11. Then give your raise to your 401k/403b

11. Give every raise you get to your 401k/403b until you hit the annual maximum (2011 = $16,500) This could take a while.

So you are out of debt and participate in your companies 401k/403b to the point that you get the match. You also max out your Roth IRA to the tune of $5000.00 annually (6K if your over 50). The next logical tax shelter to take advantage of would be your 401k/403b. You will not receive an additional match but the tax shelter is worth it while your still employed. The idea is to fully fund all tax sheltered accounts first and then expand into more traditional investments. 

Every time you receive a raise. Go to HR and ask to up your contribution by the same amount. The total limit in 2012 is $17,000.00. Depending on how much you make that could take a couple of decades worth of raises diverted to your 401k/403b. So what!, Since you already have to work you might as well let it do the heavy lifting when it comes to retirement saving. If you can afford more, do it! Shoot for 17k if you can. You will not regret taking advantage of these tax shelters while they are still available to you.



investing is incremental.