Ask Terry Questions Help 38 yr old daughter start saving and planning for retirement

Help 38 yr old daughter start saving and planning for retirement

By Terry Savage on June 21, 2024 | Financial Planning / Retirement

She has just left teaching and now has a new job in a non profit. I appreciate any advice you can give me. Thank you so much

Terry Says

Well, first, she should have chosen a job that offers a retirement plan — in the case of a non-profit, it would likely be a 403(b) plan (like a 40l(k) plan).  If the job doesn’t have retirement benefits, and an employer contribution, then she should find another job!  Quickly!   If the job does have a retirement plan, she should sign up as soon as she is eligible and contribute the maximum amount.  It is a tax deduction — and will grow tax-deferred for her retirement.

And if she insists on sticking with a job that does not offer retirement benefits. she can contact Vanguard or Fidelity to open an Individual Retirement Account — and put $7.000 in it on a pre-tax basis.  She’s young enough that she should just invest the money in teh S&P 500 stock index fund, on a regular basis, till she gets up to the full allowable amount.

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