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Do you think a 401k is a good idea for a retirement plan?
Here’s why a traditional 401(k) is a great place to start your retirement savings: If your employer matches your contributions (and most do), you get an instant 100\% return on part of the money you invest in your 401(k). That’s free money. Take it!
Are there any downsides to 401k?
The biggest drawback of a 401(k) plan is they usually come with at least some fees. There are plan administration fees, investment fees, and service fees, among others. If you work for a small company, the fees are worse.
Why you shouldn’t contribute to your 401k?
1. You have high-interest debt. Early in your career, you might have high-cost debt to address. If you have high interest debt, such as credit cards or installment loans with interest rates above 15\%, it may be best to concentrate on paying that off before contributing too much to your 401(k).
What is better than a 401k?
Some alternatives for retirement savers include IRAs and qualified investment accounts. IRAs, like 401(k)s, offer tax advantages for retirement savers. If you qualify for the Roth option, consider your current and future tax situation to decide between a traditional IRA and a Roth.
What’s better than a 401k?
Why the 401k is a bad investment?
There’s more than a few reasons that I think 401(k)s are a bad idea, including that you give up control of your money, have extremely limited investment options, can’t access your funds until you’re 59.5 or older, are not paid income distributions on your investments, and don’t benefit from them during the most …
Are there private 401ks?
While you can’t invest in a 401(k) that isn’t sponsored by your employer, there are a couple of exceptions to the rule. A 401(k) is the most common type of retirement plan private-sector employers offer. However, many employers don’t offer a 401(k), or any type of retirement plan at all.