I’m 23 and starting my first job. I will be making a salary of $45K. Which do I invest first? Roth IRA, SEP IRA, or 401k? Also IUL, I don’t have any debt or payments.

Submitted by Most-Construction412 t3_yie6cc in personalfinance

I live with my boyfriend and his dad. He doesn’t charge us rent but we buy food and cook it for him and clean. My boyfriend makes decent money but he issues a lot of it for his truck as a tax write off. He makes more then me so most of my money will be going into these accounts. That’s the main reason for this job. Which accounts should I start? Can I invest in IRA’s and 401k and possibly a IUL account? I know it’s life insurance but from what I know you can pull it out tax free with compounding interest. Thank you in advance!

0

Comments

You must log in or register to comment.

CafeEtKouignAmanns t1_iui5zp6 wrote

Depends on what your future earning potential looks like. 401k reduces taxable income, but Roth IRA is post-tax, so it's good to invest in that now while you're in a lower tax bracket if you think you'll move up into higher brackets throughout your career.

2

cholley_doo2 t1_iui5h4v wrote

401k as it will reduce your taxable income .

"Can I invest in IRA’s" IRA or 401 is just the account type, you need to allocate what to invest in from there.

absolutely open a Roth on the side for money you might come into outside of work

1