Wealth Management Guided Advice

How should I start investing early in my career?

A few best practices can go a long way toward setting yourself up for investment success as a young professional. These include setting clear financial goals, understanding your risk tolerance and diversifying your investments. They also include contributing to your employer-sponsored retirement plan, especially if they offer a match, and opening an individual retirement account (IRA) or taxable brokerage account for additional savings. At TIAA, you can access a team of financial advisors to help you with these strategies and more if you have $100K or more in assets outside of your employer-sponsored plan.

How much should I save for retirement early in my career?

Contributing as much as possible to your 401(k) is crucial for building long-term financial security. Aim for at least 10% to 15% of your pretax salary. But don't worry if that seems high—even contributing up to your employer's match amount can make a big difference. If you can’t afford to contribute the match amount, do what you can. Write a list of your fixed expenses, like housing and health care, and flexible expenses, like dinners or vacations. If all that amounts to your whole paycheck, see what you can scale back to better secure your future.

Should I pay off student loan debt or invest for retirement early in my career?

It's a common dilemma for many early-career professionals. While it's important to pay off debt, don't neglect retirement savings. If your employer offers a 401(k) match, aim to contribute at least enough to get the full match—it's essentially free money. If your student loan interest rates are relatively low, it likely makes sense to balance both goals: making regular loan payments while also contributing to your retirement account. Consulting with a TIAA financial advisor can help you create a strategy that best suits your situation.