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
Student Loan- $286
Please help out with good advice
- Google KissMyPissMax 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.
- Google RikerHere'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.
- Microsoft 2019The 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.
- New OOBDCAt 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.
- SAP MeMeMe🤖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
- Read recent lost on the topic