M31 married with one baby. Wife is a stay at home mom (no earned income). Recently started getting into future savings but there is so much information to absorb…does the order below of putting money in makes sense?
Money into savings for emergency fund
1. HSA – with employer paying $1000 – max out
2. 401k employer match – max out
3. Roth IRA – max out
4. Individual brokerage account – leftover money
5. 529 plan for baby -$150 a month
Any changes or advice will be incredible!! Thank you!
Does this make sense
byu/Exciting_Orange_6331 inpersonalfinance
Posted by Exciting_Orange_6331
4 Comments
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
Your order looks solid but I’d swap 4 and 5 personally. That 529 has tax advantages that your regular brokerage doesn’t, plus starting early with compound interest for the kid is huge. Even if it’s just $150/month, those tax benefits add up over 18 years
Also make sure you’re actually maxing that HSA contribution limit and not just what your employer gives you – it’s like $4300 for individual coverage this year
Just follow the prime directive
Remember to do a Roth IRA for you and your wife.