Help 38 yr old daughter start saving and planning for 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.