Investments 40l(k) or Roth?
I’m 32 and putting 14% in my 401k. My employer matches 6%. Should I consider decreasing my 401k contribution, and invest it into a Roth IRA or another investment?
Terry Says
If you qualify for a Roth IRA (single less than $!20,000 in MAGI and $189,000 on a joint return in 2018), I would definitely opt to put some money in a Roth. You won’t get the deduction but — if the government keeps its promise — you will get it all out at retirement tax free! And you’ll have a wider choice of investments. But open the Roth somewhere low-cost like Vanguard or Fidelity. And make an automatic investment plan that keeps going no matter what the stock market headlines!