401K- Please help this clueless new Grad

Microsoft Stayfit
Dec 16, 2018 16 Comments

I am a new Grad (working out of NC) and I am clueless how much to put in my 401k. Company matches 50%

My current base salary is $82,500
Rent- $1,500
Car- $400
Student Loan- $286
Electricity- $75

Please help out with good advice


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TOP 16 Comments
  • Max out your 401k until your company doesn’t match. It’s free money
    Dec 16, 2018 0
  • Google KissMyPiss
    Max out your match. Then max out the Roth. If you can make it happen (not all companies allow for this), maximize the backdoor Roth. Then max out the rest of your 401k. The Roth is a tax favorable setup and you can withdraw those contributions whenever you want, in case of hardship, with no tax consequences (confirm your situation with a CPA).

    Otherwise read Bogleheads if you want to retire before you're dead.
    Dec 16, 2018 0
  • Google Riker
    Here's the best advice you'll get - get an L5/L6 mentor ASAP, and start prepping for a job switch in a year or two. Build your profile, pick up a few tech stacks and get proficient at them, start leetcoding regularly to brush up your skills, and start interviewing within a year. You'll double your income. That's a better outcome regardless of how much you micro optimize your Roth IRA backdoor, or after tax contributions.
    Dec 16, 2018 0
  • Apple vAAA81
    Just follow this.
    Dec 16, 2018 3
  • Microsoft 2019
    The advise in this thread sucks. Don't use your 401k plan. Money won' exist in 40 years and sophisticated robots will do all the labor rendering everything free. Don't save any money for retirement, its all a scam. Youre making bankers rich and theyll just delete your account.
    Dec 17, 2018 1
    • Google ceng
      Dec 17, 2018
  • Red Hat lolz🙈
    Bro... Max up to company matching and get rid of that fucking debt asap. Once it's gone, u can max out 401k and shit.
    Dec 17, 2018 0
  • Cisco B-Intern
    For a young guy, max out company match, you also need money for fun. Invest in 5 or 4 * high risk funds since you have time.
    Dec 16, 2018 0
  • Financial Engines frugalguy
    Atleast get the maximum match from company. If you can afford, contribute until the max allowed limit.
    Dec 16, 2018 0
  • Amazon Dkdnejskdn
    I think you can still max it out?
    Dec 16, 2018 0
  • New OOBDC
    At least enough to get the max employer match. Don't screw around here. I'm sure your seen the info about the hypotherical worker who invests x amount from age 25-35, then invests nothing going forward. Then another worker who invests the same amount starting at age 35 to age 65. Person B has less money at 65 than person A. It's called compounding.
    Jan 8 0
  • Amazon Chad🕶
    At least as much as your company will match. But then put in as much more as you can afford and are willing to do, up to the yearly limit. When you retire, you'll never wish you hadn't put in more money, but you may wish you had put in more.
    Dec 16, 2018 0
  • Recommendation:
    - Connect with HR. Get advice on your future plans from Microsoft’s finance advisors
    - Review your total cost of living, fix spend (+phone bill, food, clothing...) and flexible spend (travel, partying)
    - I think* Microsoft has 50% match at a maximum of 6% percent of a salary. Ideally, invest until they don’t match
    - Research
    - Read recent lost on the topic
    Dec 16, 2018 0