Traditional or Roth 401k for my daughter

[Scallywag]

And she’ll probably get a couple million more when we check out. I think she’ll be okay.

Indeed. First of all, congratulations on her new job. What will she be doing (if you can share)?

I also vote for the ROTH. In fact, I told my own kid to put all her $$$$$$ into ROTH (her income isn't that high) because she needs no real "emergency funds" (what are parents for? lol). She actually wants some cash stashed away but I told her we'll help her if she ever gets into real difficulties. Granted, our own finances are nowhere close to as solid as yours, Steve, but she'll have a home and use of our vehicles if it ever came to that. The point is, the kids need to max out now when they are young and are single / have no dependents because that may eventually not be possible (esp if their incomes - for whatever reason (good or bad) and unfortunately - simply do not keep up with COL).

Good for your daughter ... I wish her the best. An almost 4.5M retirement eventually sounds awesome!

[disneysteve]

First of all, congratulations on her new job. What will she be doing (if you can share)?

It's not that new of a job. Actually, next month she'll be there a year. She was eligible to contribute to the 401k from the start, but they only offer a match f you're there at least a year. Since there was no match, I advised her not to participate and just max her Roth IRA instead. But with the 1-year mark approaching, it was time for her to enroll in the plan.

She is working for a solar and roofing company. She originally applied for their front desk position. After her first interview, they told her she was too good for that job and subsequently brought her back for a 2nd, 3rd, and 4th interview, each time meeting with different staff members. They finally hired her as the assistant to the Sales Manager, a position that was created for her. She was not doing sales herself but rather handling the office support for the sales team. Everyone was really impressed with her and at her 90-day review in September, they offered her a promotion to the Operations department as the Funding Manager. Nice pay jump with the promotion. Essentially what she does is oversee the financing of the jobs to make sure that everything is being submitted properly so that they get paid for the jobs they're doing. Each of the finance companies has slightly different requirements before they'll release the funds so she coordinates all of that.

[Scallywag]

It's not that new of a job. Actually, next month she'll be there a year. She was eligible to contribute to the 401k from the start, but they only offer a match f you're there at least a year. Since there was no match, I advised her not to participate and just max her Roth IRA instead. But with the 1-year mark approaching, it was time for her to enroll in the plan.

She is working for a solar and roofing company. She originally applied for their front desk position. After her first interview, they told her she was too good for that job and subsequently brought her back for a 2nd, 3rd, and 4th interview, each time meeting with different staff members. They finally hired her as the assistant to the Sales Manager, a position that was created for her. She was not doing sales herself but rather handling the office support for the sales team. Everyone was really impressed with her and at her 90-day review in September, they offered her a promotion to the Operations department as the Funding Manager. Nice pay jump with the promotion. Essentially what she does is oversee the financing of the jobs to make sure that everything is being submitted properly so that they get paid for the jobs they're doing. Each of the finance companies has slightly different requirements before they'll release the funds so she coordinates all of that.

Wow...!!! So happy to hear that !!! That experience will really help her, if she decides to go into lending or accounts payable / receivable exclusively later one. Between the ROTH and the hopefully ROTH 401K, she should be FAT FIRED earlier than she expects. All the very best to her!!!!!!!!!!

[disneysteve]

Wow...!!! So happy to hear that !!! That experience will really help her, if she decides to go into lending or accounts payable / receivable exclusively later one. Between the ROTH and the hopefully ROTH 401K, she should be FAT FIRED earlier than she expects. All the very best to her!!!!!!!!!!

Thanks. And I just realized when I said her 1 year was next month that this is already June. Her year is actually up best week.