#retirementplanning #savings #401k #employercontributions
Maximize Your Roth IRA Contributions
Consider maximizing your contributions to your Roth IRA, as you are already on the right track with $17,000 saved. Roth IRAs offer tax-free growth and withdrawals in retirement, making them a valuable tool for saving for the future.
Consider Opening a Traditional IRA
If you have already maxed out your Roth IRA contributions, consider opening a Traditional IRA. While contributions to a Traditional IRA are not tax-deductible like those to a Roth IRA, they can still offer tax-deferred growth, helping your savings grow over time.
Explore a Health Savings Account (HSA)
If you have a high-deductible health insurance plan, you may be eligible to contribute to a Health Savings Account (HSA). HSAs offer triple tax benefits, allowing you to contribute pre-tax dollars, grow your savings tax-free, and withdraw funds tax-free for qualified medical expenses. In retirement, HSA funds can also be used for non-medical expenses penalty-free.
Invest in a Taxable Brokerage Account
Consider investing in a taxable brokerage account if you have maxed out your retirement account options. While these accounts do not offer tax advantages like retirement accounts, they provide flexibility in terms of contributions and withdrawals. You can invest in a diverse range of assets in a brokerage account to grow your savings over time.
Consult with a Financial Advisor
If you are unsure about your retirement savings options or need personalized advice, consider consulting with a financial advisor. A professional can help you create a comprehensive retirement plan tailored to your goals and financial situation.
By exploring alternative retirement savings options and maximizing your contributions to other accounts, you can continue to build your savings and secure your financial future, even if your employer does not match 401k contributions. Remember, every dollar saved today can make a significant difference in your retirement lifestyle tomorrow. 💸🌟
Are the 401k funds decent enough? It is still your best option for pretax retirement savings.
an employee match is just the cherry on top, the tax advantage from contributing to a workplace retirement plan is the rest of the sundae. the lack of a match is not a good reason to not be contributing.
Don’t turn down the tax shelter on $23,000 of income just because there’s no match.
>I have been looking into ibonds but keep seeing that they are not good for retirement funds.
Correct, too low of returns for your retirement at this stage. At your age you should have basically all your retirement funds in equities, total market or s&p500. Can use an index target date retirement fund if you want to keep it as simple as possible.
Max rIRA and 401k before using a taxable account for retirement savings.