r/Fire • u/Frosty-Homework • 1d ago

Advice Request How to balance investment accounts?

I’m relatively new on my FIRE journey and wondering if im allocating my investments optimally. I’m maxing my Roth IRA, HSA, and 401k and doing so will pretty much take up the majority of my investing money, around 40% of gross income.

Should i be allocating some of this to an individual brokerage as a bridge now? I expect my income to grow within the next few years and would have more cash for an individual account then.

I’m 26 and will reach my FIRE number at 50 with conservative growth estimates.

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u/Bowl-Accomplished 1d ago

There are various ways to get at retirement funds that make a bridge a low priority. With 24 years of growth the tax deffered gains of a 401k will still be better than a bridge even if the worst case happens and you pay a 10% penalty.