Help! I have zero investing smarts and I've maxed out my "easy answers"
I have my full employer match in my 401k, but I don't know where to put saving next. My employer offers a Roth option that I haven't taken advantage of and know nothing about. Should I do that or open my own IRA elsewhere? Traditional or Roth. How do I decide what's next? Do I need to worry about contribution limits?
Stats per Year:
Gross Income: 110,000
Personal Contribution to 401k: 6000
Employer Match: 6000
The employer plan is pretty nice. Mostly Vanguard Indexes.
For now, I'm planning on contributing another 6000/yr until I can purchase a house. The max I could possibly contribute at that point would be 12000/yr. Should that influence my decision?
If there is a website/book/blog/podcast/man-shouting-from-the-rooftops that would help me understanding this I'd love to hear about that too. I'm
With a gross income of $110k, you should be able to put the full amount in an IRA with no cutoff. The partial phaseout starts at $117k modified gross.
So you can do $18k in your 401(k) and $5500 in your IRA, unless you are 50 or older, in which case you can do more.
Your post says you are planning to contribute "another 6000/yr until I can purchase a house. The max I could possibly contribute at that point would be 12000/yr." I am not really sure what this means, but if you cannot save more than $1000 monthly ($12k max), then just put it all in the 401(k). That would be $12,000 you, reducing your tax liability, and $6000 employer.
I would perhaps reconsider buying a house, however, if you think that is going to put you into a cash crunch as a single person with no dependents and a very healthy six figure income.
I would take a careful look at reducing expenses and increasing your savings rate.