I mostly hear people say max out your 401k before putting money into a Roth. I personally invest more in my 401k, but do put some in my Roth just to have a balance.
Your job likely matches 35% up to a certain percentage of your paycheck, so you'll need to find out what that is through your employer. For example it might be 35% of the first 6% that you put in. In this example on a 100k salary you would put in 6k and they would put in 2.1k. Then any extra you put in doesn't get matched by them.
I would recommend putting in the minimum required to get the full match of your employer (if you can afford to) then focus the rest of your money on paying off your debt.
REKTX is a target date retirement fund. Basically it's more aggressive early on and closer to your retirement date it will get more conservative to make sure you don't lose a lot of money right before you need it. My 401k has a similar target date retirement fund and I asked a financial advisor the same question. Basically you can invest it in something else like the S&P 500 if you really want, but that will need to be done manually by you and it's just more effort. My personal recommendation would be to leave the 401k on what it is and put your Roth investments in S&P 500 if you want stock in that.
PolarisB t1_j6oe7qn wrote
Reply to 401k Noob Question - by BlueDoe1775
I mostly hear people say max out your 401k before putting money into a Roth. I personally invest more in my 401k, but do put some in my Roth just to have a balance.
Your job likely matches 35% up to a certain percentage of your paycheck, so you'll need to find out what that is through your employer. For example it might be 35% of the first 6% that you put in. In this example on a 100k salary you would put in 6k and they would put in 2.1k. Then any extra you put in doesn't get matched by them.
I would recommend putting in the minimum required to get the full match of your employer (if you can afford to) then focus the rest of your money on paying off your debt.
REKTX is a target date retirement fund. Basically it's more aggressive early on and closer to your retirement date it will get more conservative to make sure you don't lose a lot of money right before you need it. My 401k has a similar target date retirement fund and I asked a financial advisor the same question. Basically you can invest it in something else like the S&P 500 if you really want, but that will need to be done manually by you and it's just more effort. My personal recommendation would be to leave the 401k on what it is and put your Roth investments in S&P 500 if you want stock in that.