Should I invest in my 401K and a Roth IRA?

Question

My company matches 4% in my 401K. I am invested in that, but should I also be putting money into a Roth IRA?

Answer 1

Invest only in your 401k.

Roth IRA does not match 4% up front...that is a good deal.

Don't live like a miser only to die rich....spend while you are young....401k is fine.

Answer 2

Try to invest 15 % of your income for retirement. Invest in your companies 401K or 403b first-up to what they match. Then fully fund a Roth IRA. If those two things don't get you up to 15% then return to the company 401k or 403b until you are saving 15%

By contributing to your 401k or 403b up to the match you instantly double your savings. What other investment can yield 100% gains instantly?? 401k and 403b plans are tax-deferred. Roth IRA allow you to pay the taxes on the front in so that the principle and any gains are tax-free. Over time it will usually beat a 401k or 403b-except for that portion that your company matches.

Answer 3

if you have the money, hell yeah!!! think about it, 4% of your current pay (even if you have another 30 years to work and with the company match) is going to fun 35-40 years of retirement? you don't have to fully fund the Roth IRA but this account is going to grow tax free and funding it while you are young means it has more time to grow. I also agree with the prior answers, 15% is a great goal % to strive for.

Answer 4

It would never hurt, but you don't have to. Over time, it grows on it's own.