A few points to support investing on both. 401k's often have a company match (free money), Roth IRA's are very flexible and grow tax free, both are tax advantaged and good choices. It's good to have a mix of pretax and Roth money, that will usually give the most efficient tax savings in retirement. Depending on your current salary and desired lifestyle in retirement, usually maxing a Roth IRA isn't enough to retire comfortably.
With all that, the flowchart says to get the 401k match first, then max Roth IRA, then increase 401k to meet retirement contribution goal (HSA also gets mixed in there if you have access to one).
ace_deuceee t1_ja8jeku wrote
Reply to Is it generally a good idea to invest in both an employer sponsored 401k and a Roth IRA? by MGSV1989
A few points to support investing on both. 401k's often have a company match (free money), Roth IRA's are very flexible and grow tax free, both are tax advantaged and good choices. It's good to have a mix of pretax and Roth money, that will usually give the most efficient tax savings in retirement. Depending on your current salary and desired lifestyle in retirement, usually maxing a Roth IRA isn't enough to retire comfortably.
With all that, the flowchart says to get the 401k match first, then max Roth IRA, then increase 401k to meet retirement contribution goal (HSA also gets mixed in there if you have access to one).