Hello,
I just finished school and am new to the working/investing world, so I'm looking for some advice. My current situation allows me to comfortably save about $35,000 - $40,000 per year. I'm trying to figure out how to invest this income that will mathematically allow for the greatest return over the long run. So far, I have identified these investments in order of priority. I will be investing in index funds when possible.
* 401k , $18,000 : Maxing out my 401k will take advantage of a 5% company match, defer taxes until retirement, and allows for tax free growth.
* Roth IRA, $5,500: This money will grow tax free (my filing status and income level will not allow for traditional IRA tax deductions).
* Non-retirement investments, $11,500 - $16,500: After investing in retirement accounts that get employer matching, tax deductions, and tax free growth, I will invest in index funds.
Does this look like a decent plan? Any suggestions are welcome.