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Subject:  Re: IRA in addition to 401k? Date:  8/25/2000  12:43 PM
Author:  rhecker Number:  24347 of 88498

I'm 22 years old, just graduated from college, and have started my career. I contribute to my 401k to the maximum of the company match. I'm wondering whether or not I should also open an IRA. Is it wise to have both a 401k account and an IRA account?

Congratulations for starting to save and invest so early! Yes, it's a very good idea to have both a 401k and an IRA if you can afford it. Before you start the IRA, however, you should probably make sure you have an emergency fund. The emergency fund should let you live without an income for at least a few months. This will allow you to more comfortably do any number of things including finding a new job after being layed off, recovering from an injury, or paying for any other unexpected expenses. While it might not be the best way to go about it, I would personally try to build up the emergency fund and my IRA at the same time.

Oh... and make sure to enjoy the present while saving for the future!
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