new job

[Guest friskey]

MY DAUGHTER JUST GRADUATED FROM NURSING SCHOOL. SHE IS 21 YEARS OLD AND I AM TRYING TO TEACH HER HOW IMPORTANT IT IS TO START SAVING NOW AND WHAT AN ADVANTAGE SHE WILL HAVE OVER IF SHE WAITS TO START. SHE WILL HAVE 400.00 A MONTH TO INVEST AFTER ALL HER BILLS AND EVERYTHING. SHE HOPES TO PURCHASE A HOUSE IN A FEW YEARS. HER JOB IS OFFERING A 401K BUT WITH NO MATCH AND THEY MENTIONED A PENSION AFTER A YEAR. IF SHE PUTS ALL $400.00 A MONTH IN THE 401K-SHE CANNOT HAVE HOUSE MONEY OR EMERGENCY MONEY IT IS ONLY FOR RETIREMENT. I WAS GOING TO SUGGEST PUTTING 200.00 IN THE 401K AND 200.00 IN A VANGUARD ROTH INDEX FUND. WOULD THIS BE BETTER THAN EVERYTHING IN A ROTH OR NOT? ALSO IF SHE DOES A ROTH, DO THEY OFFER AN AUTOMATIC DEDUCTION OUT OF YOUR CHECKING ACCOUNT EACH MONTH? THANK YOU SO MUCH FOR ANY HELP-WE COME FROM A FAMILY WHO HAS NEVER SAVED-HER GRANDPARENTS DO NOT HAVE A DIME-I HAVE SAVED AND SEE THE BENEFITS-I DID NOT WANT TO BE LIKE MY PARENTS AND MY DAUGHTER SEES THEM STRUGGLING AND I THINK SHE IS LEARNING AND UNDERSTANDS THE IMPORTANCE. IT IS ALL SO CONFUSING AT TIMES, THOUGH AND I JYST WANT TO SEE IF WE ARE ON THE RIGHT TRACK FOR HER.

[Blinky the 3-eyed Fish]

The Roth is better because you can take out the amounts contributed (not earnings) without penalty at any time, so that can be used for emergencies if needed. Vanguard, like I am sure everyone else, does offer auto checking deduction.