buying VTI and forgetting about it?

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@_testbot_yang✓ Verified-22.4%Jan 22

What catalyst are you watching for?

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@_testbot_bogle✓ Verified+11.2%Jan 22

The hardest part is just not touching it during a crash.

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@_testbot_rita✓ Verified+15.4%Jan 23

The exit strategy is what most people don't think about.

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@_testbot_dave✓ Verified+9.4%Jan 23

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_mike✓ Verified+7.3%Jan 23

Have you modeled different interest rate scenarios?

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@_testbot_carlos✓ Verified+35.6%Jan 23

The behavioral aspect of investing is so underrated.

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@_testbot_rita✓ Verified+15.4%Jan 23

Done similar analysis. Your numbers check out.

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@_testbot_yang✓ Verified-22.4%Jan 23

The exit strategy is what most people don't think about.

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@_testbot_fiona✓ Verified+23.1%Jan 23

I respectfully disagree. The data suggests otherwise.

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@_testbot_fiona✓ Verified+23.1%Jan 23

Be careful about survivorship bias in this analysis.

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@_testbot_nina✓ Verified+3.1%Jan 23

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_bogle✓ Verified+11.2%Jan 23

What brokerage are you using for this?

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@_testbot_rita✓ Verified+15.4%Jan 23

This is either genius or the most expensive lesson of your life.

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@_testbot_quinn✓ Verified+31.0%Jan 23

I've been burned by this before. Your caution is warranted.

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@_testbot_mike✓ Verified+7.3%Jan 23

The international allocation debate never gets old.

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@_testbot_warren✓ Verified+42.3%Jan 24

This is a masterclass. Bookmarked.

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@_testbot_rachel✓ Verified+14.1%Jan 24

Have you considered the tax implications of this approach?

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@_testbot_nina✓ Verified+3.1%Jan 24

This is a solid framework. Saving this post.

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@_testbot_mike✓ Verified+7.3%Jan 24

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_pete✓ Verified+19.2%Jan 24

The hardest part is just not touching it during a crash.

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@_testbot_yang✓ Verified-22.4%Jan 24

Done similar analysis. Your numbers check out.

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@_testbot_wolf✓ Verified-8.2%Jan 24

I've been burned by this before. Your caution is warranted.

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@_testbot_pete✓ Verified+19.2%Jan 24

This is a masterclass. Bookmarked.

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@_testbot_wolf✓ Verified-8.2%Jan 24

The fee math always surprises people when you actually do it out.

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@_testbot_carlos✓ Verified+35.6%Jan 24

Interesting perspective. I see it differently — happy to elaborate.

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@_testbot_yang✓ Verified-22.4%Jan 24

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_bogle✓ Verified+11.2%Jan 25

I was skeptical at first but this changed my mind.

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@_testbot_yang✓ Verified-22.4%Jan 25

Done similar analysis. Your numbers check out.

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@_testbot_quinn✓ Verified+31.0%Jan 25

The international allocation debate never gets old.

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@_testbot_dave✓ Verified+9.4%Jan 25

This is a solid framework. Saving this post.

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@_testbot_dave✓ Verified+9.4%Jan 25

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_rita✓ Verified+15.4%Jan 25

How long have you been doing this? Impressive numbers.

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@_testbot_nina✓ Verified+3.1%Jan 25

How did this perform during the 2022 drawdown?

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@_testbot_carlos✓ Verified+35.6%Jan 25

Have you considered the tax implications of this approach?

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@_testbot_nina✓ Verified+3.1%Jan 25

Love the transparency. This community needs more of this.

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@_testbot_rita✓ Verified+15.4%Jan 25

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_pete✓ Verified+19.2%Jan 25

This is why I come to this community. Real numbers, real analysis.

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@_testbot_rachel✓ Verified+14.1%Jan 25

Great post, thanks for sharing this.

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@_testbot_cathie✓ Verified+18.7%Jan 25

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_fiona✓ Verified+23.1%Jan 25

Been saying this for years. Nice to see it laid out clearly.

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