how much to put in 401k?
I plan on opening a 401k at work when the store I work at gets ready for the annual benefits enrollment. New benefits kick in starting first pay period of next year. I’m just not sure what % I should put in. I’ll be 30 in October. I’m single and have no kids. I rent an apartment but want to be a homeowner someday. I don’t have a lot of debt, just a credit card, I’m paying for my braces through Care Credit (it’s like a credit card company for medical and dental expenses), and have a student loan on deferment due to being in school again. I can put up to 50% of my income in but i know I can’t afford to put in THAT much. Problem is I don’t know how much my company will match because, according to the benefits’ website “The contribution is a percentage of your annual eligible pay and can vary from year to year.” I also want to open a Roth IRA with my bank as well.
You’re getting started, that’s the important thing. The other answerer gave good advice. Put in at the very least what the company will match, and then put the rest in the Roth. If you are not maxing either out, increase contributions to each a little every year, or at least everytime you get a raise. Good thing about the Roth is you can get at your contributions if you need to for the downpayment on that house you want. Get the house as soon as you can possibly afford it.
