Retirement Investing Basics
401(k), Roth IRA, Traditional IRA, HSA — where to put each dollar for retirement and in what order.
The account-funding waterfall
1) 401(k) up to the employer match. 2) HSA if you have an HDHP. 3) Roth IRA to the annual limit. 4) Back to the 401(k) up to the annual limit. 5) Taxable brokerage account.
Roth vs Traditional
Choose Roth if you expect higher tax rates in retirement or you’re early in your career. Choose Traditional if you’re in your peak earning years and want the immediate deduction.
Frequently asked questions
How much should I save for retirement?
15% of gross income is the widely cited target, including any employer match.
Bottom line
Understanding retirement investing basics is one of the highest-leverage things you can do for your financial future. Bookmark this guide, share it with a friend, and use the calculators linked below to run the math on your own numbers. Money decisions are rarely urgent, but they compound — so a good decision today easily becomes an outsized win a decade from now.
Related articles
Beginner's Guide to Investing
Understanding ETFs
Reader comments (3)
This finally cleared up something my previous advisor kept hand-waving. Bookmarking.
Would love a follow-up piece on how this changes for self-employed households.
Really appreciate that you cited primary sources — most sites don’t.