401Ks have been around since the early 1980s, and have replaced pension plans for many employees.
Make the right decision for you, but if your company has a 401k match, you should at least try to take advantage of that match. Pay attention to the vesting schedule, because you may need to stay with your employer for several years before the matched $$’s are yours.
If you have several different 401K accounts from previous employers, investigate rolling them over into one account so it is easier to keep track of your investments.
It’s never too late to start saving for your retirement!
401K PROS
- Tax deferred
- Matching funds
- Free financial advice
- “Set it and forget it”
401K CONS
- Higher Account Fees
- Early Withdrawal Fees before age 59 ½
- Optional – “Has skewed retirement wealth towards the higher end of education and income”
Resources
- https://www.marketplace.org/2013/06/13/sustainability/consumed/father-modern-401k-says-it-fails-many-americans
- https://protectpensions.org/2017/06/27/retirement-savings-decimated/
https://www.npr.org/2018/06/22/622475061/when-retirement-advice-went-viral - http://money.cnn.com/2017/10/19/retirement/401k-ira-contribution-limits-2018/index.html
- http://money.cnn.com/pf/money-essentials-traditional-roth-ira/index.html?iid=EL
- https://www.illinoispolicy.org/reports/pensions-101-understanding-illinois-massive-government-worker-pension-crisis/
- https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street
- http://time.com/money/collection-post/3926814/best-investing-books-shiller-malkiel/
- https://www.rothira.com/blog/will-roth-ira-withdrawals-be-taxed-in-the-future
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