Trying to direct a family member on best ways to approach their financial situation.
-They make $25/hr FT
-No employer 401k and absolutely zero personal retirement savings thus far
-Single parent of 1 with no financial assistance from other parent
-$40k student loans on a 20 year IBR forgiveness plan. Half way through with $100/month payments
-Rent is $750/month but it's a shit hole and they want to get out of it
-Has a 6 month emergency fund saved in cash
-Beside the savings, no other investments or retirement.
They don't have much of anything leftover at the end of the month, but anything that is gets put into the savings account.
-Given no employer 401k, and no investment account. What is the next step for them to start preparing for the future? Meaning, if they can start saving even $100 a month, where should it go?
35 yo, with 3-6 months emergency fund, but no retirement savings
byu/PharmerT88 inpersonalfinance
Posted by PharmerT88
2 Comments
https://www.reddit.com/r/personalfinance/wiki/commontopics
Set up a Roth IRA to start saving for retirement. Vanguard or Fidelity works. Make sure it’s invested in actual funds. They can “set it and forget it” by putting it in LifeCycle Fund that aligns with their planned retirement year.