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(US) I go by the old standard, in order: * As much into your 401k as your employer will match (if applicable). * Maximum federal allowance into IRA or Roth IR
by mathgeek 12y ago
(US) I go by the old standard, in order:
* As much into your 401k as your employer will match (if applicable).
* Maximum federal allowance into IRA or Roth IRA (only the latter if you believe your retirement years tax rate will be higher than your current one). I go with the latter currently as having young kids means my tax rate is insanely low.
* Max out 401k.
* Tax-advantaged college savings for my kids (obviously a personal choice).
* Vanguard funds with low fees that track indices.
My reasoning is that I can spend a minimal amount of mental time thinking about my savings, and thus spend more time with my wife/kids and be more productive.