[USER]

How do I go about speaking with a financial advisor? I just graduated and started my big girl job.

I need more information on whether I should start putting into a 401k or Roth IRA, and how much.

Which will give the greatest return?

[Julie]

Dave Ramsey says that match beats ROTH beats traditional. So, if your company does a match into a 401k, then that is your best option.

If not, a ROTH is better than a traditional.

[Molly]

I would ask friends and family if they have and financial advisors they trust.

I personally would not go through a bank once you start earning more money, but for just getting started where you are, they’re ok.

The problem is that they will only suggest to your their banks products, which may not be the best options.

For example, a High Yield Savings account with an online bank won’t give them any profit, so they won’t mention it although you’ll earn more on that than a traditional savings account through them and more benefits than a CD through them.

[Meg]

If you can, find a fiduciary financial advisor. They are supposed to act in your best interest.

Many financial advisors will put their personal gain over yours.

Don’t let anyone talk you into an insurance product (annuity) as a retirement vehicle.

They are loaded with hidden fees.

[Katie]

Your job should have a rep available. Generally, if you can do a Roth, that’s the best option because you won’t pay taxes when you take it out in retirement.

I’ve never had a Roth option and just put my money in the company sponsored 401K

[Lyon]

There’s a saying. Pay yourself first. It means start investing in your retirement whether is 401K or Roth IRA.

For me it has been traditional and my average return in the last 20 years has been 10-12%.

Traditional 401K is good because you can max out to $23K and this amount is tax differed but when you withdraw you pay taxes on this as income.

Roth IRA max out with ar 7000 is pre-tax but when you withdraw you don’t pay taxes on it for 2024.

Start with 10% or more if you can afford it.

I also set aside 10% or more in savings for emergencies. Car breakdown etc.

I diversified by investing in real estate and stocks.

Now I draw pension from government and income from rental properties.

I’m not old enough to get social security and raid my 401K (you can start withdrawing at 59.5 years old.).

I’m financially independent now and don’t work except putter around the garden.

[Tawney]

Roth. Not only will you not pay taxes on it at retirement, but it will help keep you in a lower tax bracket when retired.

[Laura]

Get advice from several qualified financial advisors, and then make your decisions.

Not just with one.

[Amanda]

With a Roth IRA you pay taxes when you put money into it. Not when you start collecting on it.

I have one with Fidelity.

If you ever have kids you can start one with Fidelity for your kids.

[Donna]

You need a Roth 1st. Pick a well known mutual fund , ie Vanguard or Fidelity.

They have a whole family of funds to choose from, no matter if it a Roth or a traditional 401k.

If your employer has matching funds start there.

[Jean]

Congratulations on the job! The brokerage your company uses probably has someone you can call to help open the accounts.

They can answer questions.

Your asking about the types of accounts.

Generally the advice is matched contribution which typically is the 401k. 401k money isn’t taxed going in (excluded from taxable income on tax return) but it and the earnings will be taxed coming out.

Roth is post tax, so it counts in taxable income on your income tax. But it’s growth won’t be taxed.

Try to at least max the match and then as much as you can after that in Roth.

If you have debt, pay that down first.

It’s all about rates on your money.

For example if your paying 18% interest on something pay that first. Before you worry about growing saved $.

Second get an emergency fund to cover your expenses for up to 6 months.

Third increase the amount invested with each pay raise, if you get 3%, increase 1% invested.

You mention greatest return. Well that is a choice you make of what to invest in within the type of account.

A lot of companies have target date funds based on your expected retirement.

If I had to do it again, I wouldn’t do that.

It’s too conservative when you’re young.

I tell my adult kids to invest in an S&P etf.

401ks have limited offerings.

Ask what is available and do a little research.

You can change which account your money goes to and what investment so you don’t have to have all the answers to start.

Get started and best of luck to you.

[Candee]

Does your job offer a retirement plan? Talk to your benefits person if you have one.

[Lisa]

Chase bank has brokerage accounts you can open with a small amount of money and they have financial advisors who are well versed in things besides CDs.

[William]

Start by buying a couple of finance books and giving yourself a basic understanding.

You’re going to get all kinds of opinions here.

I’ve already seen some that aren’t great.

[Monica]

I’d do a Roth IRA or Roth 401k if you can. As you pay the taxes now. I would also deposit aggressively while you’re young if you are able to.

As the older you get it seems the more bills you have.

See if your job offers one first.

[Tommy]

Your job should provide the contact info for the wealth management company they use.

[Ally]

We use Facet wealth. There’s an annual fee, but if you invest through them there are no additional fees, which we’ve found to be worthwhile.

[Jacque]

We use Edward Jones for our financial services. I am secretary for the fire department and they use them for their financial assistance and so does our city council.

The VFD and City both utilize Edward Jones services to buy cd’s for building capital and 401k’s for employees, we have ROTH.

[Nichole]

We just went through this process. You only want a fiduciary and either one you choose will be good for compounding at your age.

My suggestion would be do both, especially if your work matches your 401k.

Some work places offer IRS’s and 401’s.

If you can split.

The biggest difference is the limits.

On what you can put into an IRA -which is after tax contributions and you can dip into it anytime as an emergency fund.

401k you will pay taxes once you retire.

The gamble is what percentage of taxes you will pay when that happens.

Good luck! Spend time interviewing all your options

[Cathi]

Some ccompanies will match a percentage of employee contribution to 401(k).

If your budget permits, max out your employee contribution.

Employer contribution/ match is a great benefit and once fully vested, is all yours.

[Melissa]

Ask friends and family who they use. After you have your emergency fund start a ROTH with direct deposits.

You may be able to set that up through your bank.

[MiMi]

Most banks have a finiancial advisor in house that help.

[Jim]

Both. You should try to put away 15% of your income into retirement funds.

That includes the employer contribution if there is one.

Contribute enough in the 401k to get the employer match.

Then put the rest in the Roth to get up to the 15% goal.

Invest at least 80% in stocks until you reach about age 50.

[Susan]

Both. But max out Roth asap unless you get a match for the 401 from your employer.

Know that befor u talk w/ adviser! Check books out from library

[Mari]

I personally would not go through a bank. I interviewed people and did research on each company.

Be sure to also consult people around you and how they are investing.

[Author]

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