alt Hacker News> Max out our 401ks
If there's any 20-somethings here that make 6 figures, listen carefully:
1. Max out your 401k, and invest all of it in a target date retirement fund. (Some companies are douches and will assign you mostly their own stock, which when it tanks, there goes your retirement... so check your allocation)
2. Get an HSA and max that out. Invest it all in a target date retirement fund. Do not use any of it, pay for medical expenses with cash and save your receipts. Get reimbursed for the receipts when you retire.
3. Contribute to an IRA and max it out (or backdoor roth when you make enough that that's necessary). Invest it all in a target date retirement fund.
4. Keep 6-12 months of living expenses in a high yield savings account.
Replies
phyzix5761 • today at 4:34 AM
Good advice on saving HSA reimbursements until later. Also, after 65 there's no penalty for withdrawing from your HSA; its just taxed at regular income at that point.
tempaccount5050 • today at 3:48 AM
It's incredible how out of touch this place is sometimes.
what • today at 4:50 AM
And this will get you like $1M at 45? You can’t retire on that.
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rogerrogerr • today at 4:55 AM
> Get reimbursed for the receipts when you retire.
Holy crap, you can do this? I always assumed for some reason you had to pay for expenses with an HSA in the year they were incurred.
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Even with this strategy, you're not retiring at 45 unless you are frugal, have cheap hobbies, and never have kids or a non-working spouse. Also take care that you don't have any parents, siblings, or extended family that come to rely on you. Also don't forget expect to live anywhere even remotely expensive, unless you like camping.