Need job advice

[Jassi]

So I have an offer to work for 2 companies, both positions are something I am really forward to. The first company is a $500M+ company, market leader in their field and relatively insulated from market fluctuations (so far). The second is a local start up that is doing something really cool with Medical Imaging devices. The first has a nice benefits package but the second will be kind of watered down. The issues that I need advice on are these:

1- 401k / IRA - The salary of both positions is similar (lower than average of my peers) but the big company has a 401k plan. I will be the 4th or 5th employee at the start up and I don't think they have such a plan. Worst case scenario is, they can't offer me one (I don't know the laws regarding this). What are my options in terms of retirement savings if the company can't help (no matching). What can I do?

2- Buying a car - The startup is about 20 min drive (city driving - real distance is about 7 miles) and as such will require a car (I would have preferred being able to bike there but that is not realistic). I know cars go down in value so what advice would you give to a young buck joining the work force? Should I get a new car, lease or used? I am not picky, as long as its not butt ugly and has room for me (+ reliable), I'd be happy.

3- Student loans - I have managed to accumulate a sizable sum of student loans and I was wondering what is the best strategy with the loans? I consolidated my loans with the government, I did not fall in to the trap of private lenders that may become loan sharks. I'm hoping that the Dems keep their promise of slashing rates and I can get some relief. My loans exceed 50% of my starting salary so what should I do? Invest in retirement or pay back loans ASAP?

I appreciate any help that ATOT can provide and if there is a better place to ask these questions, please let me know

 

[DaveSimmons]

1 - Roth IRA, you set it up yourself at Vanguard.com or fidelity.com and pick your own stock index mutual funds like VFINX. The limit is $4K/year and you don't get employer matching, but the fund choices are better than in a lot of 401ks.

3 - "so what should I do? Invest in retirement or pay back loans ASAP?"
With the 401k there is usually a waiting period, so you can pay as much extra as you can on the student loans before you're able to join the 401k.

Then you should do the 401k at least up to whatever percent that the employer matches. More if you can afford to and if the student loans are under 10% APY.

If you are doing the Roth at the startup, make the $4K/year contribution then pay down as much as you can on the student loans while staying out of credit card debt.

Either way, don't run up a huge credit card bill just because you have a job. Wait to buy things a little longer until you can actually afford them instead of giving a CC company 20% of your money.

 

[Jassi]

Originally posted by: DaveSimmons
1 - Roth IRA, you set it up yourself at Vanguard.com or fidelity.com and pick your own stock index mutual funds like VFINX. The limit is $4K/year and you don't get employer matching, but the fund choices are better than in a lot of 401ks.

3 - "so what should I do? Invest in retirement or pay back loans ASAP?"
With the 401k there is usually a waiting period, so you can pay as much extra as you can on the student loans before you're able to join the 401k.

Then you should do the 401k at least up to whatever percent that the employer matches. More if you can afford to and if the student loans are under 10% APY.

If you are doing the Roth at the startup, make the $4K/year contribution then pay down as much as you can on the student loans while staying out of credit card debt.

Either way, don't run up a huge credit card bill just because you have a job. Wait to buy things a little longer until you can actually afford them instead of giving a CC company 20% of your money.

Thanks for the advice, I am stingy with a credit card, I like spending money I have - its all cash or debit. I plan on keeping the one cc I have until I can one with nice benefits.

Anybody have advice for a first car?