Forever young! I wanna be Forever young!!

Let’s talk… no seriously we need to talk.. Alright don’t listen to Jay-z, he is a billionaire who once said he wants to stay forever young; news flash your not Jay-z and you don’t have billions and I am certain that you won’t stay forever young. So lets get to planning for ol head status.

You get a new job now what? a new car, new place, happy hour and travels to post on the gram.. Heck yea, retirement can wait cause you need all your coins.. Right? well your wrong. Lets unpack this together.

Most if not all employers match whatever you save up to 6 percent. so you are technically leaving money on the table and who doesn’t love FREE money. Hey if its free its for me. Let’s delve right into some of these options.Add block

Here are some that might be presented as options

• 401(k).
• 403(b).
• 457(b).
• IRA.
• Roth IRA.
• HSA/FSA

401(k)

Are you guys like me? Cause when I first heard the term I was like who came up with that name? no worries I did the research for you. My mans Ted Benna came up with it and the section of where its listed in the irs code book is how the name was formed.

This retirement plan is offered through for profit companies such Walmart etc. You make a contribution from your pay before taxes are taken out and your employer does so as well on your behalf. A perfect example would you decided to save 5% of your salary so your employer in turn would match your contribution up to a certain point, usually up to 6% of your first 5% of your contribution

403 (b)

This retirement plan is reserved for those who work in the public sector and non profit organizations such as public schools, government employees and ministers. The true difference between the 401k and 403b is really how quickly your money is fully vested. Meaning how quickly you are entitled to all the funds your employer place in that account for you. Some for profit companies state you need to be with the company for 5 years to be fully vested, whereas 403b might be much sooner.

457 (b)

This is the most common plan used by state and local governments for their employees. Some of executives of non-profits also use this plan. 

IRA

An IRA is an individual retirement account. This is usually used in addition to a 401k or used by entrepreneurs who want to save for retirement. It is the same premise as the others listed with the exception of no employer is matching your contributions.

ROTH IRA

The Roth IRA was named for Senator William Roth who sponsored it (fun fact) is similar to the OG (IRA). The main difference is that you make contributions after paying taxes on your money. So when you retire all the guap will be tax free.

HSA/FSA

So this actual something I think everyone should partake in especially while your healthy and might not have real medical expenses. HSA/FSA – Health Savings account/ Flexible savings accounts

These accounts allow you to set a preset amount of pre tax money to go towards any medical related issue whether it is cough medications, co-pays, medical bills not covered etc. You will either receive a debit card to use or request a refund after providing receipts for out of pocket expenses. HSAccounts are usually funded by your employer in conjunction with your own money (chile I takes full advantage of all free moola given to me).

Now I know this was not an in depth look at the retirement plans available but I hope this gives you a surface level understanding of what are your options. Often times when we first graduate we are not worried about nobody’s retirement after all I might die tomorrow right? wrong! Start small and put the minimum percentage that will allow you to take advantage of what you company will match. Its pretty simple don’t leave money sitting on the floor after all if you saw on the sidewalk while walking you know you would snatch it up in a heartbeat. Same concept! Got it? Good!