Hello, I (25F) have just gotten my first full time job w benefits. A lot of it is very confusing for me and I have been told to contribute as much as possible as early as possible but I am just unsure of exactly what to do and the benefits or costs of doing too much? I also can sign up for supplemental life insurance now without having to be approved so I wanted to sign up for that as well. So if anyone can help give me some guidance I would appreciate it!
My salary is $60k and my current contribution is set at 6% with annual 1% increase. It says “my company will contribute a dollar for every dollar I contribute- up to 4% of my eligible compensation” it also says I am limited at 75% of my pay or $23,500. It also says I can choose to contribute to either a traditional or Roth 401k. The 6% was the baseline that automatically contributed when I received the benefits but I am unsure if I should add more to it or not.
For the supplemental life insurance, I can choose to do 0.5x, 1x, 1.5x, 2x, 3x, 4x, or 5x annual salary (max $500,000) and am unsure which I should pick. They do provide basic life insurance at 1x, but everyone I have met in onboarding has told me to choose the supplemental life insurance now as it will be harder later. All of this goes way over my head and any advice is appreciated 🤣 TIA
