Savings Account vs. Retirement Account for New Graduates are often so eager to start saving money into a retirement account like a 401 (k), but should heed with caution. Often, graduates are at the start of their career and are in the lowest tax bracket of their lives. There is no such thing as saving taxes only postponing the tax that will eventually be due. Graduates should celebrate, pay their tax today and save their money into post-tax strategies.

401(k) Company Matches
Is the match worth it this early on? Having money in the bank to purchase a home or deal with an emergency or unexpected event are important considerations. The 401(k) is rules-based and the rules can change. Putting one dollar into something to get another dollar that you can’t touch or use for 40 years is a hard feat. All too often there are various life events that pop up over a 40-year period that can devastate these portfolios and set people back to zero.