Hello all, first post here after finding this group 10 minutes ago
Quick background; I am a 23 year old making $46,500 a year before taxes. Also have a finance degree so I'm somewhat educated in the area. My only debt is a $10,000 car loan that has a 3.5% interest rate for a 48 month term. I have been putting $600 a month into a basic savings account, and now that I have about 4 months expenses built up ($6,000) I want to start going hard into retirement because I understand the power of compound interest.
My work offers me a 401(k) with a company match up to 4% of my pay. So currently I contribute 4% into a Roth 401(k). I know enough not to leave free money on the table lol
My question is essentially whether I should contribute more into this 401k or if I should open a Roth IRA. My problem with the company 401k program is that the fund choices are very limited. It is essentially just Target Date funds, a large cap, and a small to mid cap. All of which have never beat the S&P by any measure of time, and are too conservative for someone as young as me. Whereas a Roth IRA, I could choose index funds that have a better track record, and invest more in equities.
Would I be dumb to split my money between two different retirement accounts?? Or should I drain my savings and knock out the car loan? Dave Ramsey seems to feel very strongly about knocking out debt first, but the money invested in my 20's is so so valuable for retirement.
SO BASICALLY (sorry so long) I want to start investing about $500 a month. 401k, IRA, or tackle debt?? THANK YOU!!!
Submitted July 31, 2019 at 10:30PM by OneMediumLargePizza https://ift.tt/2YiwRqE
