What acts like a 401K - where I can be in control of the money?

Something about the idea that my cash is locked until I%26#039;m an old man is unsettling.

Quick financial brief -

I try to save about 20% of my bi-monthly cheques. But the effort seems futile as I have about 15K of school loans I%26#039;m trying to pay back.

If I save 20% - Couldn%26#039;t I put that into an account that acts sort of like a 401K but I%26#039;m in control of how much money I can put in... how often I put it in... when I take it out (not that I will).

Or am I missing something about the 401K? My company doesn%26#039;t match at this time.

What acts like a 401K - where I can be in control of the money?

agreed with Shane. roth is a good option assuming you meet the eligibility requirements

What acts like a 401K - where I can be in control of the money?

Go with a Roth IRA. It%26#039;s after-tax dollars, which is good if you plan on having a higher salary in the future. You choose what to invest in (stocks, bonds, etc etc) and you only pay a penalty for taking out your earned interest early.

You can only contribute 5000 a year, but you can contribute 4000 for the year 2007 if you do it by April 15...so you can put up to 9000 in it today.

Check out vanguard, they have good IRAs.

What acts like a 401K - where I can be in control of the money?

You could also contribute to your personal Traditional IRA or a Roth IRA (the roth contributions do vary by what you claim for income). IRA or Individual Retirement Account, places the owner in control, not your company. Currently the 2008 contribution limits state that if your under 50 you can contribute $5,000 a year into the IRA%26#039;s and if your over 50 you can contribute an extra $1,000 catch-up.

The traditional IRA is similar to your 401(k). It involves pre-tax money, you get a tax deduction, grows tax deferred, and when you retire and begin taking the money out is when it is taxed.

The roth IRA is similar yet different. It involves AFTER-tax money, NO tax deduction, however it grows with its gains tax deferred and when you take the money out it is tax FREE.

Hope that helps

What acts like a 401K - where I can be in control of the money?

if 20% of your income is over $5000 then you are limited to the 401k. Part of the benefits of the 401k is the larger contribution limits (currently significantly higher at $15,500.) In return for putting away larger amounts then allowable in an IRA you (the investor) have to give up certain rights such as the ability to take a distribution when you want. If you don%26#039;t want to give up that right then you can always put money into an IRA. All about short term headaches in order to reap long term benefits.

What acts like a 401K - where I can be in control of the money?

I agree with above people about IRA options. I love the idea of roth IRA as you deposit money after tax and the money grows tax free. You don%26#039;t pay tax on the interest earned. This is really great if you are young and the money you put in is going to grow and grow until you retire.

As someone who has 25 K in student loans I hear your concerns. If you haven%26#039;t already you need to consolidate your loans into a fixed rate. I have 20K in a 3% loan and 5K in a 6% loan. So I am trying to pay off the smaller higher interest loan with a little extra money every month. I have been told many times not to worry about my student loans cause the interest rates are very low.

I would make sure you have some liquid assets and all your savings is not going into your 401K especially if employer is not matching. Put some in a high interest savings account or something you can if you have an emergency or something.