- 5 years ago
- Wedding: October 2011
Hi Bees – Now that we have our wedding behind us and are in our forever home, I am looking into savings/investing/retirement.
We still own my first home which is now being rented. We have about 13k in liquid savings and are hoping to get that up to 20k before we start hitting hard in other investment areas. My question is about where to point the cash once we have the 20k. DH’s investment man said that we should both be maxing out our 401k contributions to the IRS limit. I think it’s about 17.5k EACH!
I was pretty surprised at this number. I hear others talking about IRA’s, Roths, Mutual Funds, etc and I am wondering if you have those other types of investment accounts, is your 401k contribution already maxed? If your 401k isn’t maxed, why are you choosing to divert funds to other investments before maxing your 401k? I’ve done some research and it seems to be pretty common advice to max the 401k. I’m hoping to hear from some real life folks about your strategy.