Investing playbook
Max the match
Take the full employer match, fill HSA if you have an HDHP, then IRA, then taxable growth.
The first retirement dollar that usually pays the most is the one that unlocks the employer match. Under a classic 3% + 2% formula that means deferring about 5% of salary. Money left unmatched is not a market forecast; it is a grant you declined.
After the match, Roth vs traditional is tax timing on the same pre-tax paycheck dollars — not equal account deposits. If you have a qualifying HDHP, HSA room is a combined employee-plus-employer ceiling with a separate age-55 catch-up. Then project the pile toward a FIRE number or a net-worth goal with a return you are willing to defend, not a default 10%.
Step 1
Capture the match
Set 401(k) deferrals at least to the match formula, then toward the annual limit.
Step 2
Roth vs traditional
Same pre-tax dollars: Roth if you expect a higher rate later, traditional if you expect lower.
Step 3
HSA triple tax
If you are on an HDHP, fill this year’s HSA before extra taxable investing.
Step 4
Project the pile
Compound the savings rate toward a FIRE number or a net-worth goal.
Limits and guides
Other playbooks
- Tax season — Estimate federal tax, decide whether to itemize, then set withholding and retirement deferrals before year-end.
- Buying a house — Cap the price from income, then see the monthly payment, then check whether a refinance later would recoup costs.
- Paying off debt — Protect a cash buffer, then decide whether extra dollars should hit the loan or an investment account.