No 401k match, how much to contribute?
Incoming analyst at an EB with no 401k match offered. What do others in similar situations contribute? Should I just do the typical 4-6%
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Max it out, unless you’ve got some high interest rate debt to tackle.
That would come out to about 21% assuming max contribution of 19,500 / 95,000 base. Do people really contribute that much? I graduated debt free fortunately so I think it would be possible.
Yeah, might be a little tough in your first (half) year, but that’s what I did. You want your money working for you ASAP. Remember also that it only reduces your take home pay by ~half the contributed amount (since you’d be paying taxes on it otherwise). Very doable.
Yes people do that. Yes, it's aggressive and at some moments in your budget it won't be easy but in the future, once that money grows a bit and let's you make some financial moves, it will be all be worth it and you'll smile upon your decision to do that.
This is the right answer once you've built up an emergency fund. You're saving 20% of your salary before a dime even hits your checking account.
I'd also look into maxing roth IRA and HSA once you're able to. Take advantage of these tax-advantaged accounts now and you'll thank yourself later.
Haven’t created an HSA but do have a Roth and 401k. Can you speak to why an HSA for the youngins.
I'm also mildly young and don't know the ins and outs of an HSA but the one I have through Optum, you are able to invest your contributions once you have over $2k in your account. Can choose your investment strategy and all that but overall it's a great play and it's pre-tax. I just contribute $100 each paycheck and my employer will match every three months so it adds up after awhile and eventually you will have a decently sized portfolio all from HSA dollars.
This is assuming you are a healthy individual who doesn't need to actually use your HSA dollars for something health-related.
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If you plan on buying a house in the next 5-7 years, I’d wait to max out your 401k until you’ve saved enough for a down payment. Build up an emergency fund and then max out Roth ira and put rest into a brokerage account.
This isn't a terrible idea but there's other ways. You can always max out your 401k and then borrow from it later when you're ready for the house. Yes, you could put that money in a brokerage account, but being able to save and then borrow and then pay with money that hasn't been taxed yet seems like a better idea to me.
Good idea. Only problem is the 5 year amortization - also possibility of job loss and having to repay loan within 60 days or be hit with taxes + penalty.
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