Friday, October 23, 2009

College Graduates - Be a Finance Guru with a Few Steps

4. Don’t forget your 401(k). Hopefully, your new employer offers some sort of retirement plan such as a 401k. Your 401(k) is the easiest way to invest since it’s automatically deducted from your check. Out of sight, out of mind, heading straight into your retirement savings. The best part is if your company’s 401(k) has a match. You’ll be making free money by just participating in the plan. You can’t beat that when it comes to any other retirement savings plan. 

5. Say yes to the Roth IRA. This is pretty basic advice that you probably hear from a lot of other personal finance bloggers, but it’s one worth mentioning again. After your free money in your 401(k), take advantage of the tax-free benefit of the Roth IRA. Roth IRA, especially for a recent grad, is awesome because time is on your side. You have so much time for the interest and earnings to accumulate for a whopping tax-free sum waiting for you at retirement. Here’s a good resource for what you need to know about the Roth IRA rules for 2009. These are five basic steps to get you on the right track. Congratulations on your recent graduation.

Have fun, enjoy, and get financially set.

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