What’s the best thing to do with a 401k at 27 years of age? Literature out there can be so confusing sometimes.

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Bottom line - the best thing you can do is put money in and leave it alone.

More specifically, make sure you are contributing at least whatever rate your company matches (if they do) - so if it's 50% of deferrals up to 6% of compensation, make sure you're doing 6%.

Pretax or Roth is tough. The common wisdom is to do pretax if you'll be paying less in taxes at retirement than you are now, and Roth if not. Not knowing what changes will be made to the tax code in the meantime, I opt for pretax and will look for an opportunity to convert to Roth if possible and advantageous at the time.

Note: Roth =|= after-tax. These are two separate contribution types and are treated differently, but they are frequently confused with each other.

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Cash out

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As far as funds in that account, I do a 3 fund mix of:

Small Cap Growth ETF
Large Cap ETF
International ETF

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Match with employer, then add Roth 401k, then back to 401k. $20,500 is the total max for both.

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