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Rookie financial person here: how much should I be contributing for my 401K? Should I create an additional financial account?
I am in my mid 20s, single, no large debt, six figures

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Max it out

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Emergency fund first. (3-6 months of expenses) Investing second.

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Look at your monthly bank and credit card statement for the past 3 months. Add them all up. These will be the amount you need. It’s essentially, if you lose your job today, you need to be able to pay for rent, food, and any other items”

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Pay off debt, then put aside 3-6 months of expenses in an emergency fund held in a high yield savings account. After that, if you have longterm savings goals (ie buying a house or a car), I would set annual savings goals for those and put the rest in retirement. No matter what I would always put at least 15% in retirement after you’ve paid of ALL debt and set aside your emergency fund

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Max it out. Goal is to start early. By the time you are in your 50s you will have over a million market permitting

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Get a Roth IRA and max it out. Then max out your 401k

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Depending on how much you can contribute to retirement, go in this order:

1. Put enough in 401k to get full company match if applicable. For Deloitte, this would be 6%. No idea for EY. Often this match is peanuts, but it is free, guaranteed money.
2. Max out a Roth IRA. This way you are not limited to investment options of your 401k. Traditional IRA is also fine here. Research to determine which you prefer, there are arguments for both.
3. Max out 401k.

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Maxing it out is a pretty safe, easy strategy. But, for plenty of reasons you may want to invest in multiple paths. For example, if company match is low and your earnings are relatively low, it doesn’t yield as much benefit. And if it diverts all of your capital (outside of emergency funds) it can be a big pain to take it out, even for qualified events without penalty. I’d suggest splitting between 401k and a trading account and exercising the same discipline, but if you absolutely needed capital you can liquidate.

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Max out the contribution match. You’ll be glad you did. Your generation is going to live a lot longer than us old farts in our 40s. Most retirement planners/calculators haven’t accounted for this. Beyond your match amount, maybe look at a HSA, since even a nominal monthly donation will be a ton by the time you’re in your 40s and 50s in case you need it.

Start with 3-6 months of expenses; keep it in cash or better yet a high yield savings account (I use Capital One). Use this for emergencies only. EY offers Roth 401k plans, so no need for a separate Roth IRA yet. Assuming you’re in a moderate COL area, you should be able to max out the 2020 (I think it’s $19.5k) contribution making 6 figures. Still have money left over? IRA, either style. When doing my budget I also add $200 a month for “fuck ups”, like speeding tickets, random fees, etc... That helps me not even dip into the emergency fund.

I do 6% pretax and 4% Roth 401k. Then I opened an acorns account that accrues behind the scenes, keeping me in the market without ever looking at it. I’ve found this is a pretty good strategy as someone in their mid twenties.

Thank you all for your input!

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