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Rave-Unicorn-Votive t1_ja8euqz wrote

Is it generally a good idea to use all available tax-advantaged vehicles for retirement savings? Yes.

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bulldg4life t1_ja8fef5 wrote

If you're looking to expand wealth over the long term, then investing in all tax advantaged retirement accounts is important.

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ace_deuceee t1_ja8jeku wrote

A few points to support investing on both. 401k's often have a company match (free money), Roth IRA's are very flexible and grow tax free, both are tax advantaged and good choices. It's good to have a mix of pretax and Roth money, that will usually give the most efficient tax savings in retirement. Depending on your current salary and desired lifestyle in retirement, usually maxing a Roth IRA isn't enough to retire comfortably.

With all that, the flowchart says to get the 401k match first, then max Roth IRA, then increase 401k to meet retirement contribution goal (HSA also gets mixed in there if you have access to one).

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MGSV1989 OP t1_ja8k4l9 wrote

My company matches at 6% and just opened an HSA. I have that match right now, so I guess the next logical step would be to max out a Roth IRA.

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Stock-Freedom t1_ja8z64o wrote

Yes. Follow the flowchart.

My generic advice:

https://i.imgur.com/lSoUQr2.png

Here is the flowchart from the r/personalfinance subreddit’s Prime Directive. If you follow that, you will be ahead of almost all of your peers.

Stop by the sidebar to see the Common Topics, which include basic money handling and investing.

You don’t need to talk to anyone or buy some random book to do this. You have all the tools right here.

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