January 8, 2024
Question:
How should someone in their 30’s start saving for retirement if they work a few part time jobs in the restaurant business that do not offer any retirement plans?
Answer(s):
Kate: Open an IRA, you can contribute up $7,000 annually if you are under 50 and $8,000 if you are 50 or older. Each paycheck transfer an amount to that IRA before you do any of your spending. If you can set it up for an automatic contribution on your pay dates that is better because you don't have to think about it. Even if you can only start with a small amount it will add up over time!
Liz: Split between a traditional and Roth IRA, so you have some pre-tax and some tax-free savings for retirement. Make sure you invest your contributions, don't just leave them sitting in cash. Additionally, when you get a raise or any additional income, increase your percentage that you're contributing by at least 1%.
Becky: If they reach the contribution limit and still have excess money to invest, they could also contribute to a brokerage account.
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