See which funds to buy, how much to put in each, and which investment accounts to prioritize first.
Free and educational. Not investment advice.
Most of your money belongs in low-cost index funds. Answer four questions and your mix updates on the right.
Buy these four funds at Fidelity.
Once a year, send new money to whichever fund has fallen below its target.
Next: choose your accountsThe account matters more than the fund. Work down the list and fill each one before moving on. Tap a step for details and 2026 limits.
Three to six months of essential expenses in a high-yield savings account. Without a cash buffer, a single emergency forces you to sell investments at a loss or take on penalty-laden withdrawals. This is insurance, not investing.
Pay off anything above ~7–8% APR. Eliminating a 20% credit card balance is a guaranteed, risk-free 20% return — better than any investment can promise. Sub-5% debt (mortgages, federal student loans) can coexist with investing.
A 50% match is an instant 50% return; a 100% match doubles your money the day it lands. Contribute enough to capture every dollar your employer offers — no other investment guarantees that kind of upside.
2026 limits: $24,500 employee deferral. Age 50+ catch-up: +$8,000. Ages 60–63 super catch-up: +$11,250. Combined employee + employer cap: $72,000.
New for 2026: if you earned over $150,000 in FICA wages the prior year, catch-up contributions must be made on a Roth basis.
Contributions go in pre-tax, growth is tax-free, and qualified medical withdrawals are tax-free. After age 65 you can pull money out for any purpose at ordinary income rates — effectively a second IRA.
2026 limits: $4,400 individual / $8,750 family. Age 55+ catch-up: +$1,000.
The move most people miss: pay current medical bills out of pocket, save the receipts, and invest the HSA balance like a retirement account. You can reimburse yourself decades later, tax-free.
Unlike a 401(k), the Roth IRA has no required minimum distributions and lets you withdraw contributions (not earnings) anytime without penalty. That makes it both a retirement vehicle and a flexible long-term reserve.
2026 Roth IRA limits: $7,500 ($8,600 age 50+). Income phase-out: single $153k–$168k MAGI; married filing jointly $242k–$252k MAGI.
Earn too much? Use the Backdoor Roth — contribute non-deductible to a Traditional IRA, then convert immediately. Watch the pro-rata rule if you already hold pre-tax IRA balances.
Once the match and Roth IRA are handled, return to the 401(k) and fill it to the $24,500 employee deferral cap. Even at Roth-401(k) rates the account shelters far more than any IRA can.
Choose Roth 401(k) if you're early-career and expect to be in the same or higher tax bracket later; choose pre-tax if you're peak-earnings and expect to draw the money down at lower rates.
ESPP: a 10–15% discount with a lookback provision can produce a 20–30% instant return. Sell immediately on purchase — your salary already exposes you to your employer; don't let your investments do it too.
Mega Backdoor Roth: if your 401(k) allows after-tax contributions plus in-plan Roth conversions, you can stuff the difference between your contributions + match and the $72,000 total cap straight into Roth. Often the single largest move available to high earners.
Once tax-advantaged space is full, the taxable account is where real long-term wealth compounds. Hold broad-market index funds and ETFs to keep distributions low, harvest losses against gains, and use the long-term capital gains rate (0%, 15%, or 20%) by holding more than a year.
Place bond funds and REITs inside tax-advantaged accounts when possible — they generate ordinary income that hurts most in a taxable account.
Secure your own oxygen mask first. Children have access to loans, scholarships, and work-study; underfunding retirement turns you into a financial burden on them later. If your state offers a 529 tax deduction, contribute at least enough to capture it.
SECURE 2.0 update: unused 529 funds can roll over to the beneficiary's Roth IRA — account open 15+ years, $35,000 lifetime cap, subject to annual Roth IRA limits.
I Bonds adjust with inflation and are backed by the U.S. Treasury, capped at $10,000 per person per year. EE Bonds double in value if held 20 years. Both work as extensions of the emergency fund or near-term savings goals.
After all of that — pay down low-interest debt as you choose, and spend on the experiences and giving that make the wealth worth building in the first place. Money is a tool, not a score.
Tonight's 30 highest-ranked U.S. companies, updated September 29, 2026. Keep this to 5–10% of what you invest. So far our top 10 picks have returned +4.7% against +3.9% for the S&P 500.