Savings showdown: 401(k)s vs. IRAs


Olde Hornet

Olde Hornet

Well-Known Member
Good Read - Roth IRA is REALLY GOOD.

http://finance.yahoo.com/news/savings-showdown-401-k-vs-141756019.html


With both accounts offering similar benefits, you may be unsure which is best for your money. U.S. News spoke with three retirement savings experts to get their take on the pros and cons of 401(k)s and IRAs. Find out which account wins in a savings showdown.

401(k)s: "Free money" and legal protection in exchange for fewer options


IRAs: More choices but less protection and more contribution restrictions

IRAs, otherwise known as individual retirement accounts, also allow people to save money tax-free. However, these plans have a number of restrictions not found with 401(k) plans.

"With IRAs, there are income limits," Parks says. "If you make too much, you can't deduct [contributions]."
 
I think its good to do all six. Stocks, IRA, mutual funds, 401K, Saving account and checking account. Also always keep a stash at the crib or a safe place for quick money.
 

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Right now, I have a TSP, checking, savings, business, and stock portfolio with sharebuilder. As I am not an active trader and don't have to really do the research I want right now I am thinking of switching that Stock investment each month to an IRA or mutual fund. The mutual fund trading fees seem high though.
 
jsupop33 said:
Right now, I have a TSP, checking, savings, business, and stock portfolio with sharebuilder. As I am not an active trader and don't have to really do the research I want right now I am thinking of switching that Stock investment each month to an IRA or mutual fund. The mutual fund trading fees seem high though.
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I using ETFs through a discount broker.

http://www.investopedia.com/terms/e/etf.asp

DEFINITION of 'Exchange-Traded Fund (ETF)'
An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
 
Olde Hornet said:
I using ETFs through a discount broker.

http://www.investopedia.com/terms/e/etf.asp

DEFINITION of 'Exchange-Traded Fund (ETF)'
An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
Click to expand...
Thanks.
 
Olde Hornet said:
I using ETFs through a discount broker.

http://www.investopedia.com/terms/e/etf.asp

DEFINITION of 'Exchange-Traded Fund (ETF)'
An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
Click to expand...
Any that you recommend?
 
I would avoid bonds at this time, with interest going up - bonds will drop out of favor.

There are some good ones at Vanguard - I will get a couple of names and PM them to you. I was partial to the dividend funds, debating if I want to continue on that path.
 
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