Where Should I Be Saving? 5 Savings Vehicles Every Woman Should Understand
Everyone tells you to save more money, but no one tells you where the money should actually go. Tracy breaks down the five key accounts every woman needs to understand and, more importantly, the order you should fund them. Because it is not just how much you save, it is where you save it.
5 takeaways from the conversation.
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01
There is a saving order that matters. Start with the 401(k) match (free money), then the HSA if you have one (triple tax advantage), then max the IRA (Roth or Traditional depending on your bracket), then top off the 401(k), then taxable brokerage. Do it in that order.
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02
The HSA is the account almost everyone underuses. Deductible going in, tax-free growth, tax-free out for qualified medical. If you can afford not to spend it now and let it invest, it becomes one of the most powerful accounts you own.
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03
Roth vs Traditional is not one right answer. Roth if your income now is lower than you expect it to be later. Traditional if your income is high and you need the deduction. Women earlier in their careers usually lean Roth.
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04
College savings sits AFTER retirement, not before. You can borrow for college, you cannot borrow for retirement. Parents who fund 529s while under-saving for their own retirement often end up dependent on those same kids later. Put the oxygen mask on yourself first.
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05
The biggest mistake is analysis paralysis. Waiting for the perfect strategy while contributing zero costs more than any wrong-account decision ever will. Start somewhere. You can rebalance later.