Am I investing too little? 11% 401k, 2% Roth and 2% ESPP. ~50% of my aftertax income is wrapped up in non-negotiable expenses but seeing analysts invest WAY more 401k and up to 15% ESPP

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ESPP is generally free money, why not max it?

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Invest what you can afford to invest. Don't compare it to what others are investing. Your financial situation and lifestyle are not identical to theirs.

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M2, if that's the case, then stop 401k contributions and divert to emergency fund where you should try to have 6 months anyway. Consider the ESPP float part of that fund and allow draw down accordingly (and re-fund once the purchase occurs). Allows you to earn double digit returns risk free (depending on the ESPP discount)

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Max your 401k

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10% is the espp max but it's a guaranteed 15% return. Free money so go all in but if liquidity is an issue, just sell immediately at the 6 month mark

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Honestly it depends on your financial situation going into your jobs. First goal should be to pay down any debt you may have (eg., student loans, credit card debt, etc). Then, you should try to max out your 401k and take advantage of full company match. From there, it’s all up to you!

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@M1, some people can't afford to have their cash tied up for 6 months

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It’s almost always correct to maximize your company matching for 401k before paying down debt. This doesn’t mean the full 18.5k or whatever it is now. Just maximize your company match. Think about it this way: your employer match + expected investment returns is greater than most interest rates you are paying.

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Here's the order I generally follow: 1. 401k up to employer max (6% at ACN) 2. Establish emergency fund. 3. Max Roth IRA. 4. Pay off loans 5. Max 401k 6. Max HSA. Think of espp as a 1.5% raise. If you can afford to wait 6 months, it will make all of the balancing a little easier

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Try maxing your HSA if you use HDHP

I thought you can only do up to 10% ESPP?

Yes, 10% is the max - that’s my bad!

^Don't forget the majority of people can't contribute to roth, especially if married

Backdoor Roth, after non deductible traditional IRA. Also mega backdoor if able too

A2, I’d max hsa before 401k; more tax benefits

Max 401(k) and then max ESPP (holding the shares is a separate decision) but then do what you want.

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