2007-09-12 06:02:37 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Yes. Any money that you can put into a 401K is great. Most jobs match up to 5% or so but not all.
2007-09-12 06:07:27 · answer #1 · answered by dkv528 1 · 0⤊ 0⤋
This can be a close call. You get that tax break, which means you'll also get the compounding effect on those extra dollars that you didn't have to pay in taxes. But, your investment options may not be so great within the 401k plan and you have to keep your money locked in for so many years or else pay a penalty. Also, this type of 401k sounds like it may benefit your company more than you since a small amount of 401k earnings is taken as a management fee. I might only participate in your 401k to diversify my holdings and have a little something in a protected retirement account, but if I were in your situation, I would go for a Roth IRA with a discount broker which is potentially a more powerful investment vehicle since your employer doesn't match your 401k contributions.
2007-09-12 13:19:13 · answer #2 · answered by Nikolas M 5 · 0⤊ 0⤋
Yes. It is a good way to save money for when you retire even if your employer is not matching the funds. I have gotten roughly a 10% ROI on mine in the past year which is far more than anything you will get from a savings account. You just have to make sure you invest in the right kinds of funds so that you don't end up losing a bunch of money.
Just make sure you don't put all of your money in one fund or in a fund that is tied largely to the performance of one company. I knew some folks who got burnt because their 401K was tied largely to the performance of their employers stock and saw two-thirds of their retirement money go down the drain when the traditional telecom market bottomed out about 8 or 9 years ago.
2007-09-12 13:17:31 · answer #3 · answered by eaengberg 3 · 0⤊ 0⤋
I'd definitely lean towards the Roth IRA.
The biggest reasons, in order of importance, are going to be:
1. Greater tax benefit
2. Greater investment selection
3. Lower overall cost to your investments.
Hope that helps!
Ken Clark
Certified Financial Planner
2007-09-12 13:49:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes.
Social Security will be long since a memory when you
retire and saving money on your own is impossible.
2007-09-12 13:12:32 · answer #5 · answered by Fuzzybutt 7 · 0⤊ 0⤋
Sure it is ! You just put in as much as you're comfortable with...and it will sit there growing and growing for YOUR FUTURE.
Check this: http://www.finishrich.com/free_resources/lattecalculator.php?
Put in a couple of different amounts ( per month, per week..whatever)...and see how it can add up FOR YOU.
2007-09-12 13:12:30 · answer #6 · answered by jebediabartlett 6 · 0⤊ 0⤋
No. Lol all these people are stupid except nick. Roth IRA if there not matching you.
2007-09-12 13:38:40 · answer #7 · answered by ericsummers123 2 · 0⤊ 0⤋