I am struggling figure out whether it’s worth it for me to open an IRA or continue to contribute to my 401k. Currently I am putting 10% into my 401k, 5% in a Roth and 5% in a traditional fund. I get an employer match of 150% on my first 4% and 50% on the next 2, so I am already getting the full match.
My question is whether I should be also contributing to an IRA. I am 23, making around 85k, and my 401k is managed by vanguard. As far as I can tell, the key differences between a Roth 401k and Roth IRA is that IRAs offer more flexibility in types of investments, don’t need to be transferred after changing jobs because they are not tied to your employer, and often have lower expense ratios. Looking at my 401k, it says my expense ratio is 0.05% which seems very low based on what I’ve seen (I’m probably looking at this incorrectly though).
Can anyone point me to additional resources for my situation or does anyone have any advice? I may be getting a substantial raise in March and likely will split the money between my ESPP and retirements so I want to be a little proactive about where I plan on putting the money.
Thanks in advance!
Submitted November 25, 2020 at 06:48PM by fobonicus https://ift.tt/3nTvUh5
