Hello wise beings of MT, I just recently graduated with my masters degree and started working. I currently have my contributions set to 4%, split between the 401k and RothIRA. I plan to increase those as I get debt paid off (Student loans, car note, etc.) and an emergency fund set up.

I mainly have two questions, the first being if splitting between the 401k and Roth is even worthwhile, the second being whether I should stick with the blended target fund they start you at, or change to a more stock heavy portfolio since I'm younger (24 in a month).

In addition, I'm always open to hear any other financial advice. Thanks guys!

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Posted by GoldenD

Houston

Member since Jan 2015

933 posts

Posted on 1/16/16 at 3:36 pm to TigerinOkieHell

Does your employer offer any sort of 401k match? If they do, then be sure to take advantage of that before sending money to the IRA account.

What rates are your student and car loans?

The blended target fund is generally pretty stock heavy for younger people, just make sure that whatever fund you're putting in has a low expense ratio.

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Posted by seawolf06

Member since Oct 2007

8159 posts

Posted on 1/16/16 at 3:47 pm to TigerinOkieHell

As he said, go for what has the lower expense ratio. You should be 100% stocks (in mutual funds) for the first ten years at least.

Traditional advice has been to contribute to 401k to max the match, then max the Roth IRA, then go back and max the 401k. That way you are diversified between pre-tax and post-tax vehicles.

This post was edited on 1/16/16 at 3:48 pm

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Posted by TigerinOkieHell

Oklahoma City

Member since Oct 2010

2680 posts

Posted on 1/16/16 at 9:28 pm to GoldenD

quote:
Does your employer offer any sort of 401k match? If they do, then be sure to take advantage of that before sending money to the IRA account.

What rates are your student and car loans?

They do not, they have a profit sharing plan that doesn't kick in until you have worked there for a couple of years.

My car loan is at 2.5% and my loans average about 5-6%.

Thanks guys