2006-11-12 16:17:23 · 5 answers · asked by mr mouse 1 in Business & Finance ➔ Personal Finance
diversify your investments
don't lump $ all into one choice/category
if your company will match $ for $ what you put into the 401k?
put as much $ as you can comfortably put in
If the company DOESN'T pay anything into the 401k?
put the $ into a Roth IRA
2006-11-12 16:27:51 · answer #1 · answered by Mopar Muscle Gal 7 · 1⤊ 0⤋
Benefit of 401K ? you'll have some $$ besides social security, which is only enough to pay minimal expenses.
Downfalls ? some 401Ks are all in the companies stock and if it tanks . . . think Enron, you are screwed.
Make sure the investment options are diversified.
2006-11-13 00:27:59 · answer #2 · answered by kate 7 · 0⤊ 0⤋
Participate in 401k = soup and grilled cheeses in retirement
No Participate in 401k = government cat food (unless the republicans take away that for the poor too.)
Which do you prefer?
2006-11-13 08:04:02 · answer #3 · answered by GoodTimesMakingMoney 2 · 0⤊ 0⤋
The upside is that the investment is pre-tax no taxes will be taken out at the time of investment. The downside is that there are limitations & penatlies if you need to access your money before retirement.
2006-11-13 00:31:17 · answer #4 · answered by stoneman 2 · 0⤊ 0⤋
no downfalls, if you would like to retire comfortably
2006-11-13 00:23:43 · answer #5 · answered by robkris110 1 · 0⤊ 0⤋