“Should I use my company 401(k) or an IRA?”
That depends. What are you trying to accomplish?
IRAs can be simple, flexible, and personal. 401(k)s can be automatic, low cost, and accept far higher contributions. However, IRA contributions are limited to relatively smaller amounts and 401(k) plans might not offer the investment choices you wish.
Neither of these tools is perfect. If your goal is small and simple an IRA will likely do the job. If your goal is to salt away significant chunks of money for retirement a 401(k) is likely a better choice. However, the best way to choose is to evaluate your entire financial picture with a trusted financial advisor. When you’ve done your homework the choice will likely be quite clear.
If you have questions or comments, please send them to Gene@AskMtM.com