How should I allocate my retirment investments?

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leftlovin_darnright

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My wife and I have about 25 years before we want to retire. We have $55,000 in 401k accounts. We each put 15% of our salaries into 401k. To get full corporate matching, we need to put 5% into 401k. Is putting all 15% into 401k the smart thing to do? With having to pay taxes on 401k withdrawals after retirement, I'm wondering if we are hurting ourselves by putting 15% into a 401k (instead of 5% into 401k, and 10% into other vehicles, or some other allocation). Any recommendations on where we should be invest our 15%, specifically, how much in 401k, IRA, Roth IRA, or other vehicles?
 
It depends on your personal preference. I've read that between 2% and 5% is a great contribution rate. And if you decide to reduce your contribution rate, the other 10%, if you can afford which I guess you can, can go into a money market account or high yield savings account. In my opinion, you want that other 10%, or close to it, to be available for emergencies. The bottom line is though, if you can afford, you should make your money work for you. Pay yourself first.
 
It depends on your personal preference. I've read that between 2% and 5% is a great contribution rate. And if you decide to reduce your contribution rate, the other 10%, if you can afford which I guess you can, can go into a money market account or high yield savings account. In my opinion, you want that other 10%, or close to it, to be available for emergencies. The bottom line is though, if you can afford, you should make your money work for you. Pay yourself first.
 
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