Quote Originally Posted by Scott Campbell
Quote Originally Posted by Partial
My parents are now encouraging me to put 20% of my paycheck (72k salary) into a 401k to avoid paying taxes on such a big amount without any deductions.

How do you feel about this?

Great advice. That's what I've always done. This is why they say the first few financial moves you make are no brainers. It's because the goverment is going to subsidize your savings. Once you do the math, the logic becomes pretty compelling.

And then make sure you have enough saved to fully fund your Roth for the year. $5K of after tax dollars.
I thought the limit was 4k?

See, if I do both of these, I won't have any cash for a down payment on any sort of property. What should I do?

14.5k into 401k + 4k for roth = 20k, so very little disposable income to save up for a home.