Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:
- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings
If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.
I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?