Rule of thumb

  1. Reduce taxes you have to have to pay.
  2. Play a long term game.
  3. Small losses sting more than the pleasure from high returns.

The Order of Investing for W2 Employees

  1. Secure 3 - 6 months emergency fund.
  2. Pay off high interest debt such as credit card debt.
  3. Contribute to the company 401K until the match
  4. Max ESPP if the company offers it
  5. ROTH IRA
  6. HSA
  7. Contribute to your children's 529
  8. Max 401K
  9. Mega backdoor ROTH
  10. Taxable investing
  11. Real estate / mortgage
  12. Pay off low interest debt
  13. Speculate on higher risk bets (Optional)