No 401K option with job - tips to start retirement saving in other ways??
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Anonymous
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So I am in my upper 20s, with an HHI of ~120K. I am working with a small company that does not provide any sort of 401K or other retirement options. I still have a large amount of student loans to pay, and I have been putting the majority of my extra money toward paying off my loans.
I want to start putting a little bit of money toward saving for retirement. Any ideas where to start since my company doesn't offer a 401K? Any suggestions on books to read or online resources that have been helpful in starting some sort of savings plan? Thanks in advance! |
Anonymous
| Start with an IRA. Either Roth or traditional. |
Anonymous
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Yes, open an IRA.
"If you can" by William Bernstein is a great place to start. Short e-book and free on his website. |
Anonymous
This. IRA and also regular savings. Don't let the absence 401k plan at work stop you from retirement savings. Just start saving any way you can. |
Anonymous
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Start with the IRA... and personally, I'd start looking for another company once your loans are paid off (I think it is awesome and super smart that you're being aggressive about those).
The access to putting away an extra $18k a year (only to go up over the years) in a tax advantaged account, whether regular 401k or Roth 401k, is really important. It is worth hundreds of thousands of dollars at retirement, either in additional growth on non-taxed dollars (regular 40k1) or taxes you don't have to pay at withdrawal (Roth 401k). Once your loans are paid off, you're going to need to be saving more than IRA amounts, and no access to a 401k (or similar) would be a dealbreaker at a job for me once I got to that point. You could just invest generally, but that will cost you so much money in the future. Don't underestimate how big of a deal this is once you want to put more than $5,500 a year, and you'll need to once your debt is gone. |
Anonymous
| Are you paid as an employee (w2) or contractor (1099)? |