Personal Finance in Your Twenties and Thirties

Take control of your financial future. Kiplinger editors took your questions about student loans, investing, saving for retirement and more.

As fellow twenty- and thirtysomethings, the Starting Out Kiplinger team regularly offers advice on how to cope with the many personal-finance issues facing our generation today: mounting debts, both personal and national, and seemingly unending un- and underemployment, to name a couple of biggies. Yet while young people face many of the same issues, we recognize that everyone has their own money challenges. So, we’ve rounded up a few of our financial experts to offer personalized financial advice.

Join Kim Lankford, Elizabeth Ody, Jane Clark and Stacy Rapacon on Thursday, July 26 from Noon to 1pm ET as they tackle your questions about student loans, saving for retirement, investing, health care and more. Submit your questions early by clicking "make a comment."

Whether you just landed your first full-time job or are starting to save for a down-payment on your first home, you’re sure to learn a lot. We hope to see you there!

by Amanda Lilly 7/23/2012 4:19:14 PM
Welcome to today's live chat! It's great to see so many young folks out there interested in personal finance.

by Amanda Lilly 7/26/2012 4:00:29 PM
Thanks for coming, everyone! We look forward to hearing from you.

by Kim Lankford 7/26/2012 4:01:27 PM
Hi, everybody!

by Stacy Rapacon 7/26/2012 4:01:53 PM
Hi, all!

by Jane Clark 7/26/2012 4:02:09 PM
We’ve got a great lineup of hosts with us today: Stacy Rapacon, editor of Kiplinger’s Starting Out team; Elizabeth Ody, a contributing editor on the investing side; Jane Clark, a senior editor well-versed in student loans; and Kim Lankford, also a contributing editor well-versed in health care, saving for retirement and more. Welcome all!

by Amanda Lilly 7/26/2012 4:02:36 PM
Hello, everyone!

by Elizabeth Ody 7/26/2012 4:03:06 PM
We received several questions in advance, so let's go ahead and get started!

by Amanda Lilly 7/26/2012 4:03:27 PM
I'm a fresh college grad in my third week of my first full-time job--what's the best place to start if I'm thinking about putting my savings into something slightly higher yield than a typical savings account?

by Chloe 7/26/2012 4:03:58 PM
Hi Chloe - For starters, congrats on getting your first job! Does your employer offer a 401(k)?

by Elizabeth Ody 7/26/2012 4:05:29 PM
Hi, Chloe! Thanks for your question. I'd say, it depends on what you're saving for. If you're looking to build up an emergency fund (which we highly recommend you do), it's best to stick with a savings account that offers flexibility and accessibility.

by Stacy Rapacon 7/26/2012 4:06:12 PM
But if you're saving for a longer-term goal of retirement, we first think you should contribute to your company's 401k, if it's offered, and contribute enough to capture the company's match.

by Stacy Rapacon 7/26/2012 4:07:04 PM
After that, consider a Roth IRA for your retirement savings. We've written a lot about why you need one in our Starting Out columns.

by Stacy Rapacon 7/26/2012 4:07:46 PM
Chloe, here's one of those column's Stacy is talking about: 8 Reasons You Need a Roth IRA Now

by Amanda Lilly 7/26/2012 4:09:06 PM
With those investment vehicles, you can buy stocks or funds that can yield a lot more for you. But keep in mind that with more yield come more risk.

by Stacy Rapacon 7/26/2012 4:09:28 PM
*Within those investment vehicles...

by Stacy Rapacon 7/26/2012 4:09:44 PM
Chloe submitted her question in advance, so while we wait to see if we hear back from her, let's move on to our next question.

by Amanda Lilly 7/26/2012 4:10:10 PM
I just got my first job out of college and it is offering health benefits. Would it be more benefitial for me to contribute to open a Flexible Spending Account (FSA) for health costs or should I put that money aside in my company's 401k. There is a company match of 50% for the first 8% of my income contributed to the 401k.

by khoa152 7/26/2012 4:10:21 PM
Jane, here is a student loan question for you from Shawn.

by Amanda Lilly 7/26/2012 4:10:37 PM
Hi Kiplinger staff! Recently, the companies that have service my federal student loans (eg: Great Lakes and Sallie Mae) have been sending me a number of emails about a direct consolidation plan ("For a limited time, you can consolidate eligible federal student loans and receive a lower interest rate while also streamlining the management of your loans.") However, I don't make much, so I'm on the Income-Based Repayment system. Will this consolidation remove the federal status of my loans and take away my IBR eligibility? Thank you!

by Shawn 7/26/2012 4:10:39 PM
Consolidating federal loans through the direct federal loan consolidation program will not remove the federal status of your loans. If you consolidate private loans with federal loans through a private lender, you will lose the federal loan status.

by Jane Clark 7/26/2012 4:12:21 PM
Congratulations on your first job! If you can afford to, it would be a great idea to contribute to your 401(k) and contribute to an FSA, too. But your first priority should be to contribute at least enough to your 401(k) to get the employer match -- that's free money. Also, keep in mind that your 401(k) contributions may not lower your take-home pay as much as you might think, because the money is contributed before taxes. And then if you can afford to put some money in an FSA, that can help, too, if you have any out-of-pocket medical expenses, and that is pre-tax, too. But be sure to take advantage of the 401(k) match first.

by Kim Lankford 7/26/2012 4:13:20 PM
Thanks, Jane. Here's another student loan question from John.

by Amanda Lilly 7/26/2012 4:13:40 PM
I'm a recent medical school graduate with $200,000 in federal loans. My residency is 4 years long, meaning I will be making about $50k a year until 2016. Would income based repayment be worth the short-term inconvenience (will not even touch the interest) or is forbearance be a better option, assuming I will get a larger salary after residency? Thanks!

by John 7/26/2012 4:13:44 PM
Great advice, Kim. Thanks!

by Amanda Lilly 7/26/2012 4:14:46 PM
@Kim Lankford Thank you Kim, I'll make sure to look into the 401k offerings then when they officially present me my benefits options.

by khoa152 7/26/2012 4:14:57 PM
Here's another investing-based question from Emily

by Amanda Lilly 7/26/2012 4:15:24 PM
Hi, John, I would consider income-based repayment a better option because you can get a start on repayment. With forbearance, you're just postponing the debt and letting interest build up.

by Jane Clark 7/26/2012 4:15:26 PM
What do I do with my money?! I've worked incredibly hard and am lucky to graduate in a year without student loans. I've also been able to save about $17,000 thus far, which is in a normal bank account. When I graduate in May, I'd ideally like to move out and to a bigger city. Should I be investing already? Waiting until I move to see if I need that money? I'm not sure where to go next.

by Emily 7/26/2012 4:15:30 PM
Thanks! If you have any follow-up questions after you receive your benefits options, you can always reach me at askkim@kiplinger.com.

by Kim Lankford 7/26/2012 4:16:06 PM
Thanks, Kim!

by Amanda Lilly 7/26/2012 4:17:16 PM
Hi Emily - You probably want to hold on to a decent amount of that money in cash, since moving is an expensive affair, and to have a safety net as you start your job hunt.

by Elizabeth Ody 7/26/2012 4:17:38 PM
Kim and others, do you have any insight into this next question from Elle?

by Amanda Lilly 7/26/2012 4:17:55 PM
I've been receiving emails and notices about a "new" bank, SmarterBank, that helps new graduates, and others specifically with student loans, in paying down their debts. They use SmartBucks, and give rewards for every time you use a debit card [albeit, it's miniscule]. Yet, I've not heard of this institution before, and was curious whether it was a legitimate establishment, or a fly by night thing. Any thoughts?

by Elle Windsor 7/26/2012 4:17:56 PM
Wow, Emily! Congrats on the big savings!

by Stacy Rapacon 7/26/2012 4:17:59 PM
But I would suggest you could also consider starting a Roth IRA, and begin to funnel a portion of that money into the IRA each month (such as a few hundred dollars), to get into the habit of saving for retirement.

by Elizabeth Ody 7/26/2012 4:18:58 PM
Hi, Elle, Sorry, I haven't heard of this one. How do the SmartBucks get applied to your loans?

by Jane Clark 7/26/2012 4:19:06 PM
apparently, the smarterbucks program works as a rewards type such that an amount based on debit card use is applied towards the debt, yes. i was merely unsure whether this was a legitimate enterprise or which banking institution it was affiliated, etc, as this appears to be one of those online banks, Jane.

by Elle 7/26/2012 4:20:32 PM
Elizabeth and Stacy, what are some options for Emily to open a Roth?

by Amanda Lilly 7/26/2012 4:21:19 PM
Sorry, Elle. I've never heard of SmarterBank either. But it sounds interesting! I'll definitely look into it later, and you can contact us about it at StartingOut@kiplinger.com. In the meantime, you might try checking with the Better Business Bureau about it.

by Stacy Rapacon 7/26/2012 4:21:54 PM
Elle, Again, I'm not familiar so can't help.

by Jane Clark 7/26/2012 4:22:10 PM
familiar with it...

by Jane Clark 7/26/2012 4:22:32 PM
Good advice, Stacy. Thanks. We often get story ideas from these chats, so perhaps that's something we can look more into at a later time.

by Amanda Lilly 7/26/2012 4:22:53 PM
@Stacy Rapacon @Jane Clark - thank you, ladies. I will check w/the BBB, and see about contacting you later, in the event you learn something.

by Elle 7/26/2012 4:23:23 PM
Looks like khoa152 has some information on SmarterBank

by Amanda Lilly 7/26/2012 4:23:44 PM