[USER]

I’m 23 with a wife and 3 kids. I started a new job offshore making 100k a year. We are living frugal off of 1 income and have around 5k left over after bills.

My question is should I enroll in my employer 401k if the match is 25% up to 6%?

This seems very low to me wasn’t sure if I should just put money in a roth and the rest in a robinhood account investing in VOO or similar etfs.

Thanks in advance!

[Bassel]

Could be higher but it is free money. Always take advantage of at least the match, then follow whatever option you desire.

[Rosa]

Google order of operations for personal finances, but yes invest in 401k at least up to the match.

[Jean]

Don’t use Robinhood. Use Vanguard for your brokerage. Robinhood has lots of problems.

[Anna]

Do not put money into Robinhood. Full stop. Fidelity, schwab, or Vanguard.

I’d recommend Vanguard.

[David]

It’s kind of low buts it’s basically a guaranteed 25% immediate return. I would do the 6% in 401k, then go to IRA.

[Lauren]

Do the 6% to get the company match. Your takehome pay will go down about 5% because you will pay less in taxes, but your retirement contributions will equal 7.5%.

For whatever else you have left over make sure you are funding some retirement accouont for your wife. Also make sure you have really good life and disability insurance.

Relying on one income leaves the family vulnerable should something happen to your ability to earn income.

[CB]

Roth for you, and do 529 educational plan for the kids.
Do NOT use ROBInHood!! They charge too much.

Fidelity is free and easy to use.

Do the plan woth your employer too with the match.

[Vanessa]

people in the healthcare industry haven’t had any 401k match in a decade

[Zimmer]

Open up Roth Ira for both
And add to Roth 401 k if the have one add dollars for the dollar match
Budget

Emergency fund
No debts
Save cash for house

[Manny]

Robinhood is just fine. I was using vanguard and switched over to RH. They’re offering a match right now for ROTH IRA’s and the platform is way simpler and user friendly in my opinion.

I’ve been using RH for brokerage for years

[Jason]

Always take the company match. If you put in 6% then match 1.5% that is a 25% return plus the investment growth.

Then max out HSA if that is an option. HSA goes in tax free, investment growth is tax free and comes out tax free when used for medical expenses.

Triple advantage

[Scott]

Your 401k has something very similar to voo. It’s free money. That’s a 25% gain before your investments even starts growing..

for perspective the market had a crazy good year last year and made 25%.

That means you would have made 50%

[Elie]

Even if the match seems low, it’s still a 100% ROI which is pretty good by most standards, so it wouldn’t hurt.

If you plan on significantly increasing your income in the future, now might be a good time to check if your employer offers a ROTH 401k.

[Author]

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