I came across this excellent article
http://www.theatlantic.com/business/print/2011/12/saving-the...in The Atlantic via My Money Blog. For anyone trying to save, particularly for their retirement, it's both a warning and an inspiration.It's the kind of story I could see myself bookmarking and reading later, when I need a kick in the pants.
http://www.theatlantic.com/business/print/2011/12/saving-the-new-year/250554/
January 17th, 2012 at 02:20 pm 1326810027
January 17th, 2012 at 04:08 pm 1326816531
I know my own approach is often written off as way ultra conservative and "crazy," in this day and age, but I've often said I know a lot of "millionaire next door" types and they seem to be the only ones not really struggling right now. So, stocks aren't magic, I believe in a year emergency fund, for sure, and think mortgages should be paid off (not kept forever). Plus, my family has a tendency to live long, so I have always been on the conservative side with retirement, realizing we might be retired for many decades. These were all points mentioned in the article.
January 17th, 2012 at 05:42 pm 1326822151
January 17th, 2012 at 06:05 pm 1326823504
January 17th, 2012 at 06:23 pm 1326824587
Or do both! But don't let indecision cause you to delay any longer. You can always increase the contribution to the Fidelity Freedom account and then transfer it to a new fund within your 401k later after you've had time to mull over your options.
If you don't really like the fund options your employer offers, then go the route of the roth IRA. There are lots of calculators/articles on whether a regular or Roth IRA are better, but personally, I think the vast majority of people are better off with a Roth, becus you contribute after-tax dollars and your contributions are tax-free. Taxes, i feel, are only going to go up,not down, so it makes sense to go with something where you don't have to worry what the tax rate's going to be 30 years from now when you take your contributions.
January 18th, 2012 at 02:21 am 1326853301
The final point that I didn't read in the article is that most people use the match as an anchor. (eg maximize your contributions to get the match gets interpreted as contribute up to the match and that's maximal.) Guarantees you will undersave.
to scrappy tappy - second what patientsaver said. I might go with the Roth because you have flexibility, you put the dollars in after tax and you can take out what you put in (but only what you put it!) at nearly any time so it can double as an emergency fund - and its great to have taxable savings, tax deferred savings, and tax free savings. If you are first starting w/Roth, remember that you can get a twofer - you can finish contributing to 2011 (deadline is April) and you can contribute to 2012.
January 18th, 2012 at 05:47 am 1326865665
January 18th, 2012 at 01:12 pm 1326892359
January 18th, 2012 at 02:25 pm 1326896731
January 18th, 2012 at 03:41 pm 1326901272
January 18th, 2012 at 04:21 pm 1326903664
Scrappy Tappy, congrats!