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Whatever gets you to the max.
6% assuming your firm matches it
69.420%
It’s actually X Æ A-Xii Musk.
Rising Star
Max the match. If you make a lot of money, contribute enough so that your income doesn’t disqualify you from full Roth IRA contribution.
As much as you can afford. The first goal would be reach the max of your company’s match. Then, the annual limit ($19,500).
Depends on when you want to retire and current needs. But it's a pretty good investment given the automatic gains from not paying taxes now (and the tax break turning it's higher amount of principal that compounds for years to come). It's the only "low risk" investing I do outside of stuff around the house and I don't have to think about it
Have maxed allowable before, now cant because have kiddo on way and goals for house savings.
Pro
Always give 110%
Max it, and then do the mega backdoor roth ira.
What’s the difference between a trad IRA vs Roth IRA since when you fund either, isn’t it post-tax (Roth) dollars anyways? In other words, it’s not like it’s coming though your paycheck like a 401K, so where does the tax piece come in?
You should aim at investing at least 15% of your income. Put enough into the 401k to max it, and then put the remainder of the 15% you’re investing into an IRA and/or other brokerage account.
Is it a bad idea to invest more into brokerage account than 401k? I want to use it on a downpayment and other goals
Give at least whatever gets you the max matching contribution from your company. So if your company does a 50% match with a cap of 4%, you should do 8%.
Maxing 401k each year is easy for HCOL folks. A massive privilege overlooked when considering LCOL pay bands in context. We need to pay LCOL more.