kjerlil12 t1_j28rv99 wrote on December 30, 2022 at 1:51 PM

I would put more in your 401k or open a Roth IRA. The 37k is probably enough or maybe too much for an emergency account and so the $1000 after tax per month could be put in other areas. The PF wiki could be helpful!

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Either_Awareness8969 OP t1_j28sd30 wrote on December 30, 2022 at 1:55 PM

Makes sense, I have about 13k of that 37k invested in index funds / ETFs. I was thinking of bumping contributions up to ~18% ish for the 401k. I want to retire before 50 - does that impact how I should think about 401k / IRA planning?

kjerlil12 t1_j28tudc wrote on December 30, 2022 at 2:07 PM

If it's in your budget, then I would try to hit the maximums for the 401k and IRA. You can invest in index funds within an IRA, although the 401k options may be more limited. I would say using tax advantaged accounts is even more critical if you're trying to retire early, and it's great that you're starting early to maximize the time spent in market. You might also check out r/FIRE for more early retirement planning.