Raising my company Roth 401(k) contribution from 10% to 15%

After getting my second paycheck I recalculated the amount of money that I could afford to salt away for retirement and raised my Roth 401(k) contribution rate from 10% of my base pay to 15%. The company (Microsoft) will then contribute a 50% match on the first 6%, for a total match of 3% of my base pay (in any pay period). I've elected to invest 100% of these contributions plus 100% of any dividends in company stock. The contributions are made to an account administered by Fidelity and permits fractional shares.

I'll be keeping cash elsewhere, probably in my Siebert Roth IRA. It remains my intention to target an asset allocation or 20-25% cash and 75-80% in company stock (Microsoft). My contributions will be uneven in allocation from month to month, especially in this first year. There is also the possibility that I might buy or sell some stock if the allocation gets out of line, but such transactions are unlikely in the first year or two of my plan.

It will be my intention to continue to contribute to my non-company Roth IRA account for the foreseeable future. That will probably stay as cash (money market or Treasuries).

Unfortunately, I have another "investment" which soaks up a significant chunk of my monthly income and competes for my financial attention: back taxes, but they will be fully paid off within three years on installment plans. I could opt to pay them down much more aggressively, but it's better to exercise a significant level of discipline to save for retirement and rainy days. Nonetheless, I'll make extra payments whenever I feel that I have a little extra cash at hand. Just last week I made such an extra payment to our beloved IRS. Hey, I'm just doing my part to help tap down the federal budget deficit.

-- Jack Krupansky