I've been reading r/personalfinance since I started my new job last year. I'm 23 to give some reference. My company provides a 401(k) with 6% match. I recently opened a Roth IRA. In total, I'm on track to save about 27% of my pre-tax salary this year. I know the general consensus on the site is to contribute enough into the 401(k) to match and then try to max your IRA before contributing more. I looked into the returns and expense ratios of the funds, and I'm a little confused on the logic. I have linked a comparison snapshot of the comparable index funds available in each retirement account. I color coded it by category. It appears the returns are higher and the expenses are lower in the 401(k) account (except for the total market account where the returns are slightly higher but the expense is still 9x the 401(k) S&P 500 index). That makes me think I should contribute as much as I can into the 401(k) before contributing to the IRA. Are there nuances that I am not getting?
Submitted January 24, 2017 at 09:57PM by Markymark36 http://ift.tt/2kgyUUN
