Since I am only 22, I figure today is better than any. I want to retire at 50 or 65 depending how much I have saved. Beside a 401k, what other investments so I be looking into?
2006-11-25 01:58:38 · 10 answers · asked by CuriousHIC 2 in Business & Finance ➔ Personal Finance
You are brillant to be starting now.
There are all kinds of ways / vehicles to save for retirement, and all have different benefits.
401(k) max to at least your company match...that free money. Then don't be conservative with the investment portion. You have 43 years to overcome fluxuations in the market.
Other investments vehicles, like an IRA (tax free going out taxed on exit) or a Roth IRA (taxed going in but tax free out), or an life insurance policy, or buying stocks directly ...depend on your circumstances.
What income tax bracket are you in? How much can you set aside, are you interested in buying a home? Saving for that down payment? Going to school?
In general: you should have a nice mix of stocks and real estate investment, and eventually something conservative like bonds.
Stocks can be via a fund, lots of stocks bundled together, but should include a spread of big and small companies, and domestic and international.
Real estate you can buy and own, or have via real estate investment trusts (REIT).
Whatever investment you choose, please do three things: Look at the costs associated. Look at the tax implications. DO YOUR OWN HOMEWORK. Don't trust someguy on YAHOO answers, or some guy in a nice office and a nice suit, with a smooth line--if something is to good to be true, it is.
2006-11-25 06:07:26 · answer #1 · answered by t S 4 · 0⤊ 0⤋
Your house should hold some equity. Perhaps some land or rental properties. Or include REITs in your 401k (or IRA if your 401k is inflexible) at some point.
You will want some money saved away that's not in your 401k, especially since you may retire before 59 1/2, which is the age when you may first start withdrawing money with no penalty from your 401k.
2006-11-25 02:01:56 · answer #2 · answered by J G 4 · 0⤊ 0⤋
If only we all had "do-overs". At every age - your expenses won't be any lower than they currently are - sock away every penny you can.......You should create many different portfolios, but one I think is really good is a CD Ladder - you open multiple CD's w/ different maturity dates (like one yr, 2 yrs, 6 months)..as time goes by....
you will always have money coming due to you and...you will always have money locked up safely.....and when you are ready to buy (real estate)....all the CD's can be scheduled to mature at that time...
and a bonus....you start to pay attention to rates/stock market/etc. and become more aware of the investment world and will make more informed decisions as you become a savvy investor.
A roth IRA is good, because at 22, you are probably in the lower tax bracket......as you age, your income increases, increasing your tax bracket (better to pay 15% now, then 28% later).
See if your employer offers a ROTH 401k......the contribution limit is much higher than an IRA.
2006-11-25 02:19:40 · answer #3 · answered by Paula M 5 · 0⤊ 0⤋
IRA's are next proper to 401k's. you are able to also make investments further quantities in commonly used (taxable) mutual money. the quantity needed is an finished different question. See retirement planning calculators at constancy, forefront, or T Rowe value.
2016-10-16 10:26:20 · answer #4 · answered by haberstroh 4 · 0⤊ 0⤋
A whole life insurance,long term and short term disability program.Social security disability and Workman's comp (26 weeks) only cover so much the rest is out of pocket.God forbid anything happens that you can't work for some reason but your term insurance will pick up the slack.
2006-11-25 02:11:59 · answer #5 · answered by dreamweaver021557 5 · 0⤊ 0⤋
Wish I'd been that smart at 22! IRAs and CDs for shorter term investing.
2006-11-25 02:03:47 · answer #6 · answered by rebecca_sld 4 · 0⤊ 0⤋
a Roth IRA, investment properties, mutual funds, CDs(for shorter term investing), stock market
2006-11-25 02:07:41 · answer #7 · answered by Stephanie73 6 · 0⤊ 0⤋
Buy property, a house, a co-op, something. Then when you have enough saved, buy another one, maybe a place that you can rent out so that it can pay for itself, and soon you'll be on your way to financial independence. You are amazingly smart for asking this question. Congratulations!!
2006-11-25 02:03:17 · answer #8 · answered by Edward DeVere 2 · 0⤊ 0⤋
take some IRA's out every year-
when you get paid PAY YOURSELF FIRST!
put a percentage in a savings act and when you have enough find a good CD
2006-11-25 04:06:52 · answer #9 · answered by ekleinert 3 · 0⤊ 0⤋
A Roth IRA
2006-11-25 02:00:08 · answer #10 · answered by snvffy 7 · 0⤊ 0⤋