Financial Matters

Tips and news from the financial experts at Attentive Investment Managers.
Oct
18

IRA vs. 401(k): Which is the better option?

IRA vs. 401(k): Which is the better option?
We can all agree that saving for retirement is a must. The next question is where. Both an IRA and 401(k) can be excellent options for retirement savings. Both offer you tax-advantages, as you don't pay any taxes on the growth of your investments. Typically, costs associated with 401(k) management are higher than those of an IRA plan. However, with many new regulations in the financial industry today, participants are given protection from exorbitant fees. Within an IRA account your investment options can be almost never-ending but many times 401(k)'s limit your investment capabilities to a select offering or have restrictions on investment types. With 401(k)'s most employers offer an "employer match", usually ranging dollar for dollar anywhere from 2%-5% of your salary deferral (depending on the plan). If you elect to not participate you are essentially "leaving money on the table" and forgoing additional monies that are employment incentives – ...
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