I did have a 401(k) with a prior employer; and it was best possible way to invest. They doubled up to 5%. I would recommended starting one if your employer offers such a program and add as much as you can afford. Most 401(K) are in mutual funds, which is probably the safest way to invest or less risky; because it is diversified.

Kimberly

I started contributing to a 401(k) as soon as I was eligible in my first job after college. My company matches 3% if I contribute 6%, so I started with that amount. I bumped it up to 7% at some point, so I'm currently at 10% when you include the employer match. (Although, it's actually a little higher since the amount is computed as a percentage of my pre-tax income, but it's my after-tax money that is being contributed since I have a Roth 401(k).) Right now we're working on other financial priorities, but I have plans to increase it in the next couple years as we tackle some of those things.

@ella, a "target date" fund is a good place to start off with a 401(k). It'll adjust your investment types to become more conservative as you get closer to retirement. As you learn more about investing, you can always change it later if you decide you want to be more/less aggressive. Once you max out your employer match, you could also consider opening an IRA if you wanted to diversity with a different company and different investment types. For an investing newbie, I would go for the more varied investment types as opposed to purchasing individual company stocks. Ultimately, the most important thing is that you're contributing!

When I was in college, I worked in retail and luckily, I had been there long enough to be offered a 401(k). Without hesitation, I started one and found that the company matched 5%. Sure, I wasn't making a whole lot - but I wanted to maximize the free money and had no idea how long I would even stay so I had to get it while I could. After I graduated in May, I got a new job at a law firm. My 401(k) at my old job is just sitting there - and the 401(k) opportunity here won't be for another month and a half or so, according to my calculations. My current employer doesn't match, but does some kind of bonus at the end of the year (that goes directly into my 401(k)... I think...). I am planning on putting in about 5% just to start once my 401(k) starts, then roll my old one over (any/all advice re: rolling over 401(k)s are appreciated!). I also have a retirement fund with ING that I am responsible for now that I have graduated and have a job. I just tell myself that I'll see all this money (and more!) a little later.

Hi, I'm really torn, currently have a 401k w/my Company that matches 0%, yes zero! I put 10% auto-pay every check but just temp. stopped. I have 10k in it, and have been told I can't roll it over into an Roth IRA (I know my options and understand why)
Question, do I keep contributing or hold off and put that 10% into an Emergency Savings which DOES NOT exist at this point?? Thanks :/

@jdmrosa, that's a good point thank you. Yes it feels uncomfortable to stop completely! Also uncomfortable to not have an emergency fund Ha. Thanks!