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With your companies 401k or equivalent. Just put whatever percentage you want into a low cost, broad index fund. The most important part is to make this allocat
by spinlock 12y ago
With your companies 401k or equivalent. Just put whatever percentage you want into a low cost, broad index fund. The most important part is to make this allocation before your paycheck gets cut (i.e. you never see the money).
- aepearson 12y agoWhat about someone like me with no 401k?
- kasey_junk 12y agoIRA or equivalent. If you have no option for a tax advantaged account, the advice to pick a broad unmanaged index fund or etf still holds.
- melvinmt 12y ago> you never see the money Also important to add, if you invest with 401k/IRA money, if you don't want to pay a lot of taxes or early withdrawal fees, you won't "see" the money until you retire.
- yummyfajitas 12y agoAlso make sure to change jobs every few years so you can move money from the 401k to an IRA without a tax hit. 401k's tend to suck - high fees, low returns, little competition. Most of the funds in your 401k are there because a fund salesman took an HR person out to a steak dinner. When you change jobs, always move the 401k into an IRA and put the money into low cost ETFs.
- cdjk 12y agoUnless you have enough income to be over the Roth IRA contribution limits and want to make yearly backdoor Roth IRA contributions (non-deductible traditional contribution followed by a rollover to a Roth IRA). If you have a traditional IRA there can be some tax complications due to the pro-rata rule. If any traditional contributions are instead in a 401k the conversion is a lot simpler, and tax-free. The other way around it is to open an individual 401k if you have any self-employment income, but that involves a bit more paperwork than an IRA.