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How do I go about getting a 401K
I'm 19 years old, and I work at a grocery store. I do have a savings and a checkings. What are some steps I could take in order to acquire a 401K? I don't know much about personal finances. Any input is appreciated. Thanks.
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Where I live the grocery stores are unionized. If you are full time help then you would be part of the union. If you're part of the union it is possible you and your employer contribute to a retirement fund. If so you may not qualify for a 401K.
So the first thing you need to find out is the type of retirement fund you may be participating in. If you have a W-2 form for taxes paid in 2012 this information would be on the W-2 form.
Once you have this information you can go to your local bank and talk with the investment account manager to find out which of the retirement fund accounts you qualify for. There are several other type accounts you can qualify for if you do not qualify for a 401K.
You can also talk to any of the Brokerage Houses such as T. Rowe Price. Brokerage Houses have special funds available for retirement accounts some of which are insured as a banks fund may be and some of which may not. Ask both the bank and the brokerage house if the fund is insured.
Brokerage Houses may offer higher interest accounts. They can do this by putting you in a fund that is based on riskier stocks that pay higher interest. The problem is if the market plunges so does your investment. Ask questions make sure you know where you are putting your money before you invest. The safest 401K is one that is invest in government bonds. It does not pay much interest but you money is safe. You , not the bank or the Brokerage House chose how to fund your account. Also you can change the funding at any time.
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