Hi I am 23 and I just started my first job out of college making about 50k a year. I've saved up enough for a 3-month emergency fund and I dont have much student debt. My company only matches 401k contributions to those who have been with the company 1 year so I didnt really look into it.
My original game plan was to open up a Roth IRA because I figure the amount im making now is going to be less than the returns when I retire. I was going to use vanguard because they have some pretty low rates on index funds.
After talking with a family friend who has lots of experience in the field he did bring some things to my attention that I wanted a second opinion about.
1.) He was convinced that I should be investing in a Traditional IRA and not a Roth IRA because I would make much more even after taxes if I invested a lot at my age now.
2.) He suggested I still take a look at the 401k my company offers because it could still be pretty good and maybe some administration fees would be covered by the company.
3.) He suggested I look into mutual funds because in his opinion they perform better and recover better from recessions because they are faster to react to changes in the market and hold a percentage of their funds to invest at the right times.
4.) I'm half considering investing about $200 in a traditional, $200 in a roth, and maybe increasing my savings by $50 a month to try to time the market . But I have a feeling this strategy is not a good one lol
Thanks in advance, I really appreciate the time it takes to read this post and respond!
Submitted September 04, 2018 at 01:00AM by whaleater69 https://ift.tt/2oBKqx9
