Hey everyone. Gathering the wealth of knowledge available on these pages and trying to put my finances in order. Would appreciate some insight.
I'm a partner in a 20 member private group (K1), 37 years old. I currently max out my 401k and HSA. Also have backdoor Roths for my wife and I. Student loans have been consolidated and being paid down aggressively despite relatively low interest rates (highest is 3.375).
A cash balance plan is available to me through my group. I'm told that their 'aim' is 5-6%, whatever that means, but obviously have been well above that with the recent financial environment. Older guys in my group say its a great option for reducing taxable income, so I began thinking of contributing. But then I ran into a friend's financial advisor the other day and curbside him. He started saying I'm far too young to invest in cash balance plans, especially considering I'm not at my peak earnings. He recommended that I invest in a market account now, leave the cash balance for when I'm older and making more. So what gives? What am I missing here?
I'm a partner in a 20 member private group (K1), 37 years old. I currently max out my 401k and HSA. Also have backdoor Roths for my wife and I. Student loans have been consolidated and being paid down aggressively despite relatively low interest rates (highest is 3.375).
A cash balance plan is available to me through my group. I'm told that their 'aim' is 5-6%, whatever that means, but obviously have been well above that with the recent financial environment. Older guys in my group say its a great option for reducing taxable income, so I began thinking of contributing. But then I ran into a friend's financial advisor the other day and curbside him. He started saying I'm far too young to invest in cash balance plans, especially considering I'm not at my peak earnings. He recommended that I invest in a market account now, leave the cash balance for when I'm older and making more. So what gives? What am I missing here?
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