InsaneZane1
Member
At your age, the Roth route is definitely a good way to go. You're also very wise to pay close attention to it this early in your career. Think of it this way: if you start your account from scratch, get paid $25/hr, work another 27 years (your MRA is most likely 57), and get an average annual yield of 15%, you'll have about $2.1M in your account by the time you turn 57. If you can push that annual yield up higher to 20% for the next 27 years, you'll have over $6M in your account at age 57. All this is assuming you contribute only 6% of your pay and get the 5% agency match with it.
Many people I work with pay little to no attention to their accounts. They have no clue at all just how much trouble they're setting themselves up for too. I found out not too long ago that one of our recent retirees here cautioned one of our Reservists about getting a dual-status job because "the retirement pay sucks". I was able to set the Reservist straight very quickly on how GREAT it can be - but only if you're willing to pay attention to, and manage, your account actively throughout your career.
Many people I work with pay little to no attention to their accounts. They have no clue at all just how much trouble they're setting themselves up for too. I found out not too long ago that one of our recent retirees here cautioned one of our Reservists about getting a dual-status job because "the retirement pay sucks". I was able to set the Reservist straight very quickly on how GREAT it can be - but only if you're willing to pay attention to, and manage, your account actively throughout your career.
