I am 21 years old and just recently graduated from a 4-year college with no debt I have around $10,000 saved up. I plan to live with my family until I'm 22 or 23 years old. I have no expenses while living at home. I got a job that makes $53,000 annually. The company I am working for has a 401(k) and will match it to 5%. (I don't know the correct terminology)
I want to retire early. I am planning to max out my 401(k) and contribute $19,000 a year. I am also thinking about opening a Roth IRA and maxing that out; $6,000.
My questions:
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Am I allowed to max both the 401(k) and the Roth IRA; putting in $25,000 annually? Is this a good idea? Are there any risks? Is $25,000 too much; should I put in less?
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If I decide to retire early and want to use some money out of either the Roth IRA or 401(k), how do I do that? Are there any fees or penalties? For example, I retire at 45 years old and want to take out $5,000. What would happen in this situation to my two accounts?
TLDR: I want to make enough money so I can leave my day job and pursue something I am passionate about without feeling the financial burden. I understand best by reading examples of hypothetical scenarios.
Also, feel free to give me any advice/ tips on money management. Any tip is a good tip, I'm a newbie and I appreciate all the help I can get!
Submitted September 30, 2019 at 10:36PM by robot29 https://ift.tt/2o5kRYk
