If I work at a small company that does not offer 401(k), what is a good general approach to investing/retiring as a 25 year old?
Currently since I am not contributing to a 401k I make monthly contributions to a Roth IRA and student loans, but I wonder if down the road I should consider a taxable brokerage account (possibly Wealthfront or similar).
Answers | 5
Beware of high pressure life insurance salespeople masquerading as financial advisors. And you should consider investing in your 401k before investing in a brokerage account. There is some great tax savings from doing so.
I do caution those who have read Patrick Kelly's book that his use of the term
Tax-Free is potentially hazardous. The income that comes as untaxed distributions can result in significant taxes if the policies expire before the insured. Had I titled his book I would have called it "Untaxed Income.'
If you are considering a taxable account due to maximizing your ROTH IRA, why not set up a self directed ROTH 401(k) with an employer match. In 2015, the contributions are the smaller of $18,000 or 100% of participants taxable income + $6,000 if over 50.. A Simple 401K is $12000 + $2,500 if over 50.
Also, grow your retirement plan at your MARR- Minimum Acceptable Rate of Return or higher. We can help you determine this. Just give us a call to discuss your situation in greater detail. No obligation. My job is to eliminate risk and demand your satisfaction. So, let's get you where you need to be and keep you there.
It's not what you make, It;s what you keep that determines your lifestyle