Hi Everyone,Just started my first FT job out of undergrad. I have to figure out all my retirement account stuff (401k/IRA) and other things like an HSA account. I'm the first from my family to work in corporate America so I have no idea how to approach any of this. Does anyone have any advice or can point me in the direction of any helpful resources? For some context, I have no loans or debt to pay off. I have ~$60k in my bank account through internships, scholarships, and working retail jobs and my only expenses are rent + living in NYC. I say this because I am trying to maximize what I can put towards retirement and take maximum advantage of company matching and everything. Thanks in advance for any help!
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Here's a good resource: https://www.reddit.com/r/personalfinance/wiki/index , there's a detailed flowchart that's a good starting off point (https://i.imgur.com/lSoUQr2.png)
Max out your Roth IRA, get your 401(k) up to at least the match, and the rest just depends on your life goals (saving for grad school/marriage/house/kids/etc.).
This is good advice - hit the match at least in the 401k, while you can contribute to a ROTH IRA (grows tax free into the future).
HSA's are a good option if you are healthy, and don't use much healthcare, to save pre-tax - you can put about ~$3500 in there a year. Once you have more than $2k, you can invest the balance. Check the provider, some have better options than others but worth a look if you are serious on saving.
Aside from that - a lot of it depends on your preferences, investment options within the 401k, whether you want to manage your money and your views on taxes. I contributed to a ROTH 401k for awhile when I was lower tax bracket, now want the deduction so use pre-tax dollars and max it out.
+1, but not sure about the cash balance minimum. In mine I can invest the entire balance.
At what point does it become worth it to switch your contributions to a traditional 401k instead of a Roth $401k? Is there a particular annual income level?
max 401k, max Roth IRA (or backdoor), max HSA
put a little into savings and the rest into brokerage and crypto
Never leave 401k match on the table. You'll spend the HSA sometime so load it up. 401k beyond that? how are the investment options? mine stink so I load the backdoor roth IRA first. (it's mostly in funds I've built)
Investment options are decent but not great. my old firm let us buy company stock but my current firm does not. I chose to max 401k because we make more than enough to do so. Especially with the base salary increases
Just wanted to thank everyone that commented. As a first-gen student and the first in my family to have these kind of things with nobody to ask for help, this is extremely helpful and I cannot thank all you enough.
Being in a similar situation, it's made me want to volunteer to teach financial literacy classes.
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