Long time lurker, first time asker here. I've seen some similar questions to mine here, but nothing exactly in the same circumstance.
I've seen almost near-consensus that the ordering for investing should be as so:
- Fund an employer's 401(k) up until the point that you get the most out of their match.
- Fund a Roth IRA until you hit the yearly maximum.
- Fund your 401(k) until you reach that maximum.
- If you have further cash to invest, you have to put it in an account that is not tax-sheltered.
Right now, I'm contributing 10% of my paycheck to the company-sponsored 401(k), but the company does not offer any sort of match right now, but it is planned to resume in the near-future. Given that there is no match, I was wondering if it would be a better idea suspend or reduce the amount I'm contributing to the 401(k) and move that into another investment vehicle, like a Roth IRA. I also have the option in my 401(k) plan to put a portion of my money in a Roth 401(k).
I'm currently 22 and have no major debts --just daily expenses put on a credit card, which is always paid off at the end of the month. I'm in the US.