Hi!
My employer just offered me 401k but he doesnt match a penny.
Should I put some money here or get a Roth IRA?
Also, how can I open the Roth IRA?
Thank you !
I would skip the 401k and go first to the Roth IRA. If you have more to invest past the limit, then go back to the 401k. It breaks it down in this post:
To open a Roth IRA, head to Vanguard, Fidelity, Schwab, Betterment or the brokerage of your choice, click “Open Account”, choose Roth IRA and follow the steps. Don’t forget to invest the money inside of your Roth IRA! This post breaks it down:
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Hi Jeremy, thank you for your reply.
I went to look at the guidelines for Roth IRA and I dont qualify with this income limits (married filing jointly), so should I go back to the regular 401k to the max right?
(According to your image above)
My other question is… I took a 10y loan of 35k for a repair in my house, at 7.99%
If I have the money now to pay it off. Should I do it or invest ?
Thank you so much for your time.
Absolutely pay off the loan right away. That’s a crazy high rate, plus I pay off all debt before investing.
I prioritize my money based on the phases of investing:
And yeah, you can just skip the IRA step, or you can look into a backdoor Roth IRA. At your income level, it’s probably worth running this stuff by a CPA .
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