[cuzg8tor]

I am trying to help my grand daughter make a good retirement savings decision. She is a new employee in the health field (graduated from college last year). Her company does NOT match her 401K contributions. It seems Roth's are more flexible with future withdrawals (not as restrictive as 401ks) but who knows what the tax structure (may negate their advantage) will be when she is able to withdraw her funds tax-free?

She only makes $32,000 per year so could probably use the immediate tax relief of a conventional 401K. She is single, 23 and is not thinking about getting married in the near future. She has done a pretty good job of funding her emergency fund so far in her first year of work. Her only bills are $300 per month for rent (she lives with us), her $275 car payment, telephone bill, car insurance and about $300 per month towards her Masters studies (she has no student loan from undergraduate school). She can probably contribute $300 per month to her retirement at this time.

It seems to me that a prudent move at this juncture might be to split her contributions 50/50 between the non-matched company 401k and a Roth IRA. However, I certainly am not a financial professional and would very much be interested in inputs from you folks as to what you think she should do.

I noted on one post that an individual said he invests in a Vanguard VT1 index fund that levies no commission charges? Does this make sense? If they charge no commission charges how do they make money? Would appreciate inputs as to which investment vehicles she should put her money. Any suggestion for excellent financial advisor for her here in The Villages? Thanks in advance for any inputs to help this wonderful young person that God has blessed us with.