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22 years old - opened up a Roth IRA. How else can I save for retirement?

Discussion in 'BBS Hangout' started by jacoby, Jul 6, 2018.

  1. jacoby

    jacoby Member

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    So I just maxed out the first year of my Roth IRA, using Vanguard's set date 2060 mutual fund. I plan to max it out annually.

    Besides a Roth, what else can I invest my future in? My employer doesn't match 401k contributions, and I'm unsure if they do anything at all with 401k's. Would I be able to set one up without my job?

    Any advice is welcomed. I don't want to end up like my parents -- 60 years old with $0 in retirement. Thanks everyone.
     
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  2. Sajan

    Sajan Member

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    I believe the order of investing is:
    3-6 months of monthly expenses in savings
    401k till employers match
    Roth IRA ($5500)
    Back to 401k till you meet your max yearly contribution limit
    Then regular brokerage account

    Also I don't do those 2060 or whatever funds. Everything I invest in is a balance of 3 funds.
    So my entire portfolio (from work to roth to regular brokerage..) is balanced to have 90% stocks, 10% bond using these funds:
    1. Total stock market
    2. Total international stock
    3. Total bonds

    https://www.bogleheads.org/wiki/Three-fund_portfolio
     
  3. jacoby

    jacoby Member

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    I know all about Roths, but I know next to nothing about 401ks. Is there a way I can contribute to a 401k without it being deducted from my paychecks?

    Are they similar to Roths (or IRA's in general) in any way?
     
  4. Sajan

    Sajan Member

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    Don't hold me to this but I believe you might be out of luck in terms of 401k.
    Your options are either a traditional IRA or a Roth IRA with the total limits for both combing being $5500 a year.
     
  5. Space Ghost

    Space Ghost Contributing Member

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    I love my Roths. I am with a very small company who is looking to offer retirement benefits. We have talked about Roths vs IRA's/401ks.

    1st and foremost, yes, have a rainy day fund.
    2nd, match any employment benefit before anything else. I would almost put this first.

    Depending on your tax writeoffs, Roths vs IRA's have their benefits. As you know, Roths interest is tax free.

    A couple things to keep in mind with Roths; Since your principle is taxed, you can pull this principle out at anytime w/out penalty (401k might be different). There are a few qualifying incidents where you can pull the Roth interest out w/out penalty, such as a 1st time home buyers.

    If you have more to invest outside of employer contribution and Roth max, I'd look into a wide variety of investment opportunities.
     
  6. jacoby

    jacoby Member

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    Do you mind elaborating on this? As of now, I only have a Roth IRA. I'm unsure if I'm eligible for a 401k (new to investing/planning). Also, can you discuss possibilities for me in regards to other investment opportunities? I played around with the stock market when I was in High School and struck gold with Tesla -- but I doubt I have the time or patience to truly learn the nuances of stock trading at this point in my life.
     
  7. Daddy Long Legs

    Daddy Long Legs H- Town Harden

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  8. Pole

    Pole Houston Rockets--Tilman Fertitta's latest mess.

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    Make sure you're phased out of your Roth by age 23, and you should be set.
     
  9. TheRealist137

    TheRealist137 Member

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    Still contribute into your 401k for your tax benefits, even if your employer doesn't match. For you, you should be set with the Roth and a 401K, Just put a percentage in every paycheck and don't think about it again. Every once in a while you will decide to look at your 401K and get pleasantly surprised at how much money has accumulated.
     
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  10. Manny Ramirez

    Manny Ramirez The Music Man

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    You should still contribute to the 401(k) even if they dont match. I would think that after contributing for so many years that they would start matching. If you have the money and can afford to do it, you can always open up a mutual fund.
     
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  11. No Worries

    No Worries Contributing Member

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    This is excellent advice.

    The decision that will impact your retirement the most is how much you save.

    The second most important thing is that you invest your savings into the stock market. Equities will give you more growth potential over a long time horizon.
     
  12. fallenphoenix

    fallenphoenix Contributing Member

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    There's nothing wrong with target funds if you don't want to rebalance your portfolio yourself.
     
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  13. Ziggy

    Ziggy QUEEN ANON

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    What funds are available in your employer sponsored 401k?
     
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  14. Sajan

    Sajan Member

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    This is important.
    The only one I like in mine is the fidelity s&p 500 index. Everything else has too high of an expense ratio.

    The rest of my investments are at vanguard. (brokerage, rollover ira, roth ira).
     
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  15. Roscoe Arbuckle

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    1st off, well done, kid. You should be able to retire early with this strategy.

    You should still max out your 401k, simply for dollar cost averaging, as well as it just coming out of your paycheck. ie. set it and forget it. Go with aggressive growth and international funds until at least 40.
     
  16. KingCheetah

    KingCheetah Contributing Member

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    Humble brag.
     
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  17. KingCheetah

    KingCheetah Contributing Member

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    Weed stocks and Bell South.
     
  18. Mr. Brightside

    Mr. Brightside Contributing Member

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    You need to diversify your bonds.
     
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  19. Ziggy

    Ziggy QUEEN ANON

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    Yee. Read Junk Bond Millionare and Rich Dad, b**** Dad.
     
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  20. fallenphoenix

    fallenphoenix Contributing Member

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    WUTANG
     

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