this post was submitted on 05 Dec 2023
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If you can, put in at least as much as your company will match. The match is bonus pay for future you.
Invest all the money in an index fund that tracks the S&P 500 and has the lowest expense ratio possible. Vanguard VFIAX is one example among many. Over many years that should give you an average return; not amazingly good, but also not terrible.
If you are earlier in your career, contributing more money now can be very beneficial when you are in your 60's. Though don't put in too much that you become short on cash. For example, I was overly aggressive with 401k contributions early in my career and missed the chance to buy an affordable house in 2008 because I did not have enough cash remaining for a down payment.
It is actually possible to take out a loan against a 401(k), up to $50k depending on account balance (https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-loans). Usually they have low interest rates, and the interest is placed back into the 401(k).
I plan on doing the minimum my company maxed until I can change it at the end of next year. I'm having super bad financial issues (gotta love severely broken bones), and I need as much in my bank account as possible.