Quick IRA question

[Fiveohhh]

I can enroll with my company in a few months and wondering ifits a good idea. They match, but only 25%, and up to 12% of my income(about 28k)(for every $100 of income max they'll match is 25% of $12). Theres a good chance I won't be there in a year too, not sure if that matters. Otherwise I was thinking of doing a roth IRA. I can't afford to do both. My financial situation isn't too bad I have a house and no cc debt, so if I don't invest it in an IRA it'll go into maybe getting a garage on the house or finishing fixing it up so I can sell this fall. Any thoughts or links to websites that have some pointers would be greatly appreciated.

 

[KLin]

investing in a retirement fund is always a good idea.

 

[todpod]

If you are not going to be there in a year probably be better to do the roth, unless thry will vest it right away which I doubt.

 

[Heifetz]

Always get the maximum match if you can afford it, its free money! You'll need to save anyways, why not make it easier and have the company chip in?

 

[axelfox]

free money

 

[cjgallen]

Lots of companies will take back the matching funds if you don't stay with them for 2 or 3 years.

 

[Fiveohhh]

Originally posted by: cjgallen
Lots of companies will take back the matching funds if you don't stay with them for 2 or 3 years.

I'll have to talk with the HR lady about that on Monday.

 

[DaveSimmons]

Only 25% match, and there less than a year means you will probably not be "vested" enough to get more than 20% of that (= 5% match), possibly only 0% of the matching. Plus you'll probably get second-rate funds and have the extra work of rolling over the money when you leave.

Given all that, I'd recommend a Roth IRA at vanguard.com and investing in their VFINX S&P 500 fund. You might try to put in $1,000 - $3,000 for year 2004 if you can set it up before April, then put in ask much for 2005 as you can afford up to $4,000.

I think Vanguard will waive account maintenance fees if you set up for monthly withdrawals from checking, or you can just put in enough to start ($5,000 = $3K/'04, $2K/'05) to meet their no-fees minimum.