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I’m 22 years old and want to start a retirement plan, where should I go?
By Tom Dunn | April 26, 2007
Questions21Answers asked:
I’m 22 years old, I’m employed but my company doesn’t start matching my retirement money until after 2 years. I want to get started on my retirement investments asap but not sure where to go? The market is down, I want to get in now before the economy starts to rebound. Any suggestions?
Jill
I’m 22 years old, I’m employed but my company doesn’t start matching my retirement money until after 2 years. I want to get started on my retirement investments asap but not sure where to go? The market is down, I want to get in now before the economy starts to rebound. Any suggestions?
Jill
Topics: retirement planning |
April 29th, 2007 at 9:10 am
state farm. they do retirement plans
April 30th, 2007 at 5:13 am
After losing tons of money on a 401K years ago, I put my money into a CD, or you can put your money into several CD’s. They are very safe!
April 30th, 2007 at 7:20 am
Financial adviser can help.
May 5th, 2007 at 5:32 pm
Look around, everybody is finding their mattress better for saving their money than any retirement plan.
May 5th, 2007 at 7:34 pm
keep it in an empty biscuit tin under ur bed best way to do it
May 5th, 2007 at 9:23 pm
I went to Charles Schwab when I was about your age. I’ve been with them now for over 20 years and am completely satisfied. You can invest in almost anything in one of their IRA accounts.
May 7th, 2007 at 9:34 pm
An annuity with least a Double A rating
May 9th, 2007 at 6:28 am
If you’re in Canada, get in on an RRSP. If you’re in the States, I think it’s a 401k. Basically set up a retirement savings plan with your bank. They usually go as small as 50 bucks per month. In addition, RRSPs are tax exempt, and if you don’t pay the maximum amount each month, it carries over. That way, if you suddenly get a bunch of cash that the government is going to take from you in taxes, you can dump a lot of it in your RRSP if you haven’t been paying the full amount.
May 10th, 2007 at 7:09 am
you can begin to buy securities and most such brokerages have
monthly investment plans/programs.
Also, you can consider finding others with small amounts to
invest and create a small venture capital firm to
invest in small firms in your area; the returns are
humongous!
I can guide you
May 13th, 2007 at 1:55 am
As a just turned pensioner I would suggest forgetting a pension fund at moment. You don’t say where you are but if in Uk I would sugest putting any spare money into a safe Isa with building society. If the past is anything to go by you can put £1000’s into a pension fund, during your working life only to find it is worth very little when you eventually retire. Two points to consider 1) if you put into a pension fund and then (hopefully it doesn’t happen) you do not live long enough to draw it the money is lost, unless you have tied it up to who should receive it after your death and it may not be the full amount you put in.
2) If you put into a savings pot such as an isa the capital will always be there and you can put it into a pension fund later, when the market has settled if you want.
Finally think, at your age, if you put the Isa amount of £3600 (it is at mo) per year into an isa you will have a substantial sum by the time you retire. I built up a pension plan, over 20 years of my working life, and I now get about £20 per week. Wish you luck for the future.
May 14th, 2007 at 7:48 am
still use your work plans if they have low fees and several choices. It will be much easier having it deducted from your paycheck automatically, than having to cut a check each month or having the money come out of a bank account - if you are short you may end up paying overdraft charges.
after that
And, lastly remember paying off credit card debt, student loans and auto loans probably has more bang for your buck.
May 17th, 2007 at 8:29 am
It’s great that you are getting such an early start — you are going to be so glad you did later!
Mutual funds or index funds are probably a good idea. The big thing to watch out for are fees. Those can really eat away at your investments. The idea behind fees is that your money is more carefully “watched”, but the charge for this service, over the long haul, probably doesn’t really pay out. Here are some discount brokers you might want to take a look at:
us.etrade.com/
I’ve put links below to articles about management fees, as well as about discount brokers.
Good luck!