[USER]

Looking for some advice for investing and whether my husband and I should contribute to our companies 401k.

Some info:
F(20)M(21)
Full time workers, Full time college students.
We don’t qualify for aid, paying out of pocket not taking loans, trying to find scholarships.

M(21) is in a program to be an Airplane Mechanic. Will finish this June. Starting wage out of program is around $40.

F(20) Majoring in Accounting. 3&1/2 years left, hoping to expedite as much as possible just went back to college this past month.

Occupations
F(20) – Billing Clerk
M(21) – Aviation Mechanics helper
Gross: 95,880
Net: 66,966

Debt: Car loan – 19,450 – 7.74% – Aggressively paying off.
Emergency fund – ~12k (in a HYSA)

Monthly expenses(HCOL)- ~2,700 (including car payment of $350 which we hope to pay off within 2 years)

We both started new jobs in August and the companies are offering 401k.

F(20) – Company offers 3% match. 50% vested after 1 years, 100% after 2 years.

M(21) – Company doesn’t offer a match. And will likely switch to part time and get a new full time job come graduation.

Any advice as to if we should contribute to the 401k’s? Or if we should do ROTH IRA’s since we may switch jobs come graduation dates?

Any other advice money wise? We share all income and have joint accounts if that helps.

[Chris]

Roth (married I assume) and try to put in the minimum 3% match. Keep the monthly drains on “wants” (especially the subscriptions, eating out, etc.) down as much as you can.

You should be in a better place 5-7 years out but keep the good habits for 20-25 years and it will pay off.

[Kathy]

Definitely take the match if planning to be there 1 year. I would open Roth IRA with fidelity or Schwab and contribute up to 7k to be fully funded

[Scott]

Since your income is low compared to what it will be, do the roth401k up to match. It’s free money.

Once you have higher income jobs you may want to switch to a traditional 401k up to match and then put more into a personal Roth.

Once you have the roth401k for 5 years, you can pull your+ the employer contribution out for a house without tax implications

[David]

401k to match then the rest in roth accounts.
College major wise, make sure accounting is something you want to do.

If it were me, and I could go back in time, I would have double majored in accounting and finance.

[Author]

Posts