The past few months have been incredibly hectic. I’ve been at my new job long enough that I have a lot of work piled on me without much direction of how to do it. (I’m expected to know things now, or at least be able to figure them out on my own.) It’s been interesting figuring out what I’m capable of! About a month ago I got a raise, and thought, “Hey! They’re recognizing how much hard work I’ve been doing!” . . . Then more work started piling on, so it must have been a preemptive move on their part!
Last month I maxed out my 2010 Roth IRA before Tax Day. I’ve also set up my auto-withdrawals for this year to max it out for 2011. I have already been contributing 5% of my pre-tax income to my 401(k) since I started at this job – that’s the max to get the company match. They match 100% of the first 3% and 50% of the next 2%. So my 5% contribution automatically gets me another 4%. This week I raised my contribution to 7%. I don’t really think that my 401(k) is the best place to invest that extra 2% . . . but I also know that it’ll be a while before I get around to doing some research and choosing some stocks to invest in on my own, so I might as well bump up this rather than doing nothing.
Right now I feel like things are pretty solid for my long-term retirement savings. I think that soon, though, I need to start contributing to stocks/bonds or other investments that I can start withdrawing from before retirement age. If I want to be financially free by age 45 (or any other age before 59 1/2 when I can start pulling money from my Roth IRA), I’m going to have to have some other investments to draw from! And recommendations?