401K- Please help this clueless new Grad
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
I think you can still max it out?
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.
Atleast get the maximum match from company. If you can afford, contribute until the max allowed limit.
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 https://www.teamblind.com/article/Microsoft-401K-plan-How-do-Microsofties-use-it-Why-I-know-everyones-personal-needs-are-different-but-still-asking-JjAHgzmc
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Where is this from? No term life?
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.
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.
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.
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.
Max out your 401k until your company doesn’t match. It’s free money