Advice on Next Steps for a 22 Year Old? : personalfinance

by akoloy

I took a take a look at the flowchart situated on this subreddit, and located it actually useful however nonetheless had some questions that I would really like recommendation on.

Context: I’m 22 y/o, making $35-45k a 12 months within the U.S. Just completed paying off my scholar loans final month. I stay at residence so I haven’t got loads of bills (apart from automobile insurance coverage, household telephone invoice, wifi, and a $200 month-to-month stipend I give my mother and father). I’ve began an emergency fund already, a fund for a home (not transferring out anytime quickly although), and have a 401k plan with my employer.

I found out my subsequent steps would come with beginning an IRA and entering into investing (index funds). However,

  • I hear that IRAs cannot be transformed into SEP-IRAs, and I’m considering of being self employed sooner or later. Should I begin an IRA anyway? I will not be capable to entry that $ till I’m 59 although.. (Also, what if one thing occurs to me and I die earlier than then.. I would not even have entry to that cash then..) Are there different retirement plans apart from a 401k I must be / beginning?
  • If I do not begin an IRA, ought to I start investing in Index Funds? I’m considering of opening an account with Fidelity and have been among the plans they’ve that I may put money into. Should I begin this with out beginning an IRA? How a lot $X ought to I make investments into it month-to-month? (Also, are index funds paid out in dividends? I do know folks make investments to get extra $ for long run objectives – what do these long run objectives often embrace, like a home?)

I’m additionally assembly with a monetary advisor quickly subsequent week. What questions do you assume could be good to ask them in my state of affairs?

Much because of anybody who has learn this a lot!

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