The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: RedMaple on December 09, 2015, 11:18:47 PM
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I'm single, under 35, no plans to go to school, and would like to contribute to my retirement $20k+ pretax dollars each year. My company currently isn't offering a 401k, but will in a year/year and a half. For the time being, what is my best strategy in saving for retirement?
From my understanding I can contribute pretax dollars to the following accounts.
IRA max contribution is $5,500 (2015 number)
HSA max contribution is $3,350 (2015 number)
Is there anything else that I can do?
I was thinking of putting the remainder in a taxable account, but I don't know if I should keep that account open once I get access to a 401k. With that said, I feel like it would be too risky to withdraw the entire balance in a couple of years. I won't necessarily need the money, I just don't know if keeping it in the brokerage account long term is a good idea.
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You've identified the major ones, HSA and IRA. Sorry but your options are after tax investment account. I wouldn't draw from it to shore up a 401k when you do get one as a 401k is usually filled with money that you earn from your employer not money you've saved.
Get a different job with a different company or realize that a year/year and a half isn't that long of a time as far as these things go. One or the other depending on your temperament/goals.
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... there are only two other things (besides the IRA and HSA) that I see that you could do;
1) request that your business implement their 401(k) strategy faster, even if they don't offer a match the first year. Why the 1.5y time frame?
2) you could always start a side hustle and make it into a business, paying yourself a small salary and creating your own 401(k) (which you can match contributions to yourself). Obviously a heck of a lot more work and you need a side business that generates a fair bit of income.
otherwise--- yeah, there's not much else you can do. 1.5 years isn't that long so just max out your 401(k) as soon as it's available.