I've been putting money into my 401k for years but when should i start investing in an IRA and should i go for a Roth IRA or IRA? I am 35.
2006-11-20 04:44:22 · 11 answers · asked by sprydle 5 in Business & Finance ➔ Investing
It is never too early and honestly- over 30 you should have started sooner! Depending on how much you want to invest is the deciding factor between roth and traditional both give you a great opportunity to watch your money grow and some tax benefits which are the best part- tax free money but since this is your future- talk to whomever is doing your 401k and get some expert advice
2006-11-20 04:48:05 · answer #1 · answered by amsea 1 · 0⤊ 0⤋
You should save as much money as you can for retirement starting as soon as you have earnings. Start an IRA account after you have maxed out the contributions you can make to your employers qualified plans such as a 401k. Whether to start a Roth or Traditional IRA depends on your current situation. If you are in a high tax bracker and could use the extra deduction from contributing to an IRA then go with the traditional. The Roth would be beneficial if you want to use the money later to purchase a primary residence or if you expect your post retirement income to be in a high bracket.
2006-11-20 13:08:58 · answer #2 · answered by Jason S 3 · 0⤊ 0⤋
Most states have laws that forbid hiring anyone under age 14. So if you start working at age 14 it would be worth putting money into retirement. This will maximize your growth over your lifetime.
Because, you will not have a tax bracket or if you do it will be low, you might consider a ROTH IRA instaed of a deductible IRA. The biggest differene is that when you retire and take distributions from a ROTH IRA nothing will be taxable.
2006-11-20 16:16:18 · answer #3 · answered by waggy_33 6 · 0⤊ 0⤋
Start now, and put it into a Roth that way when you take money out you don't have to pay taxes on top of it, like you will have to with a regular IRA
2006-11-20 12:49:39 · answer #4 · answered by exodus64_1996 3 · 0⤊ 0⤋
As young as possible. If you can, start today. Otherwise, start tomorrow. I recommend a Roth IRA simply because it is tax deferred, which I see as a good thing. Another tax sheltered investment is definitely something to take advantage of.
2006-11-20 12:46:50 · answer #5 · answered by DJL2 3 · 0⤊ 1⤋
You need to be saving all you can as early as you can, and keep doing it until you retire - then it won't be enough. Inflation is eating away at everyones class of living, so how you want to live in the future depends on how much you save now. I would recommend anything that gives you long term the best return without becoming too involved in the stock market. You still have time, but seriously, get on with your savings. I am putting away about 20% of my income, and that may not be sufficient to keep me through my retirement years with the inflated medical care looming in my future.
2006-11-20 12:56:45 · answer #6 · answered by Doug R 5 · 0⤊ 0⤋
Do the Roth, and start as soon as you can!
2006-11-20 12:47:39 · answer #7 · answered by I ♥ AUG 6 · 0⤊ 0⤋
15 years ago. Seriously though the sooner you start the better off you will be off when your old.
2006-11-20 12:46:51 · answer #8 · answered by MJM 2 · 0⤊ 0⤋
Start as soon as possible. The sooner you start, the better.
2006-11-20 12:46:45 · answer #9 · answered by marisol 2 · 0⤊ 0⤋
roth and start today
2006-11-20 12:46:53 · answer #10 · answered by golferwhoworks 7 · 0⤊ 0⤋