conversation: User (CoffeeOnARainyMornin): "I am currently contributing 5% of my paycheck to our Roth 401(k). I get a 20% match on that (maxes out at 5%). Its balance is $37,500 and it's averaging around 9% each year. I am 26 and make $50,000. I am also maxing out my Roth IRA.\n\nThe 401(k) has a yearly fee of 1.81% of the balance plus $200. The match covers half of that, but it still seems like a fairly high expense.\n\nRight now, between my wife and I, we put 17.6% of gross into retirement (22.5% of net). Our total retirement balance is $85,000.\n\nMy first question is: Should I bump up my retirement contribution? We have about $1100 left at the end of each month. I want to be sure we have enough money for when we retire, but I also want to live in the present (fix up the house, go on vacation, etc.).\n\nMy second question is: If I should bump it up, should I put it in my 401(k)? I have a side LLC so I've considered an Individual 401(k) as well (in hopes of achieving a lower expense ratio), but obviously that takes quite a bit more to set up."
  Self: "To echo everyone else: I'd only invest enough to maximize the match and no more. All further investments would go in my IRA and normal taxable investment accounts."
  Eowyn27 (Eowyn27): "How do I set up an IRA? My company does not deal with IRA? "
  Self: "In IRA is not employer sponsered, it's an **I**ndividual **R**etirement **A**ccount. You can open them at just about any banking or investing institution, but Vanguard is a very simple and highly recommended one. Read the FAQ and do some more research. There are still lots of options for what types of investments to hold *within* your IRA."
  