#RetirementSavings #DownPaymentGoals #InvestingAdvice
Hey everyone! 👋 Balancing retirement savings and down payment goals can be tricky, especially when you’re just starting out in your career. I’m in a situation where I have a good amount saved up but haven’t started contributing to retirement accounts yet. Here are some things I’m considering – would love to hear your thoughts:
– How much should I prioritize maxing out my 401k/Roth IRA/HSA vs. saving for a down payment?
– Should I diversify my savings between a brokerage account/CDs and retirement accounts?
– Any tips for someone new to investing who wants to learn more about making the most of their money?
One possible solution I’m considering is to contribute enough to retirement accounts to take advantage of tax benefits, while also setting aside a portion of my savings specifically for a down payment in a brokerage account. This way, I can benefit from both long-term growth and have funds available for a shorter-term goal like buying a house. What do you think? Let’s discuss! 🏡💸
If you only need 3k per month I would take advantage of that for as long as possible.
1. Max 401k beyond just the match
2. You’re 24 you should shoot for a HDHP health plan and max your HSA, unless of course you have chronic issues or require weekly therapy
3. Max TIRA/ROTH IRA at 7k a year. Given your tax status it may be beneficial to do a TIRA, run the numbers
4. Put the rest into brokerage account and invest in a total market fund
5. Put 3-6 months worth of savings in HYSA invest the rest
6. Do everything automatic. As soon as paycheck hits your account send it to your brokerage and auto invest. I personally invest weekly as I have multiple income streams coming in
7. Since your house purchase is 5+ years out I would not put this in a CD, invest it in the market
Consider allocating 50% to retirement, 30% to down payment, and 20% to fun money.