Submitted by [deleted] t3_z8pjl9 in personalfinance
F-Panda12345 t1_iydf7i0 wrote
401k's are mathematically superior net worth vehicles to houses.
However... You can't live in a 401k...
With that said, contributing say 5% (which will lower your take home income by around 5%) is unlikely to materially change your your house savings in a year. At that salary we are talking around $250/mo less (3k/yr less) to save toward the house, which isn't gonna love the needle really on your home purchase decision.
But if you take that pretax $4200 and put it in a 30 yr index fund and are able to return 7% post inflation, it'll become $34k at age 59...
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