You'll want to balance your investing with buying a house. In 7 years, you should be able to save up enough at your wage to pay cash for it. That will be worth more than any investment because nothing returns as much in the long run as mortgage interest costs you.

Go with the Roth. Yes, it's after tax money. The trade off is pay income tax now when you're making lots or pay it later when you're on a fixed income. Set things up so you get maximum matching from your employer.

Definitely open a Roth IRA. After you've held that money for 5 or more years, you could tap $10K for your FIRST house under current laws--so that's a good option to have. Plus IRAs are much better than 401(k)s in that you can pick your investments.

How much does your employer match your 401(k) with? I'd contribute up to that amount. Who knows what will happen with taxes or anything else--your 401(k) investment vehicles are extremely limited normally, so I am not enthusiastic about them. Roth or not on that--hard to say.

I would personally encourage you to invest in savings instead of a labelled account, such as a 401(k) because you can do as you please. If you have not learned anything about the stock market, that could be a way to go. A related field is commodities. Another tried and true area, which is ONLY for people who do their homework AND can tolerate risk, is real estate. Just flipping a house is NOT the only thing to do in real estate--you could do rentals, commercial, 1031 exchanges, etc.

I think it's great you're willing to wait 7 years for a house and are planing to save. I doubt you can sock that much away per year, but God bless you if you can.

Do yourself a favor and make sure that NOW you also have disability insurance, just in case. Health insurance, renters, car insurance higher than the state requires--in other words, protect yourself NOW from areas where people have OFTEN been known to lose it all by assuming nothing bad could ever happen to them. Not looking for paranoia, but asset protection.

I'd recommend reading Michael J Laurences's Your Money Rules for Financial Freedom--very good index and all to look at just what you care about at any given time.

All Your Worth by Elizabeth Warren probably will be something you'd concur with as it sounds like you might want to avoid a mortgage.

Suze Orman has many good books as well.

Avoid credit card debt, student loans, etc. If you have some, pay off ASAP. It's a good thing to have people NOT have paper on you (loans). Don't EVER cosign for anyone for anything and stay out of "getting" cell phones for people on your account if you have one. I've lost count of the number of people these things have been tragedy for.

you match up to he company matching on both and than switch what is left ove in to a roth ira in your name 3 years before you buy the house quit putting month in the roth ira and place start saving for the down payment!!! good luck!!!!