Tweet
I'm in my early 20s with a pre-tax income of roughly 35,000 a year. Because I live and work in China, I'm able to save most of my income. However, because I work for a Chinese company, they do not offer a 401k. I'm thinking of going to grad school in few years, but would like to get a head start on saving for the future. What would be the best way to invest my money? Should I start a retirement plan now? If so, which plan should I choose? Thanks for your help!
-
-
You do want to start now.
I suggest starting by saving "at least" 20% of your income ($7000) per year. Put 15% into retirement accounts and 5% into a short term account.
For retirement, look at an IRA . Possibly a Roth, or a traditional might work too. I would lean towards Roth with the little I know about your situation now, but if new information is given, I might change my mind.
For grad school, use the 5% you add to short term savings be a start to that... if you know how much you need for grad school,, I would create a specific plan to fund that goal... as long as 15% goes to retirement you will be in decent shape... fund grad school with different money than you fund retirement with.
Comment