Rec | OPEN A ROTH IRA AND MAX IT OUT

Rec

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If you are eligible and have some savings. Wish that I did this earlier than I did.
I know money isn’t important to everyone and times are shitty, especially when you are young, but compound interest is pretty crazy. you can do something now that will let you retire earlier or live more comfortably one day so it might be worth it to you.
If this is too big of a step, another thing that I recommend that is also savings-oriented is opening a high yield savings account. A lot of them offer 5% interest.
Free money feels good.

@whalebutt

Jul 17, 2024

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@wwb

+1000. They are really awesome savings vehicles. And the tax arbitrage is in your favor. You are probably going to be making more. If the US does manage to stave off fiscal collapse meaning the account is worth something then taxes will almost certainly be higher. And you can withdraw the principal for the reasons you would need to save for.

Jul 19, 2024

@joe_m_miller

Most of the time, IRAs are pretty evil. You may be able retire a little earlier, but by the time you get there the planet’s been ruined on your dime. happy retirement

Jul 17, 2024

@whalebutt

joe_m_miller You get to choose the companies that you invest in. You can find companies that align with your values. Also it is probably not a little early, probably 10 years earlier than someone without investments. Plus that person will have the money to buy environmentally efficient products, donate to causes they believe in, educate the next generation etc.

Jul 17, 2024

@wwb

joe_m_miller more like “get to retire at all” given the trend in social security and population pyramids.

Jul 19, 2024

Related Recs

Rec

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Hysa and pay YOURSELF first

Open a high yield savings account - you get an, obvs, super high interest rate, which is a great incentive to put money in there. Either direct a percentage of your paycheck in there, or transfer money in there immediately after you get paid. Great place to house your emergency fund (3-6 months of expenses) because it’s easily accessible.
There are lots of books on saving for retirement- I recommend the simple path to wealth because it’s easy to understand, required very few action items, the author crunches the numbers while he’s explaining things, and you don’t have to be someone obsessed with savings and personal finance to benefit from it, like me!

@bbqt

Mar 7, 2024

Rec

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High yield saving accounts

I know savings are hard to come by, but it is basically free money. You can find accounts that give you 5% apy ($50 a year for every $1,000 you have saved if you are bad at math like me)
Follow me for more financial tips (jk)

@whalebutt

Feb 11, 2024

Rec

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Make it hard to spend

if you have the option to divert a % of your paycheck directly into savings, do it!
get a high yield savings account with a different bank (I recommend Marcus) that requires that you transfer money out of the bank where you have your debit card—takes a few business days to transfer which means you can’t spend it willy nilly but it’s there when you need it