401k vs 403b
- Thread starter supton
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1) read as much as you can. Start here: http://www.bogleheads.org/wiki/Getting_Started
2) I wouldn't ask for oil advice on an investing forum, so when you do have specific questions and need advice, ask on the bogleheads forum. They will give great advice, but only once you've presented them with complete info (look at how they want portfolio questions formatted).
3) as mentioned by a few people (but not often enough), low-cost index funds. Set an Asset Allocation that works for you. Look into the 3 fund / lazy / similar portfolios - easy to setup and maintain or target date funds if available for low cost in your plans.
4) DO WHATEVER IT TAKES to get your max 401k match!!! This is free money you are throwing away if you do not. Then depending on your fund choices and fees, you may want to max a Roth before maxing out the 401k totally.
Roth contributions can be withdrawn in the same year for no penalty. This can also serve as an emergency fund.
Start early and use compounding to help you reach your retirement goals.
2) I wouldn't ask for oil advice on an investing forum, so when you do have specific questions and need advice, ask on the bogleheads forum. They will give great advice, but only once you've presented them with complete info (look at how they want portfolio questions formatted).
3) as mentioned by a few people (but not often enough), low-cost index funds. Set an Asset Allocation that works for you. Look into the 3 fund / lazy / similar portfolios - easy to setup and maintain or target date funds if available for low cost in your plans.
4) DO WHATEVER IT TAKES to get your max 401k match!!! This is free money you are throwing away if you do not. Then depending on your fund choices and fees, you may want to max a Roth before maxing out the 401k totally.
Roth contributions can be withdrawn in the same year for no penalty. This can also serve as an emergency fund.
Start early and use compounding to help you reach your retirement goals.
1. Still doing reading. Lots of that left to do.
2. I'm just starting to get enough info now to figure out what questions to be asking. But I should probably figure out a few more facts (and questions) before I go posting on that forum.
3. Index funds, have to look into. I don't think I am invested in those. Not at a point where I understand how my 401k is invested, nor where it should be, let alone how to muck with it.
4. Done, and gone slightly over, so getting all the "free" money being offered to me.
5. The Roth, that I don't know about, I would start one if I could withdraw from it (after any initial waiting period) for any reason at all (college, car, medical, wedding). A little ways from opening one of those though.
A few more details to figure out, then sketch out the plan, then simply have to stick to it for a few decades. For what I can see, with some reasonable goals I can retire by 70.
2. I'm just starting to get enough info now to figure out what questions to be asking. But I should probably figure out a few more facts (and questions) before I go posting on that forum.
3. Index funds, have to look into. I don't think I am invested in those. Not at a point where I understand how my 401k is invested, nor where it should be, let alone how to muck with it.
4. Done, and gone slightly over, so getting all the "free" money being offered to me.
5. The Roth, that I don't know about, I would start one if I could withdraw from it (after any initial waiting period) for any reason at all (college, car, medical, wedding). A little ways from opening one of those though.
A few more details to figure out, then sketch out the plan, then simply have to stick to it for a few decades. For what I can see, with some reasonable goals I can retire by 70.
Great to hear that you're getting the match completely already.
Save, save, save and live BELOW your means. Some good reading on bogleheads forum about savings rate. Yes there is some skewing by people who make a good living and have the ability to save more, but there are also those who manage to retire early with modest pay.
Basically you can think that for every $1 dollar you save now, it provides $2 in retirement - how's that you ask? Well, you have that dollar plus its interest available in retirement, plus you are not spending that dollar right now to live. By living a simpler, more frugal lifestyle, you do not have to save as much for retirement or spend as much in retirement to keep your same standard of living. $1 -> $2
I realized that by not spending more on renting a nicer/larger place and buying a new car, I could keep my same standard of living I've had the last few years and start contributing more towards retirement with each pay increase. I am single w/o kids, though.
It is a philosophy/lifestyle. I wish I had started really contributing to retirement in my 20s, but can easily make up for it if I keep my savings rate high in my early 30s.
Save, save, save and live BELOW your means. Some good reading on bogleheads forum about savings rate. Yes there is some skewing by people who make a good living and have the ability to save more, but there are also those who manage to retire early with modest pay.
Basically you can think that for every $1 dollar you save now, it provides $2 in retirement - how's that you ask? Well, you have that dollar plus its interest available in retirement, plus you are not spending that dollar right now to live. By living a simpler, more frugal lifestyle, you do not have to save as much for retirement or spend as much in retirement to keep your same standard of living. $1 -> $2
I realized that by not spending more on renting a nicer/larger place and buying a new car, I could keep my same standard of living I've had the last few years and start contributing more towards retirement with each pay increase. I am single w/o kids, though.
It is a philosophy/lifestyle. I wish I had started really contributing to retirement in my 20s, but can easily make up for it if I keep my savings rate high in my early 30s.
Yeah, I've come to the conclusion that, due to prior decisions and future plans, early retirement is out. Call it a collision of goals: I wanted to start a family early enough so as to have a chance to see my great-grandkids, yet live a "comfortable" life. Now I'm suddenly tacking on actually having money in retirement, that's a sudden change--but I can't undo the past.
I wish I could say I'm over the new car thing, but I fear that, in 3 years when I've got the current vehicles paid off, I'll want to buy something half-way decent to replace the Jetta--and I won't have enough saved up for that. Deal with that when the time comes. Ideally I'd get a beater but for various reasons I don't see that happening. Worse is housing, we're pretty convinced that we're moving in 5 years. I have some (small) hope that I can limit the amount I have to pay for that. Frugality is rather hard, at 52kmiles/year annual milage and living where we do.
Right now I'm trying to limit what I talk to my wife about, so I don't push her into going back to work--prior goals had her as a stay at home mom, which has a few more years to go. Once she goes back though I have high hopes...
I wish I could say I'm over the new car thing, but I fear that, in 3 years when I've got the current vehicles paid off, I'll want to buy something half-way decent to replace the Jetta--and I won't have enough saved up for that. Deal with that when the time comes. Ideally I'd get a beater but for various reasons I don't see that happening. Worse is housing, we're pretty convinced that we're moving in 5 years. I have some (small) hope that I can limit the amount I have to pay for that. Frugality is rather hard, at 52kmiles/year annual milage and living where we do.
Right now I'm trying to limit what I talk to my wife about, so I don't push her into going back to work--prior goals had her as a stay at home mom, which has a few more years to go. Once she goes back though I have high hopes...
Not saying any one philosophy is best but I decided coming out of college I wanted to retire before I turn 60. From crunching all the numbers, I kept coming to 15%. If started putting 15% of my pay into my 401k from my first day of the real world, I think it would work out. The nice thing about it since I have always done it, I never miss that money and with every raise I get to put more back. It is working great so far.
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