401k or Alternative?

Question

So I work (full-time status) at a Catholic Church as music director. I also work a summer gig as a ferry boat captain (3 months). Is there any type of 401K I could get? Neither place seems to offer a company match, but do other types exisit?

Answer 1

First, I have to say, that though well intentioned, many of the answers I see in the Investing category are way over simplified and some downright scary. As someone who has spent over 20 years helping clients with these types of questions, really there is more info needed. You said they don't "match" the 401K. Do they have one? Most likely, you chuch job would offer a 403B plan if they offer anything. Ask them about that. If yes, contribute what you can pre-tax. As a Ferry Boat Captain, do you work as an Independant Contractor or as an Employee. That is do you get a 1099 form or a W-2 for your taxes at the end of the year?
If there is no plan at your chuch, you would probably qualify to do a Roth Ira, where you get no tax dedution but your money grows tax free, and is tax free on withdrawl if you are 59 1/2 years old or older. Or a Traditional Ira where you get to deduct the amount you contribute from your income for taxes, but the money is taxable if withdrawn prior to being 59 1/2 years old.
For the Ferry Boat Captain, if your receive a 1099, you may be able to start your own Simple IRA, where the amount you can contribute a larger amount.
As far as where to learn go to the web sites of a few Mutual Funds (Vanguard, American, Fidelity) a just a few and very good. and see what works for you.
Yours is a bit complicated, so I would also suggest seeing an Investment person who can help you with this, to get the best plan. Then find the Investments that are right for you depending on you age and other risk factors. To put all your money in 1 investment which excludes 99.9% percent of the market (Index Funds) is dangerous. Perhaps using a mix of large cap, small cap, growth and value funds would offer you flexibility and diversification. Don't worry, it's not as scary as it sounds. Go to the web sites, read a little, see a professional (Brokerage Firm, Bank) ect. And get help.
Best of luck to you!!!

Answer 2

401K start with the employer. If I were you I would go to Vanguard Mutual Funds and open a Roth IRA the send in the max allowed each year. Have them put it in an Index Fund of the DOW 500 stocks. You would never have to pay any tax on the money when you take it out. You would have one of best brokerage companies with Vanguard. You would not have to worry about any one stock or any other stock catagory. Just keep putting money in each year and you will be very happy with the results.

Answer 3

Simple...... go to a decent sized bank and deposit your money. Once you have it there pick an account that has a mix of mutuals, CDs and liquid cash. If you have enough pick the silver, gold or whatever account you qualify for. This means the amount you will just let sit.