401k Contribution

MongoDB / Eng
MongoEngr

Go to company page MongoDB Eng

PRE
Amazon
 MongoEngr
Aug 16, 2021 39 Comments

Since I was working remote and not paying rent I was able to save quite a good amount of money. However now I've moved and rent is kicking in again. My company doesn't do any 401k matching and I used to contribute enough to meet the federal max.

Should I lower it? Rent, taxes, 401k contribution, ESPP (maxed out), and HSA (maxed out) take out >50% of gross pay.

TC 240k

#investments #personalfinance

39

comments

Want to comment? LOG IN or SIGN UP
  1. TOP
  2. RECENT
  3. OLD
 TOP 39 Comments
  • IBM
    EngSau

    Go to company page IBM

    EngSau
    At 160k base you should be maxing your 401k, Roth, HSA without breaking a sweat
    Aug 16, 2021 9
    • MongoDB / Eng
      MongoEngr

      Go to company page MongoDB Eng

      PRE
      Amazon
       MongoEngr
      OP
      I see. On the flip side, isn't investing 19.5k / year into 401k better than 5.5k / year into Roth?

      But I do see the massive tax advantage.
      Aug 16, 2021
    • IBM
      EngSau

      Go to company page IBM

      EngSau
      Itโ€™s not an either/or. Say you have $10k to spare, you put 4k in 401k and 6k in roth. The two investment vehicles arenโ€™t mutually exclusive
      Aug 16, 2021
  • Cummins / Eng
    mechie

    Go to company page Cummins Eng

     mechie
    Try to max out HSA as well
    Aug 16, 2021 9
    • MongoDB / Eng
      MongoEngr

      Go to company page MongoDB Eng

      PRE
      Amazon
       MongoEngr
      OP
      Isn't mega backdoor dependent on company? I'm not too familiar with the process
      Aug 17, 2021
    • Intuit
      miraepochu

      Go to company page Intuit

      miraepochu
      Increasingly more companies and their 401 k administrators are supporting this .. check to see if u can do after tax contribution and do a in service conversion to Roth IRA or Roth 401k
      Aug 17, 2021
  • Apple
    confus๐Ÿ˜ณ

    Go to company page Apple

    confus๐Ÿ˜ณ
    You should seek financial advisor. Asking how to manage your finance on blind is the last thing you should be doing. There are ton of free financial advisors available who will give you free advise including your bank.

    Dont take this as a financial advise, it all depends on your situation. In my case, I always Max out on 401k and manage your 401k portfolio based on how economy is doing. Stocks vs bonds.

    By maxing 401k, every year I started forced saving and added up so quickly I didnt realize it how valuable it was.
    Aug 16, 2021 1
    • MongoDB / Eng
      MongoEngr

      Go to company page MongoDB Eng

      PRE
      Amazon
       MongoEngr
      OP
      Thanks. Yeah maybe I phrased it wrong but I'm not trying to get advice. Just wanted to see what other people are doing.
      Aug 16, 2021
  • New
    Altguy

    New

    Altguy
    maximize your 401k ($19500) , ESPP(max limit is $25k,little over 10% of your TC) -wondering where your 30% goes to ?
    Aug 16, 2021 5
    • New
      Altguy

      New

      Altguy
      Gotcha,itโ€™s not recommended to put all your investment in ESPP unless you use ESPP is just for quick trade . You may distribute your investment in other areas whenever needed thatโ€™s way you have surplus cash on your hand.
      Aug 16, 2021
    • MongoDB / Eng
      MongoEngr

      Go to company page MongoDB Eng

      PRE
      Amazon
       MongoEngr
      OP
      ESPP is basically discounted free money. Why would you not max that?
      Aug 16, 2021
  • PTC
    itpeople

    Go to company page PTC

    itpeople
    Those are fine investments. My base was $124k and I took home $3200 after all deductions. So, yeah. Itโ€™s totally normal. When you are still in the lower tax brackets, be sure to put your 401k in Roth, to take advantage of tax free growth.
    Aug 16, 2021 2
    • MongoDB / Eng
      MongoEngr

      Go to company page MongoDB Eng

      PRE
      Amazon
       MongoEngr
      OP
      Thanks. And sorry I didn't understand your last part. What did you mean to "put 401k in Roth"? I learned a lotta this investing stuff by just reading online so I'm not too familiar with the ins and outs
      Aug 16, 2021
    • PTC
      itpeople

      Go to company page PTC

      itpeople
      Itโ€™s just Roth. Rather than the traditional 401k. And you kinda have to max it. I reached 50k in two years (employee match 3k + max Roth and lucky market returns) and it felt great! You will feel lot better when you have like 100k or so there and know that when you take them out later, they are all tax free. My wife and I are well on our way to becoming millionaires and I donโ€™t want to get stuck paying shit ton of tax money on my retirements. (Lot of people are multi millionaires) looks like you might be too
      Aug 16, 2021