Hi, I am 26 years old and am going to start saving for retirement because I know the earlier I start the greater the investment. My question is:Do my husband and I pump extra money into his simple plan at work OR into private Roth IRA's OR both? How many retirment accounts do people normally need?I am asking this question here to get some advice from people who have direct experience with retirement (or ones who just know alot). Thanks, mschindler
Congratulations! Sounds as though you're on the right track by getting an early start. Your husband's simple plan may offer a limited choice of investment options: if one or more of them meet your criteria, there is often the advantage of matching employer contributions - very nice!However, the IRA usually gives greater flexibility of choice. In some circumstances, there could be a disadvantage to having your retirement funds co-mingled with those of your husband's. If the simple plan gives all the choices you need,however, there may not be much reason to go beyond that plan.I've been retired (stock trading semi-full time) for 2 years, with an IRA that I've had since they started. My wife and I each have one, to which we contributed the maximum each year, as well as a rollover from a retirement plan. Hers is mostly in a money market fund and mine is in a variety (3) of mutual funds and money market. With our Social Security, trading profits and dividend withdrawals from the IRAs, we're quite comfortable. Fortunately, we have no debts, so our living cost is easily managed.All of which is simply to say that, if you get an early start, stick with it, maintain an appropriate balance in your portfolio, control the use of leverage (debt,) I'm sure you'll enjoy a very bright and secure future. Good luck!!
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