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Where is a new build???
KPMG fam when do we receive our 401k match?
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Chief
VTSAX
Buy total stock market index and just forget about it for about 25 years. You will be light years ahead of others.
Due to your young age, look into some higher risk options
If I were you I would put it in VOO.
401k is typically has a limited number of options. You want low cost index funds. VTSAX suggested above is a good example that may be available to you, VOO is an ETF and likely won’t be available but you may have an S&P 500 fund available to you. You are young so I’d recommend 100% equity and 0% bonds but you need to decide what your risk tolerance is. Will you panic if the market drops? Or can you remember that you are a long way from retirement and stay the course?
VTSAX (mutual fund) and VOO (ETF) are tickers ETF=exchange traded fund ETFs and mutual funds are both financial instruments that allow you to invest in a broad basket of stocks.
Buy total stock market. Set it and forget it. If you want different options open a ira. Most 401k plans don’t have great options. Just keep buying
Also sign up for the own sap program for the employer match.
Yes will be enrolling into OWN SAP as well.
And max out on your HSA contribution, assuming you signed up for the CDHP health plan. Employer cash match is free money. When you retire you convert it to an IRA or have money set aside for medical expenses. You can also invest HSA money like an IRA. I pay medical bills with cash back credit card and then reimburse myself from the HSA. If the cost is small, I don’t bother so that the HSA can grow.
Whenever you get a raise, increase your savings by the same percentage, while keeping your expenses the same. This becomes significant over time as others have already mentioned. This approach has allowed me to be debt free while living on only 50% of my income and I’m nowhere near retirement age.
Go for ETFs with low expense ratios. I'd be at 100% stocks at your age.
Also open a Roth IRA while your salary is low and (I assume) you aren't yet married (there are income limits). Max out Roth yearly after you contribute enough to get your 401k employer match!
Whatever you do…max out and live with the lower income early on. It’s much harder to do it the other way and tell yourself you’ll increase contribution. Every year your salary goes up, it is like 100% flow through (except taxes) so you just watch that account grow.