I’ve just graduated college and started my first full-time job a couple months ago. Lately I’ve been reading articles about Roth IRA’s and how young people should consider them because they can save a huge amount of money by the time they retire with the smallest amount of input (since they’re getting started earlier). I know I’m still young, but I want to set myself up for a comfortable future. I’m making $35k/year salary, but my company does not have a 401K plan (as of yet).
I would like to try putting away $250 a month in order to create a nest egg for when I retire (and maybe allow myself to retire a little earlier?). Is a Roth IRA the way to go, or is there something better I could do with my money to allow it to increase over the years? I don’t know much about this stuff and don’t even know where to start. I do know that IRAs have something to do with investments, which is risky and scares me a little…
Is there something better than a IRA for retirement?
We’re beginning our retirement savings, and are not sure why our money market isn’t the best place for the money; I assume for tax reasons.
I’m 27, husband is 34. We’re both going to start IRAs. I don’t know if it’s better to save more now and put less into IRAS. We are halfway to reaching the goal amount for our emergency savings. We intend on going to grad school also. But, we are behind with retirement, so I wasn’t sure if I should beef that up now and be okay with saving less each month.
Last year, I rolled all of my investments from the 401K plans of previous employers into a mutual fund IRA rollover account. I have recently been considering putting that money into a Roth IRA. I would not be contributing regularly to the Roth IRA, were I to do it.
What are the advantages and/or disadvantages of doing this? Is my money as likely to grow as it would in a mutual fund investment? What are the tax issues involved with such a move?
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