ETA- How much should I put in 401k? Should I go 401k roth or regular?

Hope so, I certainly do.

What do you do?


Good to have a one traditional set up and one roth? Or should I go Roth on both?

I doubt I'll ever make too much to contribute to a Roth.

It seems nice to lower our taxable income even though the rate now will be less than down the road.

Also, my wife's work will start matching 5% after 1 year.

I was thinking do 10%? She makes about 40 a year. That would be 6k a year and hopefully max out the roth.

1) contribute up to the max that your company matches. You will not find a better ROI that the initial match (have your wife do the same to hers as well)

2) depending on your age, and what others say here, i would then try to max the yearly contribution to your ROTH

3) if you are still young, and dont have the income to save more, then each time you get a raise, then up a portion of that raise into your 401k. the more you can put in now the better

quote:

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then each time you get a raise, then up a portion of that raise into your 401k

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I got a big bump a year after I started my job. Since then, it has been the standard COLA and a couple percent here and there. My point being, I have not technically gotten a raise since my first year because I up my 401k contribution to offset the raise.

If you dont need the money from the raise, I think it is a sound strategy.

I don't think my company contributes to our 401k until you've worked like 6 years or so

So what I'm doing right now is investing 10% every paycheck into a Roth account and 5% into a traditional

My thought process is that I'll be paying higher taxes in the future, so I want to shelter as much of that money as I can by paying taxes on it in the present ( while I'm in a lower tax bracket).

Honestly, I don't really think it'll make too much of a difference. The real key is to save often and save as much as you can afford to.