27 year old and I landed a new job. Single/No kids/No debt. Just opened a Roth IRA, limit of $5,500/yr and maxed it with my first contribution. Will join the 401k (4% employer match) in October, the next open enrollment. My job pays 47k before taxes. After health insurance, dental, FSA contribution, and income tax, my take home is about 34k. I rent a room for about $300/mo, utilities included (living below my means). I do want to buy a home at some point, likely one of those tiny homes, but I can wait a few years. I've saved about 45k in savings accounts and CDs from previous jobs but never put anything into retirement accounts until now. I plan to max out the Roth IRA each year using my savings which have already been taxed. I feel like I need to catch up on retirement but I'm worried about contribution limits and not reaching my retirement goals.
Should I: A) Put 50% of my income into the 401k in an attempt to max it out for a few years, living largely off my low-return savings during that time, or B) Contribute only between 4 - 10% to 401k and keep my savings in low-risk places like CDs and Money Market Savings accounts? C) Something else?
Any thoughts are appreciated, this sub is an awesome community. Thanks!
Submitted August 21, 2017 at 10:21PM by blicktunduroo http://ift.tt/2xmyd1T
