DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing How to Save Before You are Eligible for Workplace Plans
Jun 16, 2025
The hosts kick things off with funny stories about juggling family responsibilities and the chaos of Vacation Bible School. They dive into strategies for boosting retirement savings before joining a company's 401k plan, emphasizing tax-deferred options like IRAs. The discussion shifts to the significance of understanding employer benefits and planning for both short and long-term financial goals. They also warn against the dangers of impulse spending, highlighting the need to live below one's means to secure financial stability.
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Save Before 401k Access
- If your new job's 401k has a long wait before contributing, look for other tax-deferred options like IRAs or maximizing your spouse's 401k contributions.
- Consider opening a taxable brokerage account to save for midterm goals while waiting to access your 401k.
Focus on Midterm Goals
- Use transition years without 401k contributions to focus on midterm financial goals and bucket your savings accordingly.
- Build funds in brokerage or joint accounts for goals like college or early retirement during such periods.
Evaluate Benefits, Not Salary
- Evaluate job offers by analyzing the entire benefits package, especially healthcare and retirement plan match, not just salary.
- Seek employers who offer a 401k with a match and reasonable vesting to help boost your retirement savings.