Current Events > 401k up to match > IRA > HSA > 401k > standard investment

(+) Yeah! (+)

Easy way to invest for your future- put your money in these following accounts in this priority:

• 401k up to company match
• Roth IRA up to limit ($6000)
• HSA up to limit ($3650), if enrolled in an high deductible health plan
• 401k up to limit ($19,500)
• Standard brokerage account

Reasons:

• 401k up to match because thats literally free money.
• Roth IRA because you have more flexibility (you can choose your own broker, and you can take out your contributions at any time for any reason with no tax implications; traditional IRAs are not afforded the tax freedom).
• HSA because its also more flexible to take money out in an emergency, and you can invest any money after a set cash amount (depends on your broker).
• 401k beyond company match because its tax advantaged.
• Standard brokerage account last, because it has the most taxes.

Follow this, and pick mutual/index funds, and youll be set for retirement easily.

Agreed, most people can't move past the IRA limits though.

I would only point out that the decision to go Roth v. traditional IRA is something people should consider. Both can be great tools but for some people going traditional may make more sense.

whitelytning posted...

I would only point out that the decision to go Roth v. traditional IRA is something people should consider. Both can be great tools but for some people going traditional may make more sense.

I think a Roth IRA is a no brainer; agreed on Roth or traditional 401k.

Every dollar I put into my HSA has been wasted. Any tax savings or earnings were counteracted by fees.

But I don't make enough money to invest.

I simply married the daughter of two doctors.

ChocoboMogALT posted...

Every dollar I put into my HSA has been wasted. Any tax savings or earnings were counteracted by fees.

You need a better hsa custodian