Hello, everyone.
-34 years old
-Single
-$7k in Credit Card debt (planning on paying it off in the next 2months)
-No other bills
-I've been mainly working at our little family restaurant most of my life and a side job as a medical assistance at a local hospital for the last 12 years.
-I will starting a new career as a Surgical Tech at the very same hospital I've been working at for the last 12 years and will be starting off at annual salary is $50,000 ($3,750) pre tax, . So roughly a measly $1500/2weeks
-I'm finally at the point in my life (yes, I know it's really late! lol) where I'm almost debt free and just now started to think about planning my retirement and getting my finances in order. I'm ashamed to say I've never even paid attention to "retirement" "401k" "savings" I've always just brushed it off when I heard those words :(
-I currently only have about 20K VESTED in my 401k and currently only contributing 4% into my 401K
-I was reading over my 401K Summary Plan and this is what it says about "matching"
"matching contribution equal to a uniform percentage of your elective deferrals (pretax and/or Roth after-tax) as follows: An employer matching contribution equal to 100% of your elective deferrals up to 1% of eligible Compensation you contribute; An employer matching contribution equal to 50% of the next 5% of eligible Compensation you contribute. Your employer matching contribution will be made on a per-payroll basis. The maximum amount of employer matching contributions in any plan year shall not exceed 3.5% of your eligible compensation. "
Do you guys have any advice for me as to get me started on the right path? I've read the best suggestion is to max out on the 401k and then put the rest in a ROTH IRA?
Judging from my plan summary, should I put 6% into my 401K for the employer to match and then the rest in a ROTH IRA? Thank you for the time to help me!!!
Submitted September 08, 2019 at 07:35PM by lilkhmerkid4u https://ift.tt/2HRLyH6
