CelticsWin7 t1_j28tt3u wrote on December 30, 2022 at 2:07 PM

Contribute up to employer 401k company match
Max out Roth IRA
Max out HSA
Max out 401k

Make sure to have a 3-6 month emergency fund as well.

wolf8sheep t1_j29728t wrote on December 30, 2022 at 3:44 PM

Also look into if your employer offers any after tax contributions with in service distributions to use the mega back door roth to go over cap as well as making use of the new 529 to roth conversion for the tail end of a 20 year plan to fund your roth with up to 35k.

MalibK t1_j2bld53 wrote on December 31, 2022 at 1:16 AM

I have a question? Why should I invest/max into HSA. I am 26 but really don’t see the benefit to it. Is there something I’m missing.

kikk89 t1_j2c1vx7 wrote on December 31, 2022 at 3:22 AM

HSAs are a trifecta super power account. Contributions are not subjected to tax. You can invest and grow tax free, and if you spend money on qualified expenses, it comes out tax free. The money rolls over and grows each year, unlike an FSA.

In retirement, if you happen to use the money for something other than medical expenses, you just have to pay taxes. With the way things cost today, I cannot imagine I will have a problem spending this appropriately in retirement.

CelticsWin7 t1_j2c33hc wrote on December 31, 2022 at 3:32 AM

It's triple tax advantaged. Also there are age no restrictions or penalties on an HSA when you can use the funds on healthcare

The average retired married couple retiring at 65 spends $315,000 in healthcare costs over the course of their retirement according to Fidelity. Everyone will have healthcare costs as they get older. Healthcare costs are only going to increase as time goes on.

I just turned 31, so I know how you feel. Your young, healthy, and feel invincible. I know it doesn't seem important since you have your entire life ahead of you. But nobody lives forever. Our bodies break down, we get sick, we get diseases, we fall off ladders, we fall down the stairs, we get in car crashes, etc.