So if I am reading it right, contribute the max amount to the 401k ( 19,500 or roughly 36-37% of my gross yearly pay) and then look into the other options afterwards....is this correct?
The link I posted does not say that.
Usually it goes:
Emergency fund
High interest debt
401k up to match
HSA max if eligible
IRA max
401k max
Low interest debt
529 if desired
Taxable brokerage
Wait! What? Where do Roths fit into that list? That's one I'd definitely not want to miss out on.
I know you are familiar with the link steeze provided, but here it is again. Roth parts bolded.
WHAT
0. Establish an emergency fund to your satisfaction
1. Contribute to your 401k up to any company match
2. Pay off any debts with interest rates ~5% or more above the current 10-year Treasury note yield.
3. Max Health Savings Account (HSA) if eligible.
4. Max Traditional IRA or
Roth (or backdoor Roth) based on income level 5. Max 401k (if
- 401k fees are lower than available in an IRA, or
- you need the 401k deduction to be eligible for (and desire) a tIRA deduction, or
-
you earn too much for an IRA deduction and prefer traditional to Roth, then
swap #4 and #5)
6.
Fund a mega backdoor Roth if applicable. 7. Pay off any debts with interest rates ~3% or more above the current 10-year Treasury note yield.
8. Invest in a taxable account and/or fund a 529 with any extra.