I finally got a good job at age 22 and am looking into savings plans. What are good plans for like 10 years and post retirement? Anyone have advice? Im looking at investing roughly 200 dollars a month for now because of all my loans.

 

  • Cisco 1:02 pm on February 9, 2010 Permalink

    Here are a few suggestions:
    1) If your company has a 401K, begin to contribute, at a minimum up to the % which the company matches. If they don’t offer a 401K then open an IRA and begin automatic drafts monthly

    2) Begin to automatically set aside money into a savings account or money market account to set up an emergency fund of about 3-6 months of your expenses

    3) If you have any left over after #1 and #2, then put that aside into an account you have easy access to and this can be for short-term items

    You’re on the right track by think of this early on.

    One thing not mentioned was any outstanding debt, if you do have debt then you should also focus on reducing this as quick as possible.

  • Jorgie_Porgie 1:03 pm on February 9, 2010 Permalink

    401K plan that works the best

  • Curious 1:03 pm on February 9, 2010 Permalink

    Talk to someone at your bank. The best thing probably to do is to get a certain amount every month (you suggested $200) taken directly out of your bank account and sent to an investment account or some retirement savings plan. Determine with a financial advisor or customer service person at your bank what your risk tolerance is, and what you would like to do with the money eventually – you will make different choices if you are looking at a 5 yr time horizon or a 30 yr time horizon.

    But do contact someone at your bank as a first step. Also, check with your employer to see if they have any systems set up with retirement savings programs, group investments, etc, that you can tap into. Often, these have advantageous rates due to the group nature.

    And congrats on the job!

  • j2008 1:03 pm on February 9, 2010 Permalink

    1. do not waste money in things that you do not need
    2.(maybe stupid)but if there are pennies on the floor or cents just collect them and then change them for cash.
    3.if there any change when you go shopping for groceries save it and then change the change for cash

  • gamerwench 1:03 pm on February 9, 2010 Permalink

    Talk to a financial adviser at your bank or at an investment company. They can set up an IRA or invest the money for you. If you are based in the US check to see if your employer offers a 401(K) plan, invest in that.

  • Maple S 1:03 pm on February 9, 2010 Permalink

    The best way is to find a time savings account that gives 4% interest then deposit $6 per week. In 20 years you’ll have saved about $50,000