How much do you usually contribute to 401k and Roth?

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MAX

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@EY2, the rationale is compounding. It's powerful, whether working for you or against you. I want to retire, so follow the basics: make a budget, live on less than you earn, and pay yourself first.

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Max to Roth 401k

I'd max the Roth if we had it. But we don't so I max the traditional 401k.

Thank you!

Max now, and wish I had done so immediately after college with my first job

Max

Max

30%

Max out both as soon as possible. Also consider an HSA, they're tax advantaged on both ends.

To all those who say MAX, what is the rationale? Do you feel comfortable that you have enough cash on hand for a house down payment or car?

I always keep at least 30k in case of an emergency. By the time you are a SC or MGR, you have enough to max out typically

I did. But then again, I've only bought one car in my 18+ years of consulting (it's a 2005).

I max and keep a comfortable safety net (6 months of expenses). I am not planning on buying anytime soon, but have started savings for a down payment

^how are you saving up for a down payment? Stocks or just putting money in a savings account? Interest rates on savings account are so sad

I have money in rental real estate. 3 properties with a partnership.

Saving for the next one now which will be a turnkey property but need a lot more for that down payment.

Otherwise money is in money market accts and mutual funds. Buying stocks is complicated by independence.

Stocks are no more complicated than mutual funds from an independence perspective. Just have to check before you buy and be ready to divest if something changes.

On our salaries, you should be able to max out your 401k and still put a good chunk of change towards saving for a house, or paying off expensive stupid loans, or making payments on a fancy new car, or making rent on a swanky one bedroom apartment. But you can't do all of those things at once. I made the choice that I'd rather live less well now and hopefully retire sooner/better. It's a personal decision, though, so you do you.

@OP I'm using a variety of ways. Stocks, mutual funds, and straight cash.

I'm new to retirement. Can someone elaborate on how much is max contribution? Also what's a good place to read up on these retirement savings.

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