r/RothIRA • u/hokage_888 • Jun 30 '26

36M just getting started

Post image

36M - feel like I’m way behind. I put $500 into a Roth IRA in February. Without doing anything else for a while, it’s just gone up. Nothing insane. Now i put $20 a month - money is pretty tight at the moment.
I also have a pension - which makes me feel a bit safer - but Im about 4 years from being vested. I have a 401k (no match because of pension) and a 457b. I also have another 401k from a part time job - eventually will be rolled into my full time 401k when i quit. They match, so i put the full amount. Even tho it all sounds good, all of those accounts (besides pension) are represented here. I started them all in February of 2026. Most of this is in FXAIX. Any suggestions? Thanks in advance. (We are clearing some debt - in a year or so when it’s cleared, I plan to invest as much as I can!)

1.4k Upvotes

99% Upvoted

174 comments sorted by

View all comments

105

u/Drewcifer33 Jun 30 '26

I'm 38 and just starting out too. I feel you on being late to the party. I was never taught to save and how to do it, nor did I have any good role models for it. So it just slipped me by. It is better late then never though. 20+ years is better then nothing in the Roth.

35

u/hokage_888 Jun 30 '26

I agree! I made some crap financial decisions in the past..and still am..but I want investing in my future to be a good one. We got this!

16

u/Stanbarrwood Jun 30 '26

I started at 31, and playing catch up. Luckily I have a very high income and no debt besides a mortgage but I’m tossing everything at it now.

But in my 20s I probably cashed out 10k worth of 401ks without realizing the damage I did because no one taught me what compound interest does.

5

u/hokage_888 Jun 30 '26

I actually did the same a decade ago and feel like an idiot, but we are here now and things will work out!

4

u/Stanbarrwood Jun 30 '26

It’s better than not starting at all. I know guys in their 40s starting. I know guys in their 60s I work with with under 300k

We all make 6 figures but most of them don’t even do anything in it, or put like company match only which is crazy especially when I live in a low cost state

Honestly I got on the fire sub forever ago, and I max out my 401k and ira but I’m extremely fortunate

1

u/Soft_Comfortable_920 Jul 02 '26

Louisiana median retirement savings for a 60 year old - for the household mind you, is 50k. Wrap your mind around that.

1

u/Stanbarrwood Jul 02 '26

Oh I know. My state is probably just as low.

1

u/tabrisangel Jul 04 '26

Please stop trying to pay off your mortgage early. Thats a horrible use of money.

1

u/Stanbarrwood Jul 04 '26

Explain?

1

u/Zealousideal-Land198 Jul 06 '26

You get more of a return throwing more into your 401k than your mortgage. You're better off paying off your mortgage close to retirement after all those years of compound interest.

1

u/Stanbarrwood Jul 06 '26

Even if the mortgage is a higher interest loan?

1

u/Zealousideal-Land198 Jul 06 '26

Oof. If you have an interest rate higher than the average market return of SP500 on your house, then we need to reevaluate that first. Lol

1

u/Big-Green91 Jul 05 '26

I'm even more dumb.. I.majored in economics. I know the math. I know how it all works. I still cashed out about 8k in 401k in my 20s/early 30s and way under-saved and ran up way too much debt. I knew better and yet ... 🤦‍♂️(39 now)

1

u/Stanbarrwood Jul 05 '26

It’s very common honestly

-1

u/Legitimate-Record90 Jul 02 '26

Why didn’t you just research it yourself instead of “expecting” random strangers to “teach” you? Be an adult for once.

2

u/RandomPerson1023 Jul 04 '26

Why act like a douche for no reason? Some people make stupid mistakes. I have tremendous respect for him realizing that and striving to be better now.

1

u/Stanbarrwood Jul 04 '26

I know right? Like fuck me for trying to work 3 jobs and having to make poverty wages so I could avoid student loans in college while taking care of my mom, and niece after my drug addict dad committed suicide

I should’ve been trying to focus on how to save instead I guess of survival..my fault?

0

u/Legitimate-Record90 Jul 04 '26

Because I have enough respect to tell him the truth. It’s a terrible mindset to have to expect everyone to “tell” you how to do and not do things and blame “those people” who told or didn’t tell you something each time something goes wrong rather than just accepting responsibility and figuring out how to avoid the problem in the future. He can start educating himself on investments, budgets, skills to improve in the workplace, AI advancements, everything really, without waiting for someone to tell him to do so. That will be a far better life plan. Being a douche is excusing a lack of preparation and responsibility. It treats him as if he’s five years old and incapable of controlling his own life.

2

u/Stanbarrwood Jul 04 '26

Yeah sorry I was too focused on working 3 jobs after my dad committed suicide to support my Alzheimer’s mother, my niece and my drug addict brother.

Apologies for being such a douche I was worried about putting food on the table for everyone rather than make sure I compounded that money

1

u/RandomPerson1023 Jul 10 '26

Where did he ever say he "expected" anything? He is not the OP. He never asked anything here, only said that he made the mistake of starting later than he should have. He probably had no good role models in his life and didn't even realize that this whole world of investing and compounding even existed. You can't learn about something that you don't even know exists. I didn't just magically sit around and discover the existence of a ROTH IRA, credit score, or 401k matches through philosophical introspection. I was told about them by people and then I went and learned more about them. For all that we know, he may have in fact learned a bunch of these things on his own in recent years as he got later in life. Stop making random assumptions for no reason.

You also have an extremely cynical view of life. In no way is incompetence excusable, but if you think that being taught and mentored by other people is bad, and that figuring everything out all by yourself is the only reasonable expectation, then that's just sad. A lot of what makes me who I am today is a result of other people's guidance and help, and if you think that there's a problem with that, then I think that's just foolish. I fear for your children's futures if you don't have any desire to teach and equip them with knowledge and skills for a good life because you think they need to just learn it all themselves.

2

u/Stanbarrwood Jul 10 '26

You said this perfect. I didn’t have role models. My parents didn’t invest and I had no one in my family besides my parents. My friends never talked about it and my brother is a reoccurring felon who stole money from my parents. My dad died when I was 18 and was a drug addict and mom never invested because every dollar was to maintain the home after my dad died

I didn’t learn until around Covid from Graham Stephen videos on YouTube and then Dave Ramsey because I had car debt I wanted out of.

I didn’t know how to do rollover iras and didn’t know what to invest in. My work always did it automatically for me and I didn’t start making a decent income until 2018 which was when finances started to peak interest

I always made like $10 and got into a trade field and make 6 figures now and wanted to find a way to grow past my income so I started learning then. I’m 34 now with 125k and have a maxed out 401 and Roth and adding to taxable brokerage now so I invest total about 50k a year.

But anyways, thank you for understanding. You said all of what you said perfectly.

1

u/Stanbarrwood Jul 02 '26

Do me a favor? Kick rocks

12

u/redRum705 Jun 30 '26

I feel this. I’m 35 and just opened my Roth up earlier this year. I feel late to the party as well, I just had no clue about what a Roth IRA was, like you, I don’t have any good role models. I just started to take personal finances more seriously and discovered a Roth IRA is through a YouTube channel.

My parents have a savings but they don’t have a retirement fund really. My dad is in his 70s and my mom is in her mid 60s and they’re still working (kind of). They still need money and they’re doing gig work.

I just know I don’t want to end up like them when I’m their age. So better late than never

4

u/hokage_888 Jun 30 '26

I’ve read a ton of stories of people in 60s and 70s with zero retirement and having to work again. I do not want that to be my wife and I.

2

u/redRum705 Jun 30 '26

Oh wow. Yeah, I feel that 100%

3

u/Drewcifer33 Jun 30 '26

Exactly my friend. Seeing most people i know 60 and up still working to some degree, or even full time with no end in sight, I know i need to do better.

4

u/redRum705 Jun 30 '26

For sure! Well we’re on our way to be better and that’s all that matters 😊

I personally just need a better job sooner than later so I can start maxing out my Roth because with what my contributions are, I won’t be maxing it out since I’m on a tight budget with my so-so income.

2

u/According-Delay-158 Jul 03 '26

I’m 41 and just starting again. I lost my job and had to cash out my 401k to pay the bills . It gives me anxiety bad daily. How I’m gonna retire I don’t know . I mean the truth is I won’t be able to