Junior Bankers - Max out IRA, or Invest in non-IRA to save for condo down payment?
This seems like a dilemma -- we've always been told to max out our IRA contributions (especially if you have employer match), but if you put all of your savings in IRA account, then how do you save up for a down payment for a condo when you're in your mid-late 20s?
The max you can put is 25500 between 401k and Roth IRA. Between salary and bonus you should be saving more than that
should you do a 50 50 split between 401k and roth ira? if my max is 7% does that mean I can split it 3.5% for both or 7% each? Thanks.
IRA limit is $6000 and employees can contribute $19,500(employer match is separate) into a 401k so it won't be 50/50.
got it, so do you recommend maxing both?
If you can, then definitely. General advice is that contributing up to the match in the 401k is your first goal since that's basically 100% return on your money. Also, the question between a Roth and a traditional IRA depends on whether your tax rate is lower now(then Roth) or at retirement(then traditional). A Roth IRA will let you pull contributions out without penalty as well, just can't touch the gains.
Wow, that's an impressive saving rate for an analyst -- if you're grossing, say, 150,000 as a first year, after taxes, that's probably a take-home of 75 or 80,000 and to save more than a third of that seems ambitious. Great if you can do it, but ambitious.
not being in nyc helps a ton tbh
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