Tag: company match
Which Retirement Account Should You Open First?
Filed under: Retirement, Retirement Plans, 401K, IRA, Roth IRA Lite Productions By Sharon Epperson Your first priority when it comes to saving for retirement should be to make sure you’re putting away enough money. But once you’ve earmarked a percentage of pay for retirement savings, where do you put it? Research shows that if you start saving 15 percent of your pay when you’re 35, you should have enough money by age 65 to live comfortably in retirement. “The most important question is ‘Are you saving 15 percent, including an employer match?’ ” said Stuart Ritter, senior financial planner at T. Rowe Price. “Then you have to decide which accounts to use in order to save that 15 percent.” Ritter suggests prioritizing retirement accounts in three steps: Match. Roth. Traditional.
