401k or Roth(no company match) (student loan, tax, money, salary)

[jdm2008]

I'm about to take a job where I have the option of a 401k or a roth IRA. From what I've read 401k is only good if the company matches. For my personal situation. I have almost no retirement( like 2-4k, I'm 24) and will be making in the 50's.

[debtmonger]

Can't beat the Roth IRA, because your investments grow tax free. Investing for retirement is important, but you want to make sure that you have 6-9 months emergency fund in a money market or savings account first. You are smart to be thinking about retirement at 24, the earlier you start the better.

[HappyTexan]

I'd go Roth at your age. As debmonger posted..emergency stash comes first. Then fund the Roth.
As your salary increases each year put more away. Bonus money..put some in the Roth.

[M3 Mitch]

Are you sure the 401K does not have any company match? Generally, if you have a 401K available, IIRC you can only do a limited amount of $ per year into a Roth.

[wheelsup]

My company offers a Roth 401k option. Best of both worlds. Maybe your company does too?

[suzie02]

Originally Posted by jdm2008

I'm about to take a job where I have the option of a 401k or a roth IRA. From what I've read 401k is only good if the company matches. For my personal situation. I have almost no retirement( like 2-4k, I'm 24) and will be making in the 50's.

If it is offered through your employer you must be talking about a 401k Roth which are fairly new.

Regarding 401k or Roth IRA, you can do both if you want to. We do.

[billiken]

The general rule of thumb: If you think your tax rate will be higher when you withdraw the money at retirement, you should use Roth.

[sterlinggirl]

Originally Posted by billiken

The general rule of thumb: If you think your tax rate will be higher when you withdraw the money at retirement, you should use Roth.

Another general rule of thumb: Tax rates frequently increase but seldom decrease.

[jdm2008]

Originally Posted by wheelsup

My company offers a Roth 401k option. Best of both worlds. Maybe your company does too?

Yes the wording in the offer is "401k with rollover provision immediately" At the interview they said it was a roth.

[jdm2008]

Originally Posted by HappyTexan

I'd go Roth at your age. As debmonger posted..emergency stash comes first. Then fund the Roth.
As your salary increases each year put more away. Bonus money..put some in the Roth.

Thats the plan. When I ran the numbers it will take about 3 or 4 months to get 6 months spending money. Then I will probably contribute small amounts until I pay off student loans then I will contribute larger amounts.