- The employers catch up on the missing match at the end of the year, via as year-end true-up contributions. Should one max out one's 401(k) at the beginning of the year?
- I have no idea how to time the market. I.e., I have no predictions regarding whether the market will go up or down.
- I simply invest all the wages I receive (401k or not) in broad, low-fee index ETFs, such as BND, VTI, VWO, VPL and VXUS.
- I contribute to both 401(k) and Roth 401(k).
- I have no plan to stop working (= stop contribute to the 401(k)).
Pros of maxing out one's 401(k) at the beginning of the year that I am aware of:
- Placing as much money as early as possible in tax-advantageous bank accounts.
Cons of maxing out one's 401(k) at the beginning of the year:
- Year-end true-up contributions come a bit late.
- Investing via a lump sum is the contrary of the dollar cost averaging investing strategy, which is typically recommended for the clueless investors such as myself.
Given all that, and possibly including pros/cons I might have missed, should one max out one's 401(k) at the beginning of the year?
I have read many webpages about that topic via Google, but 1) no actual simulation 2) nothing beyond the simple pros/cons I mentioned in this question.