{ "media_type": "text", "post_content": "I currently contribute 8% ($6.4k yearly) to 401k and max our HSA & ROTH IRA. After that + regular spending, I have about $1k per month that I invest in a standard brokerage account. \n\nTraditional advice says to max out 401k before standard brokerage, but I also want to save for a down payment on a house in 7-10ish years. Do you think this is a good approach, or would you recommend more/less to retirement? I plan on contributing more to 401k as my salary increases. I’m 23 now", "post_id": "61e89bed9501f8003719ad63", "reply_count": 16, "vote_count": 4, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter", "feed_type": "bowl" }

I currently contribute 8% ($6.4k yearly) to 401k and max our HSA & ROTH IRA. After that + regular spending, I have about $1k per month that I invest in a standard brokerage account. Traditional advice says to max out 401k before standard brokerage, but I also want to save for a down payment on a house in 7-10ish years. Do you think this is a good approach, or would you recommend more/less to retirement? I plan on contributing more to 401k as my salary increases. I’m 23 now

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7-10 years is a long time. I would max the 401k until youre 3ish years out from buying then pull back till the match%. Also fyi you can borrow against your own 401k for first home up to 50k

likehelpful

ASM1, some plans allow you to roll over loans.

I invested more heavily in taxable brokerage in my younger years for this reason and have no regrets - easily bought the house we wanted with 20% down and (financial) room to spare for the inevitable maintenance. Be sure to factor in your state and federal tax burden when you sell eventually though, it can hurt. I'd question why you are not prioritizing your 401k over an individual IRA, but that's off topic.

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I think the benefits of a Roth IRA is that you have more choices and you have access to your contributions at any time if needed.

likehelpful

Keep doing what you’re currently doing. I’ve been doing the same for four years now and having the flexibility with $200K in a brokerage account in my 20s is great

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I quit contributing to IRAs. Even though I can save taxes, I’m going to retire at 42 and I can’t do that if most of my wealth is locked up in assets I’ll pay steep penalties to touch. I’m 36. All in taxable brokerage.

Single. Not planning to be married nor produce children. $1.5M to be on the safe side. I will probably hit it before 42 so that’s conservative.

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