Olde Hornet
Well-Known Member
https://retirementplans.vanguard.com/VGApp/pe/edufreshness/FirstJob#/
Here are five suggestions to help you prepare for your comfortable retirement, even on a starting salary:
1. Join your employer’s retirement plan.
Now this seems obvious, but it’s surprising how many new college grads wait five years to join their employer’s retirement plan. That kind of delay can cost you thousands of dollars at retirement.
So sign up as soon as you’re eligible. When you participate in the plan, money is automatically deducted from every paycheck.
If you make pre-tax contributions, the money you save—and what it earns over the years—is not taxed until you withdraw it.
You will owe income taxes on your withdrawals, ideally in retirement. However, if you make withdrawals before age 59½ you could also owe an additional 10% penalty tax unless you meet one of several exceptions.
2. Save enough to get the full match.
Here are five suggestions to help you prepare for your comfortable retirement, even on a starting salary:
1. Join your employer’s retirement plan.
Now this seems obvious, but it’s surprising how many new college grads wait five years to join their employer’s retirement plan. That kind of delay can cost you thousands of dollars at retirement.
So sign up as soon as you’re eligible. When you participate in the plan, money is automatically deducted from every paycheck.
If you make pre-tax contributions, the money you save—and what it earns over the years—is not taxed until you withdraw it.
You will owe income taxes on your withdrawals, ideally in retirement. However, if you make withdrawals before age 59½ you could also owe an additional 10% penalty tax unless you meet one of several exceptions.
2. Save enough to get the full match.