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ciaofiore

New Potential Investor.. Looking For Suggestions

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Hello---

I just turned 26, in my first year of public education in NJ. A sales rep from AXA came to the school. I was not very comfortable with it all, but at least it made me start considering my savings.

 

I decided to do some research about retirement funds, etc. I am so glad I found this site. I have read through most of the forums to see if anyone had the same questions as I did. I know more now than I did before, thank you.

 

I am still a little confused about whether to start a 403b at this time. Roth IRA? What would you do? I am recently married, have some student loans, so I cannot save too much monthly.

 

My school has the following providers:

 

AXA Equitable

Lincoln Investment Planning, INc.

Lincoln Financial Group

Citistreet Retirement Services Divisiion/MetLife

THe Variable Annuity Life Insurance Company

Fidelity Investments

 

From what I have read, it sounds like Fidelity is the way to go, but I am also starting to think that a 403b might not be the best option.

 

Anyway, I just wanted to invite any suggestions, here what others would do in this situation. Where do I begin with it all?

 

Thanks!

 

Marie

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Since it sounds like you won't be starting with a large amount of contributions, putting your money in a Roth IRA may be the best way to go. You can contribute as much as $4,000 per year.

 

Because of your age, you will probably end up having even more income after retirement than you do now.

 

Hope that's a good start for you!

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Hello---

I just turned 26, in my first year of public education in NJ. A sales rep from AXA came to the school. I was not very comfortable with it all, but at least it made me start considering my savings.

 

I decided to do some research about retirement funds, etc. I am so glad I found this site. I have read through most of the forums to see if anyone had the same questions as I did. I know more now than I did before, thank you.

 

I am still a little confused about whether to start a 403b at this time. Roth IRA? What would you do? I am recently married, have some student loans, so I cannot save too much monthly.

 

My school has the following providers:

 

AXA Equitable

Lincoln Investment Planning, INc.

Lincoln Financial Group

Citistreet Retirement Services Divisiion/MetLife

THe Variable Annuity Life Insurance Company

Fidelity Investments

 

From what I have read, it sounds like Fidelity is the way to go, but I am also starting to think that a 403b might not be the best option.

 

Anyway, I just wanted to invite any suggestions, here what others would do in this situation. Where do I begin with it all?

 

Thanks!

 

Marie

 

 

Marie

 

Vince is correct that you should probably go with a Roth. But should you marry (if you are single) another non-profit individual and then have more money to play with once you and your husband both max out your roth you should definitely consider tax defferment through a tax shelter plan but not through any kind of annuity. Make sure Fidelity at your place of employment is not associated with an insurance company.

 

Keep in mind investing $4,000.00 a year at your age is a good start but so many young teachers think that amount will get them to the promised land once they retire. It won't. Make sure you increase the amount you put into your investments every pay raise you get. I think once you can afford to you should try and put 20%

of your total family income to work for you in both a Roth and a 403B plan. Go with an auto investment plan on the roth so you never see or miss the money.

 

Also make sure you diversify. For starting out you could put your Roth money in the Vanguard Total Stock Index fund which is what I would do because you are getting instant diversification and get off to a great start. Later on you can further diversify once you become a more sophisticated investor.

 

Please tell everyone you know about this website. We need to educate the masses.

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A Roth IRA would be terrific, especially since you have such a long time to enjoy compounding returns. You would not have to worry about district options; you could invest with whichever company you want.

 

A 403b is also a good option, especially if you can benefit from the reduction of taxable income that will lower your income taxes. Fidelity is probably the best option on your list of providers. Its Spartan funds are among the least expensive choices around.

 

Don't worry about not having very much to save. Even if you can save only $100 a month (for 10 months per year) for the next 40 years of employment, you would have over $259,000 when you are ready to retire, and that is assuming a conservative return of 8%. At 10%, you are over $442,000.

 

Time is on your side. Yes it is.

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Thank you so much for the advice already. I think that a Roth IRA will be my first step.

 

I like how Maurizio put it... one day being a " more sophisticated investor." That's my goal!

 

-Marie

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