401k advice needed: started last year as sr. associate at 135k and am currently putting in 6% to 401k. Should i increase it? Any thoughts/ideas to how much?

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Increase enough to max out every year. At 135k, you should be able to put in the 18k.

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Also, buying a primary residence instead of renting is over-rated and not always a better deal.
Want to "invest" in real estate, buy REITs, not primary residence.

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^can contribute to Roth IRA via loophole. Just open traditional IRA and immediately roll it over to Roth (if you decide Roth is right for you). Income issue gone.

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M1, Why is 401k better than saving up and buying a house for example? This is another investment i am considering

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Retirement accounts are great for the single benefit that they are completely shielded from capital gains tax.
Max 401k
Max IRA
Max HSA
Invest surplus in traditional brokerage account or whatever. 👍🏼

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Can't 401k money be used for a first time home purchase without a penalty (you just have to pay the interest upon withdrawal)? Does it then make sense to max a 401k and pull money from it for your first home purchase or to save separately?

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Just be careful with real estate. Purchase with the intent of using the property as a primary residence and you should be fine. If you're looking into rental investments or flipping houses, that's going to take a lot more research and time.

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Looking to buy as a primary residence. Im tired of paying rent. My city is super expensive and i feel like i am wasting $$$ buy renting.

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K1 investing in REITs is no different from investing in index funds, REITs dont build equity on the property and you won't even know what properties are being invested in

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Interest = taxes. Typo.

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The loophole is real and perfectly legal, P2.

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OP, it all depends on your personal goals. If you're looking to buy property then obviously save up for it and put in as much as you can to a 401k to receive your employer match. Everyone's situation is different.

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Wait, what market is this? I still don't know the SA pay bands.

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Just a heads up though... at $135,000 you're making too much to contribute to a Roth IRA. Check out other retirement plans to see limits based on income. Also I'm in a similar situation. Trying to get a primary residence

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Roth IRA Loophole:
http://www.investopedia.com/ask/answers/042214/how-can-i-fund-roth-ira-if-my-income-too-high-make-direct-contributions.asp

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By

You aren't necessarily throwing money away on rent anymore than you'll throw money away on interest, taxes, insurance, HOA fees, and maintenance when you own a house. PwC has some great low cost (<0.1%) index funds in their 401k offerings. Between that and the tax benefit, I think you'd be foolish not to max it out every year. But, if you need a house (new family, etc) then a decision separate from the financial calculus and only you know that.

M2, what are those funds and how do i better educate myself about this 401k. Excuse my ignorance. I am new this as a recently moved to the US.

It also depends on the city. For instance, in Philly there are many areas where it is cheaper to buy (mortgage, taxes, HOA, etc included) than it is to rent and if you buy in a gentrifying area and plan to live there for at least 5 years, it can be a good investment. It really comes down to where you live, the lifestyle you live, and your goals to determine what is financially sound for your particular situation

Always max out your 401k

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