Author Topic: Should I open a Roth IRA?  (Read 744 times)

Giants99

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Should I open a Roth IRA?
« on: January 20, 2018, 07:52:40 AM »
Early 30s, make in the mid 70s.  Have a good 401k at work (6% match, plus 5% employer bonus contrib.).  I contribute to only what gets matches currently.  I also have a small pension which will be approximately $200 a month at retirement (pension is no longer active).

FiancÚ works for the state and has a government pension.  States pension is troubled (NJ), but we just elected a new governor and he is very friendly to public workers and presumably will not touch the state pensions.  She has no retirement savings (pension would provide good money if it lives up to what is promised). 

In this situation, should I increase 401k or do a Roth IRA first?

GizmoTX

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Re: Should I open a Roth IRA?
« Reply #1 on: January 20, 2018, 09:03:55 AM »
Put enough into your 401k to get the match, fully fund a Roth IRA, fully fund an HSA if available, then commit any extra retirement savings to your 401k. You will have hedged between tax-free (the Roth) & tax deferred (the traditional 401k).

HMU2018

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Re: Should I open a Roth IRA?
« Reply #2 on: January 20, 2018, 09:06:00 AM »