Jump to content
IGNORED

401k or IRA ??


Recommended Posts

What you guys think about 401k or IRA? my company matches up to 6% in my 401k, but limited to certain funds in the company program, they go thru first fidelity, I spoke to advisor of first fidelity they say they can move some $$ out of 401k to  a IRA  which they can manage  for a fee 

 

Link to comment
Share on other sites

Remember depending on how old you are ......your money could be tied up for 30-40 years.......you may be able to do better investing on your own.....etc. etc.........

ESTATESALESBYOLGA.COM    ALWAYS BUYING ANTIQUE AND VINTAGE ITEMS  CALL 908 868 8236 MIKE

Link to comment
Share on other sites

Take the free money your company is giving with the 401K AND open up an IRA on your own

Edited by Bucndoe

There is nothing more intolerant than a liberal preaching tolerance 

God gives the toughest battles to his strongest soldiers

"Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy."

 

Link to comment
Share on other sites

You are getting free money in the 401k match so take it.  Depending on plan rules you money is not necessarily tied up as once vested you can borrow from it and you pay yourself back the intrest.  

 I am currently helping newly qualified associates at my workplace enroll in there's.

  Another suggestion is in addition to 401k I also have a 401 Roth wich is taxed before I contribute did thus a few years ago as its being taxed now at current tax who knows how much we will be taxed in the future

Link to comment
Share on other sites

That 6% is FREE MONEY.  In all my past (and current) job, I ALWAYS took out at least enough to get the full company match. Again, IT IS FREE MONEY! :) And think about how the free money is going to grow over the next 10, 20, 30 years (or how ever many years you have to go before retirement). It could grow into the tens of thousands of dollars (or more) - FREE!

Ignore the fact you are "limited to certain funds" - all corporate 401k programs give you a fixed set of funds to choose from. It's mainly to reduce the amount of administrative overhead and to limit the confusion to the average investor to help them decide where to put the money. For me, I just pick a target-date fund or some all-around index fund - just look at the average returns over the funds' lifetimes and you'll get a sense for what is good or not. If you have decades to go for retirement, set-it-and-forget-it. Ignore short-term ups and downs of the market and just keep saving for retirement in your 401k and in 20 or 30 years you'll be amazed how much you will have in your retirement account.

Plus, the money you contribute is taken out pre-tax so you don't pay taxes on it now (only when you take it out when you retire). Yes, you will have to wait until retirement age and you can't really touch it (that isn't technically true - you can give yourself a loan if you need it or you can withdraw with penalty - you should never do this unless you are in dire straits, but you can do it in absolute emergencies). But that's what saving for retirement is all about!!! Save money now, do NOT touch it, and when you are old and ready to retire, you can. Getting a 401k forces you to save for retirement - set-it-and-forget-it and the money is taken out of your paycheck automatically (and again, pre-tax, so it lowers your tax burden today). Do research on how many people close to retirement have little to no savings - they think social security will save them (for most people, it will not). Take the reins of preparing yourself for your own retirement - don't expect the government to be able to support you, because it won't. For the past 25+ years, I've been ignoring social security - I am assuming it won't be there when I retire. All these magical 1 and 2 trillion COVID programs Congress is passing the past year and all these $600 checks they keep sending everyone? How the gov't plans to eventually pay for all of this is a mystery - it wouldn't surprise me if social security gets affected. When I retire, if I do manage to collect some social security, I will consider it a bonus.

 

Link to comment
Share on other sites

What you guys think about 401k or IRA? my company matches up to 6% in my 401k, but limited to certain funds in the company program, they go thru first fidelity, I spoke to advisor of first fidelity they say they can move some $$ out of 401k to  a IRA  which they can manage  for a fee 
 
I don't know who you spoke with but it's illegal for your 401k funds to be moved out to an external IRA while you're still working. Once you either retire or leave the company, then you can do a rollover to a qualified plan with no penalty.

Stick with the 401k and company match.

David

Sent from my moto g(7) power using Tapatalk

Link to comment
Share on other sites

3 minutes ago, vdep217 said:

Another suggestion is in addition to 401k I also have a 401 Roth wich is taxed before I contribute did thus a few years ago as its being taxed now at current tax who knows how much we will be taxed in the future

:up: My company just started offering a 401k Roth and I've been putting a little in that. Again, all of these trillion dollar COVID bailouts are going to have to be paid back - tax rates are going to go through the roof - and the liberals can say they are going to tax the billionaires all they want - unless they take almost every dollar from every billionaire in the US - it won't cover even this latest 1.9 trillion dollar bailout. We WILL be taxed higher to pay for this - it is just a matter of when.

Putting month in a ROTH IRA or 401k can help you hedge your bets on higher tax rates in the future when you retire.

Link to comment
Share on other sites

58 minutes ago, Dominant buck said:

What you guys think about 401k or IRA? my company matches up to 6% in my 401k, but limited to certain funds in the company program, they go thru first fidelity, I spoke to advisor of first fidelity they say they can move some $$ out of 401k to  a IRA  which they can manage  for a fee 

 

Definitely take the money, it's free and most likely factored into your total compensation so if you don't take it you are selling yourself short. Fidelity has some great funds (not sure if you are saying your program is very limited which is possible) I actually prefer my Fidelity to my JHancock account. You can always open a Roth or regular IRA on the side depending on your salary, if not, see if your company will do a backdoor IRA. Also, don't forget the HSA if your company offers one, another great way to avoid taxes. 

Link to comment
Share on other sites

Definitely take the 6% match for as long as they are offering it. When do you befome fully vested? 

If for some reason your company decides to stop matching, then you can think about moving your money.  

If you make enough so that you can max your contribution in the 401k, then do that and if you have extra that you still want to invest, open a Roth

Link to comment
Share on other sites

As already said take the free money.  Check if any fees.  That's 6% maybe be much less.  

I would also recommend a Roth IRA. I started one at 40. Im 46. I put the max in $6k. My optimistic plan is to retire at 61. That should have it over $300k. If average is 8%. It's been averaging 10-12%.   I'll spend that down until I'm 65/66.  Then tap into pension and SS.  This doesn't include a portfolio my wife and I have together. 

Link to comment
Share on other sites

I'm retired 18 years now and my advise is have the MAXIMUM taken out of your pay each pay period that you can put into your 401K and with the added 6% you should have a very nice amount accrued wen you retire. Believe me......... you will appreciate it when you retire.

I thought, growing old would take longer ! 

I spent most of my money on shotguns and fly rods.  The rest I just wasted.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.

×
×
  • Create New...