I am trying to figure out which would be better to do. I'm 30 years old but haven't started a 401k or IRA yet and need to do so ASAP. I also have $85,000 in student loans at a low interest rate. My income is $52,000/yr. What do I do???
2007-08-30 04:52:15 · 2 answers · asked by kimmer 1 in Business & Finance ➔ Personal Finance
If your student loans are at low interest rates, start socking away some money in a 401K or ROTH IRA. The 401K will help bring down your current taxable income, so if you put let's say 5% of your salary to the 401K, you will only see a decrease in your check of about 3%
2007-08-30 05:01:35 · answer #1 · answered by blizebliz 5 · 0⤊ 0⤋
i think you should do a little of both. As far as the IRA, i would do one high risk investment to make you a little money for lost time without a retirement account, then do a regular IRA which you can open at your local bank and keep regularily contributing to. I would open a roth if i were your age but talk it over with your banker. Lifes too short, before you know it youll be old and broke if you dont start and IRA
2007-08-30 05:17:35 · answer #2 · answered by katekate888 2 · 0⤊ 0⤋
if the 401k is a matching take advanage of the free money == sock the max into it == than since it will lower you taxes i would also try if possible to plug along and put 4k in a roth ira and of course keep up the payments on the student loan!!!
2007-09-02 14:58:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If your employer matches your 401K contributions, be sure to contribute the max -- the employer matching is free money.
2007-08-30 05:12:57 · answer #4 · answered by bdancer222 7 · 1⤊ 0⤋