Hi All,
I'm 22 fresh out of college, and have just started working. I'm worried about over-contributing to my 401k and my Roth IRA because they are so very illiquid until you retire (early or regular...it's a long ways off for me). Right now my plan is to do 8% to the 401k (plus the max 3.5% employer contribution) and $3k per year to the roth. But what concerns me is that these funds will be unavailable for so very long (without paying 10% penalties and losing the tax benefits...and who wants to do that). Is this a valid concern? I am thinking of potential uses for the money down the road, things like buying a house, starting a business, who knows what opportunities could come along. Am I being silly about this?
I'm 22 fresh out of college, and have just started working. I'm worried about over-contributing to my 401k and my Roth IRA because they are so very illiquid until you retire (early or regular...it's a long ways off for me). Right now my plan is to do 8% to the 401k (plus the max 3.5% employer contribution) and $3k per year to the roth. But what concerns me is that these funds will be unavailable for so very long (without paying 10% penalties and losing the tax benefits...and who wants to do that). Is this a valid concern? I am thinking of potential uses for the money down the road, things like buying a house, starting a business, who knows what opportunities could come along. Am I being silly about this?