Personal Finance on Yik Yak | At the age of 21, is it better to invest in an IRA, a traditional investment account, or a mix of both? I would think an IRA, but that locks up a lot of my money as a college student who might need access to it in emergencies.

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Personal Finance 44w

At the age of 21, is it better to invest in an IRA, a traditional investment account, or a mix of both? I would think an IRA, but that locks up a lot of my money as a college student who might need access to it in emergencies.

Anonymous 44w

Roth while income is low (bc you’re taxed now on it in a lower bracket)

Anonymous 44w

I’d keep both a Roth and a traditional. I believe that every thousand dollars invested in a blue chip stock is worth at least ten thousand upon retirement. But it’s important to not get any penalties pulling it out early.

Anonymous 44w

I have both, but I don’t know which to focus on.

Anonymous 44w

Roth IRA are for retirement; good that it “lockes” it up so your dumb ahh college student cant access it for party money. I been contributing since i was in college bro; trust me, not being able to pull out saved me ahh more times then not. Now im 30 and still on track to retire when im 45 like i planned

Anonymous 44w

I do 12% Roth 401k and whatever I have beyond my roughly $1500 of monthly expenses goes into a HYSA or personal brokerage. Until I own a home I don’t see the value in an ira. I’d like to be able to pull more than 10k from my main investment vehicle to put towards a downpayment. Also if I’m gonna save as aggressively as I am I want to to actually be able to retire early without taking withdrawal penalties.

Anonymous 44w

This belief is incredibly misinformed. You’re going to need to buy a home eventually and investing, in my personal experience, has a much higher return than any savings account or CD. The only difference between a Roth ira and a regular brokerage is not being allowed to withdraw more than 10k for a downpayment without penalty. Why tf would I intentionally restrict my buying potential? To pay somebody else’s mortgage as a renter? Use your brain

Anonymous 44w

I will not be taking from the 401k but there’s essentially no difference between a retirement account and a regular brokerage. Money saved is money saved.

Anonymous 44w

Yea $1500 locked in monthly payment towards your own equity versus $1500 rented with increasing cost year after year. Even with home repairs, 15 years of responsible home ownership far exceeds renting. Is it better to retire in a rental paying potentially upwards of $2000 a month or be paying nothing but property tax? A house is a store of value. Renting beyond 10 years when you have the capital to buy real estate and aren’t moving frequently is idiotic.

Anonymous 44w

And I never said I’d borrow from a 401k. Read.