401(k) Question

[taylo701]

I suppose I am going to start with the personal background of why I'm asking this questions. I'm a recent college grad and I started my first job a few months back. I can now begin to contribute to my 401(k) and I'm wondering if I should start now for two reasons. This first question I suppose also applies to other people in my company who are curious.

I am in a long distance relationship with someone out of the country. If there is the possibility that I may be moving out of the country in 2-5 years, should I begin saving in any sort of retirement account (this applies to my coworkers because many of them are international workers and there's always a chance they'll move back)?

The second reason is that I am still working on paying off my student loans, which most advice I've seen says to pay off debt before saving. However, the interest rate is comparatively low (lower than what I've seen estimates for the average 401(k) so the interest I earn on saving could be more than what I save by paying off my loans quicker) and with my current plan I will have them paid off in two years. I also think I will probably be able to save some while keeping up with my current plan.

Anyway, sorry for the long post and thank you in advance for your advice!

[agarlits]

I suppose I am going to start with the personal background of why I'm asking this questions. I'm a recent college grad and I started my first job a few months back. I can now begin to contribute to my 401(k) and I'm wondering if I should start now for two reasons. This first question I suppose also applies to other people in my company who are curious.

I am in a long distance relationship with someone out of the country. If there is the possibility that I may be moving out of the country in 2-5 years, should I begin saving in any sort of retirement account (this applies to my coworkers because many of them are international workers and there's always a chance they'll move back)?

The second reason is that I am still working on paying off my student loans, which most advice I've seen says to pay off debt before saving. However, the interest rate is comparatively low (lower than what I've seen estimates for the average 401(k) so the interest I earn on saving could be more than what I save by paying off my loans quicker) and with my current plan I will have them paid off in two years. I also think I will probably be able to save some while keeping up with my current plan.

Anyway, sorry for the long post and thank you in advance for your advice!

If your company matches your contributions and you can continue to make contributions up to at least the matching amount and the gains are greater than what you are paying in interest on your debt than it is not a bad idea to start now. Generally speaking the earlier you can begin to contribute towards retirement the better off you will be, due to the magic of compound interest.

[jpham540]

Yes you should definitely start your 401k; you will thank yourself in the future. If you can’t max it out at least put in enough to get your company match. Even if you plan on moving to a different country you get to keep whatever you contribute, but I’m not sure how you will get tax in a different country when you start withdrawing it. Like the above poster was saying you have time on your side so let the magic of compounding do its job.