Help me start saving for retirement (U.S.)
February 20, 2014 8:08 AM Subscribe
I would like to finally start saving for retirement! I'm thinking a Roth IRA is the way to go (unless you think otherwise and can tell me why), but I am a little confused/overwhelmed with how to proceed. A few snowflakes inside.
posted by likeatoaster to Work & Money (13 answers total) 40 users marked this as a favorite
I am in my late 20s. I don't have a tremendous amount of savings, so I'm not sure I can swing a large lump sum to open an account--although I could be persuaded if necessary--but I am making a regular salary that would allow me to make regular smaller payments into some kind of retirement fund, at least for a little while. I also have a lot of student debt, and although I am starting to get a handle on managing that, making even a significant dent in it before thinking about retirement savings is not going to be a feasible option for me.
I don't know anything about investing, and frankly my preliminary investigation into the issue makes my head swim. I would like something that I do not need to worry about or actively manage, but something that is a good deal, and I am (maybe irrationally?) wary of trusting people whose job it is to sell me this plan or that. I would prefer something that does not charge me fees to add money to it every few months. I hope to someday have a job that will have a built in retirement account (like a 401k) so I am also interested in hearing about how a separate IRA account can be managed alongside an employer-based plan, or merged with, or whatever makes the most sense.
If y'all could break down for me, in the simple possible terms, how to best proceed, I would appreciate it. I am willing to talk to a financial advisor, but would prefer to just handle it myself if possible. Any advice on selecting an account, what factors I may want to consider in determining how aggressive my retirement investment should be, what I should think about in determining the size of my contributions to it, and what to do about an IRA if I do end up eventually getting a job with a built in 401k would be greatly appreciated. Is this something that I could trust my local credit union to be straightforward about? If I did go through a local credit union but ended up moving later, would that cause complications?
I have searched previous questions, and I have found them rather overwhelming and/or inapplicable, so any advice you can give would be much appreciated. Thank you so very much.