Hi,
Does it make sense to max out my employer sponsored 401k and personal Roth Ira when I have a very low income. I am a 26M and make $45k/yr gross in an extremely high cost of living state (Hawaii), which may be a livable salary elsewhere is the country but is straight poverty here. I am able to live with my parents rent free, which means that I have no real expenses (which I am very thankful for!), so I have a high savings rate but in terms of whole dollars it is not that much. I am able to max out my retirement accounts every year, but should I? Is there a better way to be going about this? I have $10k sitting in a high yield savings account as an "emergency fund" should the need arise. Employer 401k has good funds to choose from with low expense ratios (vanguard) , I currently have it set up with 70% US large/mid-cap and 30% international stocks.
Is it really possible to retire on just the $25.5k/yr I am able to contribute to these retirement accounts? I do not feel like I have enough money between my retirement savings, trying to save enough to help my parents in their retirement, and save for other goals. What do others think?
Submitted November 29, 2020 at 06:59AM by Correct-Weekend-7133 https://ift.tt/3qcEIjR
