re: Just got a new job making nearly 50k.

I remember the feeling like it was yesterday. Broke in college --> 32k salary and then a few years later getting a 50k salary. The advice thus far has been great. Max Roth, 401k to match, set aside for emergencies and short/long term goals. Don't forget to live a little!

Congrats!

BTW - you will quickly adjust to your new income, don't let your "lifestyle inflation" exceed your income inflation. If you can bank half of every raise you get from here on out you will be in good shape. Keep your fixed expenses low and don't live beyond your means

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While this is true, I would first check to see if the retirement plan through your employer offers a Roth401k. A Roth401k (after-tax) has the same tax advantages as a Roth IRA and there are no income limitations with a Roth401k, also the contribution limit is 18k annually with a Roth401k. With a Roth IRA it is only 5500 annually. However, if you do not have the Roth401k option through your retirement plan, then your best bet is to put in the % amount your company will match in a traditional 401k (pre-tax) and then open up a Roth IRA ETA: Contribute to ROTH401k first (up to match + contribute whatever you can afford after that). If not available, THEN Trad. 401k to match amount and open Roth IRA, goal should be to max out roth every year asap Just felt the need to emphasize this because this is what you should do.

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While some of this is true, it does not tell the whole story. In MOST cases a company's 401k (Roth or Trad.) fees are higher and investment options are more limited than an IRA (Roth or Trad.). Roth IRA's also allow you access to ALL contributions you make as long as it has been in for 5 years so it is considered a more flexible vehicle than a 401k. Although it is not recommended to distribute the contributions, you still have access to them if necessary for no penalty or taxes.

All this being said, the proper order for investing is to contribute up to your company's 401k match whether it be traditional or roth (You're young so more than likely roth), THEN open a ROTH IRA (I use Vanguard). If you max out the Roth IRA then you have the option of contributing to an HSA (if available), going back and contributing more to your 401k, or other investment vehicles. Just wanted to get that detail straight.