Hi,
I just turned 23 and am currently deferring law school while I work to grow money. I would like to know what the appropriate investment strategy for my situation is.
I net ~$2,800/month. I currently put $1800/month in Vanguard Total Stock Index, $250/m in company 401k to max the 100% yearly match up to $3000, and used my tax refund to max my 2013 Roth IRA. All told I currently have $21,500 in investments and a 25k net worth. I start law school in 2015. By then I'll own ~$30k (at today's stock price) worth of vested company equity too. I live in the most expensive city in America, so rent disallows me from investing more :(.
My question is, should I stop contributing to my taxable account to take full advantage of my company's 401k matching policy? My company matches 50% on anything I contribute over $6000. So, if I max it out at $17500, they add $8250, which is over $5k more than they contribute in my current strategy. The reason I've hesitated to max it so far is because I might want to use the money I'm saving to help service my future educational debt and am concerned about having it tied up in my 401k.
I'd like to be FI by 40 or younger. I currently have a girlfriend who I have every intention of marrying who will make over 100k/yr within the next 4 years FWIW.
Thanks!
P.S. I know law school can be a risky venture but it is the only way to achieve my professional goal of becoming a law prof to combine tenure with FI. I've minimized my risk by accepting an offer from a top school (think Harvard, Yale, Stanford), building work experience first, and saving as much as possible. I'm also applying for fellowships to help cover tuition. In other words, I'm not looking for reasons why I shouldn't attend law school.