Adding on to what Jwrussell has already said...
Or look at it this way ... what is your current savings strategy? A can buried in the back yard? "Managing" your checking account and leaving a few dollars left over each month? Sure you aren't "losing" anything to a falling market, but you aren't building anything either. (See the link above I posted about compound interest).
START NOW!!!!!!!! Since your company offers a 401k there is no doubt there is some financial guidance that comes along with it (through the company handling your account). Talk to them! It is more than likely free. More than likely they are going to put your funds into a long term growth fund (read...big companies not going anywhere, they grow slow, but they grow!). Retirement goals are more like a marathon and not a 100 yard dash.Im 28.
My company offers a 401k. They 100% match my contribution up to 5%.
Just like Jwrussell said ... take advantage! What is your fully vested date? The answer to that question may influence your decision to stay or leave the company at some point in the future.My company offers a 401k. They 100% match my contribution up to 5%.
Read above...marathon vs. 100 yard dash. Also, everyones definition of "a crap load" is a lot different. A crap load to one guy could be $500 and $50,000 to another. Don't let them scare you.But man the guys that had a lot of $ in there in 2008 lost a crap load.
Or look at it this way ... what is your current savings strategy? A can buried in the back yard? "Managing" your checking account and leaving a few dollars left over each month? Sure you aren't "losing" anything to a falling market, but you aren't building anything either. (See the link above I posted about compound interest).
See above about talking to a financial advisor provided by whom ever is providing account services for your employer. A Roth IRA allows your money to grow tax free since it is POST TAX dollars. This is w/o a doubt the best investment a guy make outside of automatic weapons (seriously! their value has increased 10 fold in the last 10 - 12 years). Your money grows tax free since you have already paid taxes on the money put in to it. However, you need a solid strategy that meets YOUR long term financial goals. As a young man I'd be investing the max allowed in each ... even if it means cutting back on luxury items you enjoy now (not fully, but within reason).Is a Roth IRA less fluctuating the a 401k?
See above again. We are not privy to your personal financial position. This is best discussed with a professional. Be very frank with them about where you are and where you wish to be. Have them explain the risk vs. reward. Also have them explain the nomenclature of the industry. If you don't understand what they are telling you ask them to. If they do not ... leave or ask for someone else (in their firm) to explain it to you.That's kind of my big question. What's the best way to contribute my $?