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Prioritize 401k Contributions
- Prioritize contributing to your 401k first, at least up to the employer match.\n- Aim for at least 10% contribution for healthy retirement savings progression.
Traditional 401k Tax Benefits
- Traditional 401k contributions create more investable income today via upfront tax breaks.\n- It's unlikely you'll be taxed higher in retirement than during your working years.
Psychology of 401k Contributions
- People feel losses more intensely than gains, making upfront 401k contributions easier mentally.\n- Setting contributions early helps avoid the challenge of increasing them later.