Need help on making a decision about going all in (~60k) in retirement this year or just keep current retirement contribution rate and keep saving for a higher down payment. - Just got a new job that offers megabackdoor roth. - Currently set to max out pre-tax 401k (employer match is 10k). - Also, set to max out HSA. - Current 401k pre-tax balance : ~29k - Planning on getting either a 2Bd/2Ba condo or 3Br/2Ba house in San Diego around Q2 2023 but could be earlier or later depending on how market shifts for buyers. - Current cash savings : 130k and gaining 5.6k/per month with above retirement investment rates. - Current living expenses : ~$200/month (live at home and buy food + gas ) - Debt: 18k ( student loans ) - Target housing budget : ~600-750k, condos in desired area are ~600-650k for 2B/2B, cheapest houses ~750k 3br/2ba. - Extra rooms in either housing choice will be rented out. - If I start going all in on retirement for the rest of 2022, that will eat almost all my paycheck Blind tax: Age: 25 (2 YOE) TC: 138k base/ 25k/yr RSU/ 10% target bonus Edit: - Student loans are keeping credit score boosted as my oldest account so could drop from current FICO of 750 - Car is also getting pretty worn small chance could need a new one if something goes bad
Two rules - a) don’t owe money to no one b) rich people spend their money like poor people and invest like crazy. Poor people spend like rich people and don’t invest at all
With a student loan you're paying the lender their interest rate payments/ROI. I would pay debt off asap using any lump sum payments you receive (for instance I would use bonuses to pay off debts first and then save for the downpayment on that condo). 401k can wait
Get out of debt.