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Precursor: I work in the software industry and as such, I'm pretty subjected to the massive instability: possibly no demand, and also i don't expect to be able to keep up with the technology when i'm 40+. (I'm thinking about switching careers when I invariably hit that impending mid-life crisis).

That said, i'm 25, and want to build out a good retirement plan. I've heard about 401k account and Roth IRA, but i don't really understand them. I've barely contributed to 401k accounts and $0 on Roth IRA (i know, i know, i haven't been very good about it). I would like to know... what all options are there for me and what might make sense in my case?

My situation: I'm 25, (filing single on taxes until 30+), live in CA, and pay a stupidly obscene amount of tax for a middle class 25 year old. I've started to try to put $15k this year in my 401k (but i'm still not sure how to manage that correctly). I live fairly frugally (for CA standards) so i never try to live above my means - i can very comfortably spare $3k a month (at max $4k) if i don't put any money into 401k account. I don't make over 127k, it's very slightly under that, so i can contribute to Roth IRA(?). i'm not sure if i can only do partial contributions or not?

what would you do in my situation, especially given that there's a chance i may have a career switch when i'm 40? assume that my salary will be around the same for the next 4-6 years, if i can still get a job.

Dzt
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Your retirement plan shouldn't necessarily be dictated by your perceived employment risks. If you're feeling insecure about your short-term job longevity and mid-career prospects, you will likely benefit from a thoughtful and robust emergency fund plan. Your retirement plan is really designed to fund your life after work, so the usual advice to contribute as much as you can as early as you can applies either way. While a well-funded retirement portfolio will help you feel generally more secure in the long run (and worst case can be used earlier), a good emergency fund will do more to address your near-term concerns. Both retirement and emergency fund planning are fundamental to a comprehensive personal finance plan.

This post on StackExchange has some basic info about your retirement options. Given your spare income, you should be able to fully fund an IRA and your 401K every year with some left over. Check the fees in your 401K to determine if you really want to fully fund the 401K past employer matching. There are several good answers and info about that here. Low-cost mutual funds are a good choice for starting your IRA.

There is a lot of different advice about emergency funds (check here) ranging from x months salary in savings to detailed planning for each of your expenses. Regardless of which method you chose, it is important to think about your personal risk tolerance and create a plan that addresses your personal needs. It's difficult to live life and perform well at work if you're always worried about your situation. A good emergency plan should go a long way toward calming those fears.

Your concern about reaching mid-life and becoming obsolete or unable to keep up in your career may be premature. Of course your mind, body, and your abilities will change over the years, but it is very difficult to predict where you will be, what you will be doing, and whether your experience will offset any potential decrease in your ability to keep up. It's good to think ahead and consider the "what-ifs", but keep in mind that those scenarios are not preordained. There isn't anything special about being 40 that will force you into a different line of work if you don't want to switch.

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