Six Figures, Now What? — by Just Ask Hannah

Step 01

401(k) Up to Your Employer Match

This is a 100% return on your money. Nothing else in finance guarantees that. Even if you're carrying credit card debt at 20-30% — capture the match first. You'll never find a better deal than "your employer literally doubling your money."

Always first. It's free money — don't leave it on the table.

Step 02

Build a 1-Month Mini Emergency Fund

Before you go to war on your debt, put one month of essentials aside so a flat tire or ER visit doesn't blow up your whole plan. Park it in a high-yield savings account or money market fund — not your checking account where you'll accidentally spend it.

Your safety net while you tackle debt

Step 03

Pay Off Debt Above 5% Interest

Yes, 5% — not the 7-8% you'll hear from most people. Here's why: paying off debt is a guaranteed, after-tax return. The stock market might average 8-10%, but it's not guaranteed and it's not after-tax. Plus there's the psychological weight. Getting rid of that debt changes how you sleep at night.

Guaranteed return + peace of mind. That's the combo.

Step 04

Full Emergency Fund — 3 to 6 Months

Now build the real cushion. How much depends on your risk tolerance: 3 months if you're dual income with solid job security, 6+ months if you're single income or want the freedom to walk away from a bad situation without panicking. Keep it in a HYSA or money market — boring is the point.

Size this to YOUR life — there's no single right answer

Step 05 — This One's Personal

Do You Have Access to an HSA?

You need a High-Deductible Health Plan (HDHP) to qualify. Not sure? Ask your HR.

Not Eligible

No HDHP? No problem.

Skip the decision below entirely.

→ Max your Roth IRA ($7,000)

Eligible

You've got options.

The HSA has a triple tax advantage. The Roth IRA has more flexibility. Which matters more to you right now?

If you're HSA-eligible, choose your path

Maximize Tax Savings

HSA → then Roth IRA

Tax-free in, tax-free growth, tax-free out for medical. No other account does all three.

❶ Max HSA ($4,300 / $8,550) ❷ Max Roth IRA ($7,000)

Maximize Flexibility

Roth IRA → then HSA

Pull out contributions anytime. First home, education, emergencies — your money isn't locked up behind a 20% penalty.

❶ Max Roth IRA ($7,000) ❷ Max HSA ($4,300 / $8,550)

Making too much for a direct Roth IRA contribution? Use the Backdoor Roth strategy.

Step 06

Max Out Your 401(k) — $23,500

You're already getting the match. Now fill it up. But Traditional, Roth, or both?

Traditional

Tax break now

Best if you expect a lower tax rate in retirement.

Roth 401(k)

Tax-free later

Best if you expect the same or higher rate in retirement.

Split It

Hedge your bets

Nobody truly knows future tax rates. Splitting gives you optionality.

Real talk: tax laws change, you might move states, your income could shift. The "split it" option is the most honest answer most of the time.

Step 07

Mega Backdoor Roth

If your plan allows after-tax contributions with in-plan Roth conversion, you can potentially shovel up to $70,000 total into your 401(k). This is elite-level wealth building. But heads up — most plans don't offer this. Check with your HR or benefits team before you get excited.

High impact, but check if your plan actually allows it

Step 08

Taxable Brokerage Account

Maxed out all your tax-advantaged accounts? Welcome to the big leagues. No tax perks on the way in, but also no limits, no restrictions, and favorable long-term capital gains rates. This is where real wealth accumulation happens at scale.

No limits. No rules. Just invest.

Step 09

529 Plan

Got kids or planning to? A 529 gives you tax-free growth for education expenses, and some states throw in a tax deduction on contributions too. Don't prioritize this over your own retirement — put your oxygen mask on first — but once the rest is handled, it's a smart move.

Tax-free education savings — if you've got little ones