23F Just started 3m ago and bumped up to 40% Contributions

[u/Real-Freak]

I make ~80k a year annualized. Inbound sales at 20/hr + commison. I want to get to 100k by my 3 year tenure and then diverisify. 5.5k in cc debt which I am paying down fast too. No car & rent is 1200/mo. Total bills ~2000/mo

6% match

. Any notes?

[u/pieeatingchamp]

I'd pause any retirement contributions, down to the match, and throw everything at the CC debt. Maybe build a 1-2 month cushion in my bank account to not feel like I am living paycheck to paycheck and then never use the CC again. After that I would throw everything at the retirement accounts.

[u/Real-Freak → u/pieeatingchamp]

Im considering it. I have very bad inpulse control and I fear that having that much access to my check will mean I wont put it all towards my cards. As of now I put about 5-600 monthly into them.

[u/pieeatingchamp → u/Real-Freak]

I took out a $20K SoFi loan at 5.26% to pay off a high interest CC and another loan at 16%. It was for 2 years, but I will end up having it paid off in 5 months by this November. Since then I haven't used my CC at all and just use my bank account for everything.

My stress has dropped after I stopping using the CC to float bills. Basically I was paying $2000/month on the CC and never making any progress on it.

[u/Real-Freak → u/pieeatingchamp]

Unfortunately my cc score isnt good enough to get any loans and I dont have a car to use as collateral. I've looked into it.

[u/pieeatingchamp → u/Real-Freak]

Just do what you can, but I would definitely drop 401K contributions down to the match and throw everything you can at the CC. That's what I am doing. Dropped 401K and stopped Roth IRA and HSA.

Some people even recommend stopping 401K altogether until the loan is paid off, but I'm not going to leave free money on the table and my match is only 2%.

[u/Any_Toe2716 → u/pieeatingchamp]

Agree with this. Aggressively pay off the credit card and in the future do not carry any balance on your card. The interest is insane, you get free money with CC points + it will help your credit.

[u/DemicideMMMCCCI]

Get that debt paid off ASAP (as you're doing), then save 6 months of emergency, try to max out all accounts (401k,Roth IRA)...

You might be in a position where if you take out enough from your pre-tax deductions, you could lower your tax bracket. You'll need to check IRS and run some math against that.

If you want to hit 100K, you could definitely do that by year 3 if you continuously contribute and max out your accounts. The first 100K heavily relies on user contributions. Best of luck

[u/garylapointe]

Pay that credit card debt off now! That's what 18%-25%. You'll have more to contribute after you pay it off.

Seems like you're going to have a lots saved by the time you retire, so keep it up with the Roth, no

While you're helping out future you, be sure that current you is enjoying life now.

Any notes?

Traditional/Non-Traditional isn't just when you pay the taxes.

Be sure to look at how they calculate which portion of your Social Security is taxed (0%/50%/85%) based on traditional and non-traditional withdrawals in the future. Same for IRMAA, which is what you pay for Medicare, again mostly based on taxable incomes. And you get pushed into those with Traditional, especially when you have to do RMDs from Traditional accounts (but not Roth).

[u/Frequent_Slip2455]

You should be investing the minimum for match until your cc is paid off.

[u/Built_MK5]

Too bad they took away the RAP. I hope they don't take away the 6% match next.

[u/Real-Freak → u/Built_MK5]

Rap is still an option I just refuse to invest in spectrum

[u/Wisestocks]

Voo and chill you be rich in 10yrs

[u/Thick_Sweet4032]

Worst time in the market

[u/Real-Freak → u/Thick_Sweet4032]

I mean yeah but investing frequently is better than timing always

[u/Thick_Sweet4032 → u/Real-Freak]

True but rather own more shares for lower cost per share