I just turned 30 last fall, and my spouse and I have been busy. She’s finishing her degree in political science (prelaw), I’m thinking about how to level up my career, and we’ve both got baby planning and homeownership on our minds. With all that going on, planning for retirement has definitely taken a backseat. But (sigh) I edit personal finance content for a living and I do know better: The earlier you start saving, the more it grows. I’m sure I’ll thank myself in 30 years if I bump up my contributions now.
— AJ Cohen / Money Editor / Brooklyn, NY
Get answers straight from the career and finance pros.
We asked you to vote on a question you'd like answered. The winner was:
Should I put money into a pretax 401(k) or a Roth 401(k)?
FEATURED EXPERT:
Ashley Feinstein Gerstley
Certified financial planner, author, and founder of The Fiscal Femme
With a Roth account, you pay taxes now. With a traditional (or pre-tax) account you pay taxes when you take the money out. In both accounts, the investments grow tax-free. “Fun” fact: If your tax rate now is the same as your tax rate when you retire, there is no tax difference between what you will owe with a Roth and traditional account. Cool, right? (Yes, I know. My sense of cool is quite warped.) Generally, if you think you’re in a lower tax bracket now than you will be when you plan to take the money out (ie, you think you’ll be earning more then), then it makes more sense to pay taxes now. Important caveat: This assumes tax rates look similar to what they are now when you retire, but we don’t actually know what they will be. Paying taxes now can avoid some tax risk in case taxes go up.
This interview has been edited and condensed for clarity. You can read an extended version here.
An inside look at how women are building wealth.
“I worked really hard in my early thirties to build up a six-month ‘peace of mind’ fund, but I lagged with investing and saving for retirement. Now, I’m proud to say that this will be the third straight year that I’ll max out both my 401(k) and IRA annual contribution limits.”
— Dani M (CA). Calling all elder millennials: It's not too late to catch up on saving for retirement. These tips will help you get there.
Scored a raise, saved up for a big purchase, or reached another money goal? Tell us about it here. Quotes are edited and condensed for clarity.
The money stories everyone’s talking about.
Speaking of 401(k) contributions…
Some employers match student loan payments via retirement plans, too.
Wondering how you’re doing on retirement savings?
Here’s how much everyone else has saved.
It’s never too early to start saving for retirement…
Even if it's for your child.
A new law lets you take out $1,000 or less (penalty-free) from your 401(k) if you claim financial hardship…
But is it a good idea?
As more Gen Z young adults depend on their parents for financial support…
Some parents are feeling the pressure to unretire.
How to win at work, according to successful women.
You told us you want more career-related content, and we heard you. In our new weekly series, Action Items, which will appear in our Friday newsletters, we ask successful women to share career advice on everything from asking for a raise to bouncing back from a setback to avoiding burnout, and more. Read the first installment below.
Éva Goicochea is the founder, CEO, and creative director of Maude, a sexual wellness company focused on inclusivity and simplicity. She’s one of only a few Latinas in the consumer goods industry who have raised over $10 million in venture capital, so obviously we had to tap her for some career tips. Below, she shares her words of wisdom for what to do if you fail, want a confidence boost, or have to give difficult feedback.
Advice for what to do when you…
Fail…
Failures feel like failures in the moment, but with hindsight, you'll see them as the steps to have gotten you where you are.
Feel stressed out…
Pause, take a deep breath, and consider what is within your control and what can be changed in the immediate.
Want a confidence boost…
Pretend your inner dialogue is always directed at your child self. I guarantee you'll be kinder, gentler, and a bigger cheerleader for yourself.
Have to give difficult feedback…
Recognize that if the intention is considered and the outcome is necessary, then it is required. Just be thoughtful with your words.
Get your paycheck...
Put 10–20% away in savings and investments.
This interview has been edited and condensed for clarity. You can read an extended version here.
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