I am in no way an investing guru but here are my two cents on how young people getting started out should invest. First and foremost if your employer is giving away free money take advantage of it. If a company is willing to match on a 401k make sure you contribute the amount that they match up to. For example let’s say they match up to the dollar on 3%. If 3% of your contribution from your salary is $50 that means your company will throw in $50 as well. Each 401k and profit sharing plans are different but make sure you get the free money from your employer if they offer it. On top of getting the free money from your current company, set a goal of contributing to your Roth IRA. Max it out!
If you company does not have a profit sharing program then fund your Roth IRA before the basic 401k. If you have plenty of money leftover after your fund your Roth then you can fund your 401k or other investments such as paying down your mortgage. I think 401k’s are a waste without some sort of profit sharing or company match from employers.
So here are some things to plan for investing in 2008:
Does your company have a profit sharing plan? If so, take advantage of it.
Are you funding your Roth IRA always? Max it out!