Wednesday, November 28, 2012

How much should I put in my 401k? ? Roth IRA News

I have a debate going with my boyfriend:
How much should I put in my 401k?
The minimum to get my employer to match my investment or the maximum allowed?

I?m 24 years old, I dont really have major ?bills? (cell phone, car insurance, and $200 rent) and I live pretty well off of what I make ($25,000 not alot but once again I dont have a high cost of living and I just graduated college a few months ago)

1. My boyfriend says I should only put in what my employer will match and invest the rest on my own (he is 28 years old and has $33,000 in his 401k)

2. My parents say I should put the maximum in allowed, because it is pre tax and I should start a habit of putting it away now so that way I will never miss that income (I wont get used to money and then decide to start investing and have to cut back in other areas) (my dad has over a million in one 401k account)

Any advice?

Source: http://rothira.solve-up.com/roth-ira/how-much-should-i-put-in-my-401k/

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