I'm 30 years old and unfortunately I'm not in a career where they have a 401K at all, much less a match program. So that leaves it up to me to figure something out. I would like to retire a millionaire and plan on making that happen. I just don't know where to start with various retirement investment accounts. From what I can figure out is Roth IRA is the place I need to go based on income IIRC. I make $50,000 a year.
May I have some suggestions and/or places to start? I really want to start this in 2015 and do it right. I do know that the IRA has a max contribution of $5,500, which I can support. Are there different kinds of Roth's, or places that I shouldn't allow to do my Roth? Online vs a local establishment. I'm a member of a CU, would that be a good place to do it?
I've have been waiting to talk to a financial planner friend (GF's sister) for a few months now and we can never seem to get together and 2015 is knocking on the door.
Thanks as always!
Personal:
@Broke_Triathlete wrote:I'm 30 years old and unfortunately I'm not in a career where they have a 401K at all, much less a match program. So that leaves it up to me to figure something out. I would like to retire a millionaire and plan on making that happen. I just don't know where to start with various retirement investment accounts. From what I can figure out is Roth IRA is the place I need to go based on income IIRC. I make $50,000 a year.
May I have some suggestions and/or places to start? I really want to start this in 2015 and do it right. I do know that the IRA has a max contribution of $5,500, which I can support. Are there different kinds of Roth's, or places that I shouldn't allow to do my Roth? Online vs a local establishment. I'm a member of a CU, would that be a good place to do it?
I've have been waiting to talk to a financial planner friend (GF's sister) for a few months now and we can never seem to get together and 2015 is knocking on the door.
Thanks as always!
I am not expert in the field but setting up roth Ira would be best place to start. If you are unsure what mutual funds, etf, or stocks you want to buy then I would put them in money market account then you can decide where to put the money. I would suggest vanguard or fidelity and put in a cheap index target retirement fund.
Another option I have been thinking about is investing via hsa. You could use it as an pseudo traditional Ira as long as you don't withdraw before age 72.
Glider yes I'm single as of now. Probably going to throw my life away in a year and get hitched lol. I can contribute some now. How would that help me.
I am 100% completely new to this so you're dealing with a complete newbie. I've never looked into money market accounts of anything like that.
Thank you both for your posts!!
I am 100% completely new to this so you're dealing with a complete newbie. I've never looked into money market accounts of anything like that.
Thank you both for your posts!!
@thom02099 wrote:
@Broke_Triathlete wrote:I'm 30 years old and unfortunately I'm not in a career where they have a 401K at all, much less a match program. So that leaves it up to me to figure something out. I would like to retire a millionaire and plan on making that happen. I just don't know where to start with various retirement investment accounts. From what I can figure out is Roth IRA is the place I need to go based on income IIRC. I make $50,000 a year.
May I have some suggestions and/or places to start? I really want to start this in 2015 and do it right. I do know that the IRA has a max contribution of $5,500, which I can support. Are there different kinds of Roth's, or places that I shouldn't allow to do my Roth? Online vs a local establishment. I'm a member of a CU, would that be a good place to do it?
I've have been waiting to talk to a financial planner friend (GF's sister) for a few months now and we can never seem to get together and 2015 is knocking on the door.
Thanks as always!
Then you need to look for another financial planner. That is the best course of action for you, to find one that is a fee-only planner who's not trying to sell you products that they provide. That can come later. You need advice first. You are young; 30 is a good age to start planning. You've got at least 32-35 years ahead of you. Do you anticipate staying in the same career field with the same employer for the next 30+ years? If you're in a career that, in general, doesn't provide a 401(k) at all as you stated, then you could always consider a career change at some point in the next 30+ years. Whatever you decide to do, a bit of advice that's been a truism for a lot of folks -- PAY YOUSELF FIRST! Put money away for your benefit for the long term. I wish I'd known this waaaaay back when I was 30!
Thank you for your post. You mean as in stash a percentage of your paycheck? If that's what you mean I have been doing that. I have 6 months of emergency funds set, and no matter where the money comes from (paycheck or selling on eBay) I put 10% of that in my savings. I am thinking about upping it to 20%. I'm frugile and don't need a lot to live. I don't have a car payment and only have student loans that I'll pay forever one (like 20 years or so) so the $60 a month payment really isn't hindering me.
@Anonymous wrote:
Open a Roth IRA with Vanguard. Target funds are nice for newbies.
Understand how much risk you can handle and pick a target date based on that, instead of retirement year.
Does you company provide health coverage? You can use HDHP + HSA + limited FSA to shelter more money.
Do you have a side job, not w-2? You can open up a solo 401k. I would choose E-trade for solo 401k.
Myfico is great for credit, but for investment advice you should head over to bogleheads.
Thanks for your post. Yes I do stuff on the side as well and my company does provide health. I pay for dental. Would a solo 401K be better than a Roth or should I do both? I can cover the max contribution to Roth each year ($5,500) but I'm not so sure I can do much more with costs of living, hobbies, etc. I'll check out bogleheads.
I'm come to the point where I realize I have no one to fall back on and I can only depend on myself. My whole family is not working and it's irritating that everyone around me has rich parents that buy anything and everything for their kids, and I have no one. Furthermore these kids are completely unappreciate and have no clue what the real world is like. "Daddy I need $5,000 for this, or $8,000 for that... and THEY GET IT HANDED TO THEM!!! One co worker makes $60K and has 0 savings and has rich parents that pay the majority of his costs of living. If I made that I'd be able to do so much more than what I can do now. I keep telling myself though... it'll be ok because in the end I'll be set up nicely while they are looking for a way to make a living at retirement age because they don't have a savings or investments.
@heyitsyeh wrote:It's good that you are learning to be fiscally responsible and independent from parental support, it is priceless and will pay dividends later in life not just financially but personally as well. That being said, you shouldn't judge people that move back home for a time because everyone's situation is different. Using your co-worker as an example, unless he is living in a rich neighborhood it doesn't take rich parents to provide basic living expenses especially if he already has an income. For all you know, he may be using that saved money to pay off his student loans faster so that he can eventually strike out on his own debt-free.
I also lived with my parents for about a year after college only because it made no sense to live elsewhere when your parents are literally 5 minutes from the office.
Also you are right-on with starting your own 401k, if only because you have access to that 17.5k limit over the measly 5.5k IRA.
Which has the better rate of return? There's no way I can contribute up to $17.5K as I can barely cover the $5.5K for the IRA.
I'm not judging anyone. I know their situation (co worker) because I'm considered part of their family and work for their family business. He makes a bunch of money, blows it on weed and the casino, then goes back to mom and dad and ask for thousands of dollars and they just give it to him. Rent, car payment, cell phone, date money, everything is covered. He gets to pocket his entire $60K salary (minus taxes of course) and could save a bunch of money. Something a lot of us are not fortunate enough to have. He is living in a rich neighborhood and has never had a bill in his life... but has no savings. His parents pay for his half and his girlfriend pays the other. He's going to be in trouble when his parents are gone. Last week he asked his parents for date money... he's 29 years old. He never went to college so he doesn't have any loans. People who haven't had to deal with the real world while my (and so many others) struggles are real. Then on the other hand are so rude and rotten to their parents when they ask them to do anything. It's very said and laughable. What irritates me is being so ungrateful and unappreciative for having everything handed to you.. God forbid you actually had to do some work to earn it.
Just as you say I shouldn't judge (which I can see how you thought I was because I didn't thoroughly explain myself in my previous post) I think you judged me a little bit from my post. I know not to judge a book by it's cover. Nothing wrong with having to moving back home. I never bought moving back home up so I'm not sure where you got that from. I also had to live at home after college. It's what a ton of people have to do and in my opinion it's a smart thing to do. Peoples situations are different as you said.So with that said...
I'm envious now, for sure, but I won't be 20-30 years from now when I'm set.