Sometimes, its better to forgo your company 401(k) and open an IRA on your own.
Here are some factors to consider in your decision.
Some employers offer a match.
Its a great deal, and oneyou should definitely take advantage of.
Many times both employees and employers are unaware of just how much fees are costing them.
After all, 3% seems like such a small number, doesnt it?
For many families, saving and investing money is not just about retirement.
It is about college, medical expenses, large purchase, and even vacations.
Even if you need flexibility, its a good idea to take advantage of that employer match.
Thinking about the above, also consider author Ramit Sethis ladder of saving.
Take it because thats free money…so take that up to the match.
Then, pay off your credit card debt.
If youre considering your companys 401(k), the employee match is probably the most determining factor.
But it also helps to know the fees and consider your flexibility and other options for saving.
Check out Magnify Moneys full post at the link below.
When to Avoid a Company 401k| Magnify Money
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