I have a 401K through work but would like other savings options. What other accounts should I consider?

Answer 1

Do you want your savings earmarked exclusively for retirement or for shorter term needs?

Your time frame makes a big difference.

For retirement you should be maxing your 401K but also invest in an IRA. There are different kinds of IRA accounts so you should consult and advisor OR get a good book on investing before you start so you can make the right choice.

For other money (and you should strive for an emergency stash of cash of 3-6 months of your income), you can open a basic bank account, money market account or CD. These don't earn great returns, but leave money for shorter terms needs accessible and with little risk of it not being there when you need it.

With money for non-specific purposes and a time frame of 5 years or more, there are many, many options open to you. A lot of people invest in mutual funds (a great thing for a new investor) and as you have more money to invest, you can look towards individual stocks, bonds and real estate.

Your best bet again is to either sit down with a financial advisor (investing according to a plan to meet your future needs is really the best way to get what you want), or if you like to do things on your own, go get a good book on personal finance.

Investing minus a good plan for your future will usually not get you your best results.

Answer 2

I get hit with tons of financial mail, and they all advise that the IRS is waiting like vultures to tax 401K's some loophole. It will be around 47%. I would advise you to get a good broker who can advise you on good stock. Do not just go for blue chips. There are penny stocks that you can make a fortune on with little money, and then the bulk of your money you can put into oil stocks and into a mutual fund called Chandia which will be the new financial center of the world - that is China/India (Chandia). The US is due for a terrible depression. The Dow Jones is said will drop a lot, people will lose. The smart ones will invest in the new financial center in foreign firms like Canada's mutual funds. Canada has a law that a payment must be made to its investors of 90% of the profits. Check it out. Banks only pay miniumum. Also for long shots there are off shore investments but they are risky.

Answer 3

There are many options available for saving, but it would be impossible to give you a recommendation without additional details. One of the most important details to know would be why you wish to save. Are you saving for retirement, for a large purchase, for an emergency fund, etc? By first determining what you might be using the money for, you can decide which savings option would be best for you. You may also want to consider investing money, depending on what you plan to do with the money

Some options to research and consider:
Savings Account
Money Market Account
CD (at a bank or credit union)
Traditional IRA
Roth IRA
Mutual Fund
Stocks
Bonds
Company Stock Plan (if offered at a discount)
Annuity
403(b)
457 Plan

I would recommend that you contribute to your company's 401(k) if they offer a match, at least up to the amount they will match. After that, you can determine what option best meets your needs.

Best of luck!

Answer 4

First, save only the minimum required by your 401(k) to get the maximum matching contribution from your employer: example: if your employer states if you will commit 6%-then the employer will give 3%. Save only 6% in your 401(k). Next, before searching and acquiring additional avenues to save or invest-pay off quickly as possible all credit cards, car loans, installment debt other then home ownership, which is tax deductible. Last, after debt free and investment of 401(k) depending on your income tax bracket, you might consider Roth IRA's, acquiring tax free investments, or traditional Money Market funds-all of these are obtained easily through the Yellow pages of your telephone book, or via the internet.

Answer 5

I have money market accounts with Chase Bank which earns 12% interest per year. If you can contribute just as much in your Money Market as you do 401k. You will almost double your contributions.

Answer 6

If for retirement, traditional or Roth IRA. Otherwise, CD's, money market accounts, mutual funds, all depending on your time frame (how long you plan to tie up the money) and risk tolerance.

Answer 7

roth ira a must,if married, wife too, none of the withdrawals are taxable after 59 1/2

Answer 8

How about a Roth IRA

Answer 9

a simple IRA or a life insurance policy vul.

Answer 10

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