401(k) Strategy — Match First, Then IRA, Then Brokerage

Order of operations (why it works)

1. 401(k) match (free money)
2. IRA (often lower fees + broader choices)
3. Back to 401(k) to annual limit
4. Taxable brokerage for extra investing

How to apply it this month

• Increase 401(k) to at least the full employer match
• Open/confirm a low‑fee IRA (Roth or Traditional based on taxes)
• Automate monthly contributions to both

Roth or Traditional?

• Roth: pay tax now, grow tax‑free — good if you expect higher future taxes
• Traditional: reduce today’s taxable income — good if you’re in a high bracket now

Common mistakes

• Missing match because of probation period (set a reminder!)
• Leaving money in high‑fee target funds when index options exist
• Stopping contributions during market dips