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grokfinance t1_iyat189 wrote

Reply to comment by HeWhoIsVeryGullible in Investing Resource Recommendations by HeWhoIsVeryGullible

Yes, you should have both. General advice is to contribute enough to the 401k to receive the maximum amount your employer matches since that is free 100% return on your money. Then, max out a Roth IRA. If you can afford to contribute more money for retirement then contribute more to the 401k up to the max. The more money you get invested at the youngest age possible the better so your money has longer to compound and grow. At 21 years old, every $1 you invest for retirement now should grow to something like $20-25 over the next 40 years. Wait 5 years to start saving and every $1 will only grow to about $15.

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HeWhoIsVeryGullible OP t1_iyatf1b wrote

Thank you for your help! Are there any tips you've recieved that have helped you with investing?

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grokfinance t1_iyatn20 wrote

The ones I have already given you. Passive index funds. Keep the expense ratio low. Avoid annuities. Avoid whole life, variable life or universal life insurance. Avoid "advisors" that work for insurance companies and banks. Read the links I provided. Those will provide good education.

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