My most earnest rec - open a Roth IRA and auto deposit as much as you can every month.

Reading this now

👍

I am *very happy* to provide more info - ask me anything!

Same!! I’d love to know how how this is different than maxing out a 401(k)? Mainly that you can take money in and out more easily?

So! Think of the 401k and the Roth IRA as you different types of buckets. The 401k bucket is owned by your employer (but you own what's in it). They take the money out of your pay before your taxes are taken out from your paycheck and put it in the 401k, so it is pre-tax money. When you go to take the money out in retirement, you will pay taxes on it as if it is regular income. If your employer offers a match, put money into this account up to their match! The govt limits how much you can put into this account, this year the limit is $24,500. The Roth IRA you set up and own the bucket yourself. You put in your own money, so these are post-tax dollars, but then when you take the money out in retirement you pay no taxes. The limit on this account is $7500 this year. After you meet your 401k match, aim to fill this bucket!

As far as what you fill the buckets with, you can do the same kinds of investments or different! I just do what's easiest in both, where I buy the whole stock market via a "total stock market fund" like VTSAX. I hope this helps, Let me know what other questions you have!!

This is super helpful!!

I just want to be a good dad!!

Seriously happy to, email me - Sarah.Louise.beck@gmail.com

I'm at Sarah.Louise.beck@gmail.com and I'm happy to help!!

As long as it's a Roth IRA account at E*trade and your funding it with a total market index fund (like VOO!) you are good to go! I recommend vanguard because it's usually the lowest fee option, but the most important thing is just doing it somewhere!

Yes! Good note, and exactly the same - almost 40, wish I had done this younger!!

This is so important. I started from my very first job and convinced my husband to open a 401k as well. Now we are both in our 50’s and we have about $1.4 million in our retirement funds. We are goaling for $2 before we retire and travel the world!

I live for this comment. It really is just starting early and being consistent, I love to hear real life examples. I'm so happy for you!!

Yes exactly! The stock market has historically returned 10% a year, and then I assumed 3% inflation a year, for a 7% real return, so the $100k in 10 years is in "today's dollars." Obviously no one can predict the future, but I think it's directionally correct.

Love JL Collin's philosophy and this book!!

I think the most similar thing is a tax free savings account (tfsa) in Canada, I rec the podcast money feels - two Canadian women talking personal finance. It's not always relevant to me (I'm American) but I love them!

Thank you!! I will check it out!