I Absolutely Prefer a Roth IRA to a 401(k) for Retirement Savings. Here's Why.
Although saving and investing for retirement looks different for everyone, the end goal is typically the same for most people: ensure you have enough saved to have as financially stress-free of a retirement as possible.Most people's default way to save for retirement is a 401(k) because it's offered through their employer and can be done passively. However, a 401(k) isn't the only retirement account you should embrace. A Roth IRA can be a great complement to a 401(k).Each has its pros and cons, but I must admit that I prefer a Roth IRA over a 401(k) because of three key benefits: tax-free withdrawals in retirement, tons of investment options, and early withdrawal exceptions.Continue reading
Although saving and investing for retirement looks different for everyone, the end goal is typically the same for most people: ensure you have enough saved to have as financially stress-free of a retirement as possible.
Most people's default way to save for retirement is a 401(k) because it's offered through their employer and can be done passively. However, a 401(k) isn't the only retirement account you should embrace. A Roth IRA can be a great complement to a 401(k).
Each has its pros and cons, but I must admit that I prefer a Roth IRA over a 401(k) because of three key benefits: tax-free withdrawals in retirement, tons of investment options, and early withdrawal exceptions.
