i recently started a new job, it's a union job, which has great medical benefits and sick time and paid time off, but it does not offer a retirement plan. what should i be doing to save for retirement?
2007-05-31 04:43:42 · 7 answers · asked by lovesmehendi 1 in Business & Finance ➔ Personal Finance
Roth IRA. Max out the Roth but the total percentage of your pay that should go into retirement is about 15%. So if the Roth max (about $4k, depending on the year and your age) is less than 15% of your take home pay then put the rest in mutual funds.
I also suggest you read: The Total Money Makeover by Ramsey for the when and why's of investing and debt. Ramsey's website also has "ELPs" listed (endorse local providers) that can help you set these accounts up for you.
I also suggest you read Suze Orman (she has a lot of books, pick one that is closest to your situation). I would start with Ramsey and then read Orman. Orman is A LOT more technical than Ramsey and the easy definitions that Ramsey uses will help you read Orman.
Good luck!
2007-05-31 05:40:45 · answer #1 · answered by mldjay 5 · 0⤊ 0⤋
Start your own retirement account. The most common one is an IRA (Individual Retirement Account). There are 2 basic types of IRAs the Roth and Traditional.
A Roth IRA gives you no immediate tax advantage, meaning the money you put in is after taxes. All interest earned is not taxed until you take the money out. You can contribute to the Roth until you die.
A Traditional IRA gives you an up front tax benefit. Any money put into a Traditional IRA may be tax deductible (meaning its like you didn't make it that year). I say may because if you make more than ~$100k a year this wouldn't work.
With either type of IRA you can open a basic savings account, a CD, an annuity, or investment accounts. Visit your financial institution to learn more about what they offer.
If you feel you don't have enough to start an IRA right now I would create an automatic savings plan. Your financial institution should be able to set up an automatic transfer of money on your payday from checking to a savings account. This allows for easy savings, and what you don't see in checking is harder to spend.
2007-05-31 08:14:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
First step is a Roth IRA. Second step is cornering your union rep and asking why they haven't been pushing for a retirement plan.
2007-05-31 06:27:23 · answer #3 · answered by Thomas O 2 · 0⤊ 0⤋
IRAs are a wise choice. I too would recommend the Roth IRA if you are eligible (depends on your income).
I'd establish the IRA at an investment firm and select some good stock mutual funds to invest in.
2007-05-31 07:13:05 · answer #4 · answered by derek 4 · 0⤊ 0⤋
You can choose between a traditional IRA or Roth IRA. If you choose traditional then any amount you contribute is tax deductible if you fall under a certain salary range
2007-05-31 04:54:47 · answer #5 · answered by prodigychild_21 4 · 0⤊ 0⤋
Put money into an IRA each year - that will allow it to grow tax-deferred. And there's nothing to stop you from investing to save toward retirement.
2007-05-31 04:53:49 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
a Roth IRA account.. =] its really simple and you build up money over the years.
2007-05-31 04:52:50 · answer #7 · answered by angelicsnowbabii 5 · 0⤊ 0⤋