401(k) or 403(b) Advice

Okay now that you are hired and you have made it through orientation, you will hopefully get a benefits package. If you are fortunate it will start immediately. If it is for profit, is it a 401(k), nonprofit is 403(b). Most normal people don’t know much about either of these, and the HR people flat out tell you – I aint telling you shit. I know, how rude. Well, if they give bad advice, that is like, called malpractice, and they aren’t insured, so they really don’t have any business telling you how to invest your hard earned cash. I have worked for a financial planner and know a few things about those cool HR benefits. I don’t have malpractice insurance, and it is ultimately up to YOU how you spend your salary, before and after taxes. You might be in a different stage in your life than your new friend from orientation. You might NEED all of your paycheck instead of getting it 50 years later. You need to do what is best for you. So, think of these “funds” this way. If it is aggressive growth and income, it is like the horse races. You will win big fast, but can also lose it fast. Moderate growth is like, federal bonds, city bonds, much safer. And low to no growth but super safe, is like a money market account at a bank. Only invest what you can afford to lose. No one is forcing you to invest or take advantage of that benefit. Chances are you’ll end up cashing it out when you have a life situation/crisis. And that is okay too. If they match 3%, and you an afford it, donate 3% to your rainy day fund. Congrats on that new job. And of course, seek out your inner circle for that investment advice. Or pay someone, that is always an option.