Best way to save for retirement? Im 28?
Should i use 401k or IRA of other?
Public Comments
- Do a 401(k) if you are getting it through your employer, or an IRA if your employer does not offer the other. If you have a choice between both, choose the 401(k) because your employer may match your contributions (they usually do match a certain percentage or amount).
- You can do both...I would
- 401 k would be my suggestion. Something where your company matches a certain percent. Check with your local investment guy he can tell ya.
- Invest in real estate, or invest in something else. Money in savings depreciates over time. Look at the value of the dollar in the past 10 years. Gas was .87 cents in 1998 and real estate has gone up like 300%!!!
- http://www.amazon.com/gp/product/0761513116/103-8542411-0491046?v=glance&n=283155 That book is great and covers how to retire comfortably. It's an easy read.
- Get both a 401(k) - if your employer offers it - and an IRA. Then, if you get laid off, you can roll your 401(k) from your previous employer into your IRA.
- 401K retirement program that your employer offers is a good thing to get into, if they offer it. Most employers match some percentage. I also recommend you start an IRA. Invest post tax dollars. All young people should take this advice, pay yourself first. Before you pay any bill you have pay yourself first. I don't care if you only invest $200 a month to start, you need to be doing it. Your 28 years old, figure out what age it is that you want to retire and how much money it will take to do that and invest. You could retire with a million dollars to maybe $750,000 which isn't bad.
- Don't drink, do drugs or gamble. Avoid wild women, new prescription drugs, and Internet work at home schemes. Seriously! DISCLAIMER: This advice comes from somebody that is old enough to retire, has followed his own advice, and is broke. (Do not expect similar results)
- The type of account you use makes little difference. The most important thing is what kinds of "instruments" you put your money in. "Instruments" are stocks, bonds, CDs, etc. You should have a balance of stocks and bonds for your long term investments. In my opinion, index funds are the way to go. Learn about the Couch Potato Portfolio and the Coffee House Portfolio at the second and third links. Send me your e-mail address and I can e-mail you a couple of short articles about these portfolios. Click on my name and you'll get My Q&A page which shows how to contact me.
- cds yes i put 50,000 in a cd for three years and got 7,000 free money pluse it ties it up so you cant spend it
- Both.... If you have a 401K you can also invest in a ROTH IRA*. Invest in the 401K to the max if: it has a decent "fund family" and a full choice of funds to meet your asset allocation. Invest in your 401K up to the limit of the matching plan if it's a poor plan (broker, insurance companies & banks are the worst... but surly not the only poor choices). Look at ROTH IRA's carefully. They're a great investment if done properly.
- If your employer has a 401(k) plan in place - this is USUALLY the 'best' place to have your retirement money - it is USUALLY the cheapest and easiest, and depending on the plan the employer may have matching contributions - that is free money - why would you give that up? If you max out your 401(k) you cannot place funds into an IRA - I'm not an accountant - but that's the way I believe it works. But you can supplement your retirement with a taxable account if you feel the need. There are lot's of calculators out there on the web. Find out what you need to put away, and then take the 30years (or whatever time frame you believe appropriate) to save money over those 360 months. The tortoise did beat the hare right? Good luck
- You will never make it to retirement, so don't worry about it.
