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how to start a 401k

where should i go?

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ElsaSalsaaa

Asked by ElsaSalsaaa at 1:33 PM on Dec. 10, 2010 in Money & Work

Level 20 (9,139 Credits)
Answers (4)
  • Not a smart investment check out richdad.com
    IraqiVetWife

    Answer by IraqiVetWife at 2:14 PM on Dec. 10, 2010

  • A 401k IS a smart investment, especially when you still have a lot of time before retirement. It's not going to get your rich over night, it takes time to grow, but you will get larger returns than a savings account. Many employers will match your contributions up to a point, which helps it grow even faster. A 401k is offered by an employer. Usually you are eligible at either 6 months or a year after employment, depending on the employer. If you have already passed the initial enrollment period, you may need tp contact your benefits coordinator.
    Just in case you aren't talking about an employer sponsored retirement account, then an IRA is what you are looking for and you can go to pretty much any financial institution to set one up, your bank will do them.
    slw123

    Answer by slw123 at 3:35 PM on Dec. 10, 2010

  • A 401k is a smart place to put your money if 1.) you know what you're investing in. Talk to a financial adviser that is willing to explain the different investments. 2) It has a match.

    You'll have to talk to your employer to get started.

    I personally would only invest in a 401K up to the match. After that a Roth IRA is the best place to put your money. And then of course if you've maxed out your Roth (you can only put $5000 a year in it) then you can put more into your 401k if you'd like.

    But talk to a financial adviser. They'll be able to give you the ins and outs on where and how to invest your money. Good luck!
    Erica_Smerica

    Answer by Erica_Smerica at 5:33 PM on Dec. 10, 2010

  • Ignore the first poster, richdad.com is a scam. A 401(k) is a good investment if a) you are planning to keep the money in there until you retire, and b) you speak with an investment advisor about how to make your money invest int he right things for your for your age.

    If you are working with a company that offers a 401(k), you can talk to your HR rep and he/she can hook you up with someone. If you don't have it through our work, you can get with a financial advisor and get one set up (Edward Jones or something similar).

    Keep in mind that 401(k)s can go up and down in value, so if it goes down temporarily, don't freak out. They are LONG term investments, meaning they will grow OVER time; they are not meant to make you money quickly.
    SherriPie

    Answer by SherriPie at 10:07 AM on Dec. 11, 2010

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