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sadmedstudent2022 OP t1_j28xxdo wrote

Reply to comment by MountainStoneMist in How to balance savings and investing (TSP vs Roth IRA) by sadmedstudent2022

wow i didnt realize I had until April to contribute toward 2022, thank you! Also, I realize how my question could have been written better. I guess I mean Do you think it is worth it to attempt to max out both?

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MountainStoneMist t1_j2902kk wrote

Yes, starting on January 1st, 2023 pay close attention to your Roth IRA contributions, you will be able to select which year you apply your contributions to.

It's definitely a worthy goal to max out both accounts only if you are on the correct step according to the money management tips of the prime directive:

https://www.reddit.com/r/personalfinance/wiki/commontopics/

I would go ahead only if you have paid off all high interest debt and have a fully funded emergency fund (lots of people skip this step but they end up regretting it because the minute they get into financial trouble they raid their investment accounts. Think of an emergency fund as insurance that helps protect your investment accounts).

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>as well as some digital assets (only a bit please don't judge).

I wont judge, but you can't stop me from giving you the side eye.

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sadmedstudent2022 OP t1_j29ed2g wrote

I'll give this a read later, thank you! I was specifically wondering about emergency savings as well especially given that I have a house to take care of now. Luckily, no high interest debts or credit card debt at all here. just about 2k in student loans (once biden's forgiveness goes through).

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haha I can respect a side eye :) its an asset class I personally believe in and want it to be a part of my portfolio

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lakehop t1_j29gyk2 wrote

You should definitely max them both, even if you need to cut other saving. Your income will be much higher in future and having tax free retirement savings in future will be a major boon.

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