No. of Recommendations: 1
This is mostly a market timing question. It is great that you are planning to save/invest the funds. Deciding which is better is a high class question.

If your house downpayment is well funded already, putting funds into the 401k becomes more attractive. If it is short, by all means the downpayment should come first.

Otherwise, it becomes a question of which will pay bigger returns: real estate or stock market. Stock market right now is looking very good, and if that continues, its a great time to buy in. But no one knows for sure. So its almost a matter of flipping a coin.

Fund your retirement account as soon as you can. Giving your funds more time to grow gives you a better chance of assembling an adequate retirement fund.
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