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The important part is that if you really set your contributions to 65% then you will max out your annual retirement contribution limits early on (front loading)
by barik 7y ago
The important part is that if you really set your contributions to 65% then you will max out your annual retirement contribution limits early on (front loading). So the rest of the year you will receive your full paycheck (- ESPP, which you'll also get back every quarter).
So the situation is not as dire as it appears.
- hyperrail 7y agoI see. It is not clear from reading those top bullet points alone that you are not suggesting I follow the "save as much as possible" strategy the whole calendar year, but only until I reach the 401(k) limit. There is also a bullet point "only invest in tax-sheltered accounts", but I could also save money in a bank savings account, which I would consider a taxable non-"investment" account.