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I was looking into dividend investing for a passive income for the far future. My question is, do people still contribute to their Employer retirement accounts/ IRAs while doing this? Do they contribute up to the match and invest the rest of that money into their dividend portfolio?

  • Some people have the ability to invest beyond the limits imposed by either their employer or IRS. Yes to the first question, and I suppose some do to the second question. – Pete B. Mar 7 at 19:23
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How much someone does invest in their Employer retirement accounts/ IRAs varies from person to person. I don't know many people who decide to skip the employer match (if their company provides one).

Do they contribute up to the match and invest the rest of that money into their dividend portfolio?

Many people find this as an acceptable way to save for retirement without missing out on the "free money" from the company match while still having money in a brokerage account (that is non-retirement) or savings account that is readily accessible and has not withdrawal penalties.

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I was looking into dividend investing for a passive income for the far future.

This isn't answering what you asked, but dividend investing is usually done for current income, not future income. Dividend stocks go down in value by the amount of their dividend (all else being equal). So if you are investing for the "far future" I would instead look at the total return of stocks (meaning price growth plus dividends), not just dividend stocks. You might actually be worse off investing in dividend stocks than in stocks that have good long-term growth prospects but pay no dividends.

To answer the question, though, certainly there are some that invest in a 401(k) and IRA and also invest on non-tax deferred accounts. It all depends on the investment horizon and investment levels (meaning if tax-advantaged accounts are maxed out).

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