I am 23 years old and just started a new job 6 months ago. I only get paid like…$1500 a month and am putting away only $100 per month towards my 401K. the company I work for has a really great "model allocation" full of stocks and bonds that are supposedly ideal. (For example, the SMP(?) I think, was down -4-8% last year, and they were at 8%) I don't even know what that means, but that's what they said. So anyway, it's a good deal. however, I don't want to stay with this company forever. here are my questions:
1. is a Roth IRA better? should I do both?
2. I want to retire early. I know this depends on how much money I make in my job, but how much money do I need to contribute monthly to retire at like…49? is there a calculator?
3. Why put money into CD's? is it just a savings account that gives you more money in the end?
4. If I leave my company, should I invest in the big companies like GM, GE, etc…instead of the next company I work for?

Check out this site, it has a calculator and such and is written for someone who doesn't have a finance degree. good luck.

There's a great book you should read: "Investing For Dummies." It covers all the basics.

1-go with Regular 401k plan – not Roth
2- in order to retire at 49 , you would have to save more than half or your take home pay every payday and live live a very poor person until and after you retire – age 49 is not realistic, especially if you are only making 18000/yr with only 26 yrs to go and you're just getting started saving – unless you have at least $500,000 in your retirement fund by age 62, you probably won't even be able to retire then
3-CD's pay a lot more than a regular savings account, but still not even enough to keep up with inflation
4-no idea
spread your 401k money around to 3 different types of funds to spread the risk

With $1500 a month, you are probably doing all you can at $100 a month is savings.

a Roth IRA can be better in the long run because when you retire all of the money in the account is tax free. but with a Roth IRA you do have to make the investment decisions yourself although there are mutual fund companies that you can set up the account with that offer retirement plans that are virtually no brainers.

There are calculators that will help work out these numbers. here is a straight foreward one at Yahoo.

finance.yahoo.com/calculator/reti…

Why put money into a CD? the only reason I can think of is because one should have a ready cash hord in case the need arises. a money market account would be better but a CD might do. about 10% of your annual salary at least.

If I leave my company? that question puzzles me somewhat. are you investing all of the 401k in company stock of the company you work for? If you are that is a very very risky proposition especially for retirement money. It is ok to invest a portion in company stock but that portion should under no circumstances be more than about 10% of your investments. too risky.

I believe what you should do is invest in a diversified pool of investments. almost all 401k plans provide such options if not all. you want to spread the risk.

Invest in Real estate!! by time you are 49 you can sell and have more equatity than you would any 401K plan. email or call 1-888-292-0704 I will help you get started. the reason I have the 800 number so it is not long distance for anyone to call. I work with a group of Investors that would love to train you the right way to invest!!