Max out 401k or use a Roth IRA?

[EngineerInCO]

I'm going to contribute 8% to the traditional 401k (with the max match from my employer). Plus 10% to a Roth IRA.

[disneysteve]

I'm going to contribute 8% to the traditional 401k (with the max match from my employer). Plus 10% to a Roth IRA.

Is that 8% of your income or are you including the match in that 8% figure?

When we recommend 15% of gross to retirement, we mean 15% of your income not including any company match. That is above and beyond the 15%.

[EngineerInCO]

Cool. And the 8% to the traditional 401k does not include the company match (another 8% for 16% total).

[Max G]

I would definitely put money in Roth IRA before 401k. Great way to save for retirement.

[dontgopoor]

Is that 8% of your income or are you including the match in that 8% figure?

When we recommend 15% of gross to retirement, we mean 15% of your income not including any company match. That is above and beyond the 15%.

I agree that this is sound advice and add the word "minimum". You've not mentioned investment allocation. I agree with some of the previous posters that equities are a way to go at your age. My employer used a fund family that offered target retirement funds, which allocated b/w equities and bonds based on the investor's age. I thought the funds were a little too conservative so I tended to tilt the equity portion a little higher.

You seem to be in great financial shape. Congrats.