401K
Hi Terry, My company does not offer a 401K, I want to know who and where can I go to set one up. I want to be able to go to one I can trust and point me in the right direction. I want to start a 401K, I am late to the game but want to start asap.
Terry Says
Whoa -- I can understand your desire to save, and I will give you some suggestions. But YOU cannot set up a 40l(k) account -- only a company can do that as a framework for its employees to invest on a pre-tax, tax-deferred basis. BUT, you CAN set up your own Individual Retirement Account, and get a tax deduction for your contributions. If you are under age 50, you can put away up to $5500 on a pre-tax basis in a "traditional IRA" (or in a Roth IRA but without the tax deduction for your contribution). And you can have money taken automatically out of your personal checking account every month -- much as it would have been taken out of your paycheck in a company plan. My suggestion: Go to www.Vanguard.com, and contact them about opening an IRA. It is an easy process. When they ask you how you want the money invested, just choose to put half in the S&P 500 Index fund, and the other half in their Equity-Income fund. That should keep you going for a while. So channel that enthusiasm for savings and do it right away!!
