Lunch started off well, but fifteen minutes in he got very serious and said something like "you’re starting to make some money, have you thought about securing your financial future?"
I recently procured my first real job (score!), and have come up with a basic budget and blah blah blah. Beyond that though, I do not know what I should be doing to get started at Being A Real Adult Who Makes Good Money Decisions.
I've currently got two credit cards with balances: one with $5,500 (interest rate is 9.9%) and one with $1,700 (with a 20.99% interest rate). I've got about $4,000 in my Roth IRA, none of which is invested. I'm trying to figure out if it's worthwhile to withdraw the $1,700 from my IRA to pay down the higher-interest credit card and focus all my monthly payments on the lower-interest one. I've always been told "never borrow against your retirement," but it seems that this might be a good idea. Help?! — N.C.
OK, I am a young professional with a good job that I got in 2008 after graduating college. Since my hiring, I've managed to put away about $12,000 into a savings account, and a few months ago my parents gifted me another $20,000 because they gave up on me ever having a wedding.
Why you need to know this: A Roth IRA is the retirement account financial planners say all young people should have.
I’m a recent college graduate and have been working as a government contractor for the past two years. I have saved about $15,000, which I have mentally divided into thirds: travel/fun money, emergency money, and long-term savings money. I have about $4,000 in Stafford Loan debt leftover from college and no consumer debt.
I don't have any retirement savings. I had precisely one opportunity to sign up for a 401(k), after I'd been working for a year at a grocery store (it was Portland), but I thought I was quitting soon, so I didn't sign up. I stayed for another year.