Hello Blinders, I haven’t made any 401k investments yet. However my new company is offering me sign on bonus. Should I consider putting that as my first investment in #401k or is it wise to put that towards the down payment of my new house that Im planning to buy towards the end of this year?
The first thing you should do is max out your 401k match. One of the highest ROIs you can find
If your company provides a match (say 6%) then invest 6% of the bonus in 401k (and contribute that 6% every month from your paycheck) and save the remaining for downpayment of the house (provided you do not have a high interest debt like student loan or credit card interest)
You do not know how 401k works...
First of all, OP may not be eligible for Roth after tax 401k (depending on annual income), even yes, the annual max contribution is around 5k. Second, you don't need to pay tax again for after tax 401k contributions, only the gain part.
Max 401k and match whenever possible first. Tax-deferred, compound growth investing is your friend.