My two sons have just come to me for advice on where to put some of that extra money Each with a different senario
Son 1 Out of College a year and 1/2 , (23 yrs old ) Out on his own has a total of about 10,000.00 saved. Loves his job but currently basicly just making ends his meet, No need to dip into savings but not adding to them. no retirement plan at work, small amout towards a health plan but expects promotions with this small business as it is expanding. (savings are from when he spent time at home before getting moving out to shared digs) He's not sure if and how much he can afford to put away in an Ira this year, and if he can whether it should be a roth or regular. Other info-Small $5000 school loan@ about 2% .no cc debt, Sometimes talks about grad school. Has an older car but commutes only 5 miles.
Son two - has just graduated mid year (22) and will start a job in a month that will have good health and retirement benifits (Will be working for a municpality), He has a small stash of about $2500 from work during college and no loans or cc debt. Will live at home for a couple of months but I doubt we'll be able to keep him here for a year. Has an older truck but his biggest wants/ need is to save to be able to pay cash for a 4 wheel drive before the winter to be sure he can get to work. Loved the idea of never getting into car loan cycle. Will have a 30 mile commute from here.
I'm torn on advice to give them, Proud of them both. Both are in much better shape then I was at that time. How much do I suggest them to save for the long run while they are trying to get thier feet on the ground? For Son One - any recomendations on roth vs reg ira before he files taxes this year? And how much he needs to start squeezing out of his monthly budjet to save for long run?
Son 1 Out of College a year and 1/2 , (23 yrs old ) Out on his own has a total of about 10,000.00 saved. Loves his job but currently basicly just making ends his meet, No need to dip into savings but not adding to them. no retirement plan at work, small amout towards a health plan but expects promotions with this small business as it is expanding. (savings are from when he spent time at home before getting moving out to shared digs) He's not sure if and how much he can afford to put away in an Ira this year, and if he can whether it should be a roth or regular. Other info-Small $5000 school loan@ about 2% .no cc debt, Sometimes talks about grad school. Has an older car but commutes only 5 miles.
Son two - has just graduated mid year (22) and will start a job in a month that will have good health and retirement benifits (Will be working for a municpality), He has a small stash of about $2500 from work during college and no loans or cc debt. Will live at home for a couple of months but I doubt we'll be able to keep him here for a year. Has an older truck but his biggest wants/ need is to save to be able to pay cash for a 4 wheel drive before the winter to be sure he can get to work. Loved the idea of never getting into car loan cycle. Will have a 30 mile commute from here.
I'm torn on advice to give them, Proud of them both. Both are in much better shape then I was at that time. How much do I suggest them to save for the long run while they are trying to get thier feet on the ground? For Son One - any recomendations on roth vs reg ira before he files taxes this year? And how much he needs to start squeezing out of his monthly budjet to save for long run?