Thursday, November 29, 2012

Should I invest in 401K or in the stock market? ? Roth IRA News

Well it depends on your age and your location and I guess we gould add in your life-style.

If your company as any type of match with your 401K, it would be silly not to fill it up to the point of them matching. SO if they match 25% up to $3,000, at least put in $3,000 because if you don?t, you are leaving $750 on the table.

It also depends on your income and any other factors [IE children, kids college, health issues etc. etc.]

You can?t save enough and when you retire, don?t think you are going to get a nickle from the government if you are in your 20?s. IF somehow Social Security turns itself around [highly unlikely] it will be all gravy and an added bonus. Do not depend on this for a source of income when we are all in our 80?s eating cat food.

When you talk about putting money into the stock market and a 401K, they are in essence, the same thing. I don?t know the exact choices you have with your 401K or what company you are working with so its tough to pinpoint exact funds. Typically if you are 20-something, take some risks inside the 401K. Put 75% or more into the stock market.

I would recommend setting up a brokerage account away from your 401K with a sharebuilder.com or scottrade.com if you have specific stocks or ETF?s you would like to buy into away from your 401K.

And again, depending on the person, I would also recommend setting up a Roth IRA if you meet the requirements. That money goes into the account taxed and will grow tax-free with pretty soft penalties for early withdrawal, NOT that you want to do that.

Also, save to buy a house/condo. Its a decent time to get something with the market being over-saturated with listings.

Source: http://rothira.solve-up.com/roth-ira/should-i-invest-in-401k-or-in-the-stock-market/

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