Maxing Roth 401k right out of school??
Just curious to see if realistically I can max my 401k out of school. It seems like most of what I’d save would go to it and that would leave me with very little savings.
My budget affords me ~$2k post all my expenses each month. Company matches 3% so maxing out still seems steep. Say I save 24k out of college my first year is literally only have $2k in savings. My base is 110 for the year so I’m not really factoring in a bonus yet
Am I doing the math right?? For context I’m in NYC and pay $2k/month on rent
I would highly recommend and it is possible (your math adds up fine). Even if you can't save any/much more right now after that. If you start maxing out your Roth now and do it every year until retirement, you will be a multi millionaire with that alone (safety net if you have expensive vices too). You could save up a 6~ month safety net before doing this also if you are concerned about macro/job environment. Congratulations on the job right out of school, you're doing great!
Thanks for the advice!
Bump
if you're going to bump your own post at least have the courtesy to make yourself anonymous lol
I’d recommend maxing it out with your bonus. It’s super easy to funnel it in at bonus time. Sure you could save that amount off your base but New York is expensive. From my experience, worrying about money isn’t fun when you’re working really hard. Enjoy you’re time off and don’t sit in your apartment bc you’re worried about saving money. The longer you stay in finance whatever amount you save from your analyst years will be negligible (outside of maxing Roth which I am fully onboard with and have done it with both bonuses)
Facts. Spend your base and bank the bonus. Enjoy life young, you never know when you’ll go.
This is only a good idea if your company does an end of the year true up on the match. Otherwise you may be leaving money on the table.
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