Capping 401ks at $2400

[Palmetto Duck]

I have maxed out the pre-tax stuff for most of my adult life. If tax rates drop enough, I might switch but I still believe two things 1) taxes will be the same or lower when I retire and 2) I will be in a lower tax bracket (based on annual income) when I retire.

So what? You're probably right. But op was talking about not using retirement accounts and saving after tax dollars. You're maxing out your retirement accounts.

[Moonlight Hunter]

I cashed out my IRA's and bought gold bouillon. How am I doing?

[ecu1984]

I don't believe it will happen either. But your tax logic is fucked up as a football bat. I'm constantly amazed by how much knowledge can be found on this site, with the exception of financial knowledge. This is a prime example. You take a 20-50% tax hit on your income depending on how much you make which determines your tax bracket and invest the rest in a similar risk portfolio as me Investing the entire amount pretax and you'll NEVER make up that tax hit. On top of that if you're invested in securities, you pay taxes on gains every year even if you don't take a distribution on interest, short term capital gains and dividends depending on whether they're qualified or nonqualified as income. That's the same tax rate as what you pay on your earnings. Your logic is fooked!! You can NEVER outperform tax deferred grow with pretax money by investing after tax money in a taxable account all other things being equal.

What he said - max it out and let it ride. I do change my funds occasionally to the hottest trending but not too often. Company match is where it's at. Any idiot knows free money can't be beat.

[Rubberhead*]

So what? You're probably right. But op was talking about not using retirement accounts and saving after tax dollars. You're maxing out your retirement accounts.

Sorry, I was just saying that I think 401k accounts are good retirement vehicles for individuals but not necessarily good for the "market" because 401ks can send the wrong message at times.

[Stripa Swipa]

I'd appreciate the freedom to contribute more to my Roth and continue to invest on the momentum created by the phenomenon Rubberhead is referring to. Lobbying incentives for Roths are probably much lower though so freedom and self reliance will get the short end of whatever the new tax plan stick turns out to be.

[marsh chicken]

Everyone will move to Roths.

Not everyone can contribute to a Roth.