Quote:
Originally Posted by mpweaver4
Should I start an IRA since my employer does not match any in my 401K?
Should I put all my additional money towards paying down my student loan? Or, should I balance additional money between the student loan, savings, and maybe the IRA?
I was told the next administration might do something to assist those with student loans, and was advised to save / invest more of my additional income as a result of that rather than putting it towards the loan, any validity to that?
I greatly appreciate any and all advice!
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Yes, you should max a Roth IRA ($5,000 for 2008) first before contributing to a 401k with no match. You get a virtually unlimited choice of investment options and more favorable withdrawal conditions in retirement. After you max the Roth, then you can move on to the 401k for the remainder of the year.
I would balance additional money. A $1,000 EF is a good start but not enough. You should get that account up to at least 3 months worth of living expenses and preferable 6 months.
I have no clue what the next administration will do with student loans, nor does anyone else including the candidates. I think you should do your planning based on current law until something actually changes.