I wouldn’t necessarily say this is always the case. The tax advantaged portion of a 401k is limited to $23k unless your plan allows for megabackdoor Roth or in-plan Roth conversions. Taxable has no limit. A very high salary allows for maxing out the 401k as well as taxable investing. The taxable account could grow faster than the 401k. This is especially true with tax efficient investing where stocks and total market funds are in taxable and the 401k could have more bonds.Your post indicates that you know pretty much what to do. In the 35% bracket you are making good dough, and as you contribute, your workplace accounts will likely start to swamp the taxable. So, you have time to work on your taxable as it becomes a smaller part of your total.
You are right, more accurately, contributing $50k a year to 401k , and then buying a lot more TSM in taxable, will likely soon overwhelm the existing hodgepodge.
Statistics: Posted by mhadden1 — Thu Aug 22, 2024 10:19 pm