I just finished the course Build Wealth by Investing in Index Funds.
I have 15k from 2021- employer matched 3%, I contributed 18% for 2021.
The mutual fund is T Rowe Price Retirement 2055- exp ratio 0.27%
I now decreased my contribution to 6%- employer will match up to 3% only.
I think I made the right decision to decrease my contribution but I am unsure?
Why did you decrease your contributions?
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Take a look here…
Depending on your savings rate, the playbook would be:
- Invest first 3% in 403b
- The next $6k (per year) in Roth IRA (that is the max)
- Then revisit 403b up to the max
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You should keep donating the maximum if possible
I am only doing the amount to get to most match from my employer. I contribute 6% they match 3%.
Can you explain ‘revisit 403b up to the max’ ?
My concern is contributing more than the max match from my employer, since the target date index fund exp ration is 0.27%.
My plan is 403b 6%/3%, 6K for Roth, and a low index fund account too.
Since the 403b is tax deferred they are suggesting after the Roth that you contribute the max amount allowed to be contribute (I believe its the same as a 401k amount but I suggest verifying).
As there advantages to a taxable brokeage account but also want to look at maxing out your tax deferred accounts as your income allows.
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